taxes on poker winnings

Greenthumb · #1 03-01-2005, 08:12 PM

do you have to pay them? is there any way of cashing out a little chunk of change that wont get you in trouble if you forget to write it in on your tax papers? i dont know anything about this stuff, i had a buddy transfer money into my account to get started a couple months ago. using neteller, i hear you have to pay the 30% or whatever it is, and that blows. can any smart ppl help me out here?
Love,
Greenthumb

LaggyLou · #2 03-01-2005, 08:14 PM

Are you canadian? If so, great, no taxes.

Are you american? Pay up.

Anything else -- beats me.

young nut · #3 03-01-2005, 08:18 PM

use. search. function.

wins_pot · #4 03-01-2005, 08:18 PM

sounds like your talking about small stakes. i wouldn't even think about taxes until your cumulative winnings hit 10k or so. w/ repect to taxes, though, the general rule is....
evasion=very, very bad. the worst you could do is, say, win 300k, then withdraw 3k a day for 100 days. that shows--- you won the money, knew you were supposed to report, but then didn't, and tried to get away with it by withdrawing a llittle at a time.
avoidance=not so bad. i'll leave it to others to explain the difference.

Corey · #5 03-01-2005, 09:17 PM

Also you pay taxes at your marginal rate. For most people that's 25-28%. There is no magical gambling tax rate.