More boring tax questions

[Chadt74]

Cardcoutner, BAD IDEA. I hate to be the person who tells you this, but your broker (If they are in the US) has a record of your stock sales and that can screw you depending on what "huge" is. Sorry you have to pay taxes, if you have held the stock for over a year it is only 15% in most cases. Oh and as for that "I would have paid tax on money I don't have anymore" logic that is just crazy talk and you have a limited grasp of the basic principals of taxation and accounting.

Ginko again I hate to be the one to tell you this, but you owe taxes on any money won so yes the money in your poker account is infact taxable. The cardroom is not regulated by the US government and has no reporting requirements so for now the IRS can not 'see' into the poker room so if you decide not to pay taxes they would almost have no way to 'see' that money. The IRS of course can estimate your winnings based on your cashouts or some unknown formula.

Overall the IRS can and will put someone in jail for tax evasion (of course they'd prefer a payment with interest and penalty) but if you make a mistake and made a good faith effort you will generally be ok and just have to pay the correct amount.

[BigF]

[ QUOTE ]
Cardcoutner, BAD IDEA. I hate to be the person who tells you this, but your broker (If they are in the US) has a record of your stock sales and that can screw you depending on what "huge" is. Sorry you have to pay taxes, if you have held the stock for over a year it is only 15% in most cases. Oh and as for that "I would have paid tax on money I don't have anymore" logic that is just crazy talk and you have a limited grasp of the basic principals of taxation and accounting.

Ginko again I hate to be the one to tell you this, but you owe taxes on any money won so yes the money in your poker account is infact taxable. The cardroom is not regulated by the US government and has no reporting requirements so for now the IRS can not 'see' into the poker room so if you decide not to pay taxes they would almost have no way to 'see' that money. The IRS of course can estimate your winnings based on your cashouts or some unknown formula.

Overall the IRS can and will put someone in jail for tax evasion (of course they'd prefer a payment with interest and penalty) but if you make a mistake and made a good faith effort you will generally be ok and just have to pay the correct amount.

[/ QUOTE ]

Even the OP gets it.

[ginko]

I'm very scared now. I don't know what I'm going to do.

I've made 35k so far. I only have 17k left. I'm supposed to pay quarterly. If I went to pay my tax's today, my bankroll would be demolished. Leaving me with what, 7k?

Tax's are due in april which is 5 months, which means I've already missed 2 quarters. Which means I already have to pay fines because I havnt payed up.

WOW.

[ginko]

I'm seriously considering just taking my chances of going to jail. It's either that, or I'm homeless and BROKE.

[ginko]

Does anyone know kind of fines they give you for not paying quarterly?

[TheMetetron]

[ QUOTE ]
Does anyone know kind of fines they give you for not paying quarterly?

[/ QUOTE ]

You have to pay a certain % on top of what you already owe. It's not huge and it depends on what you made last year if you will even owe quarterly taxes.

You do owe taxes on your winnings though and it won't be 28%, unless you have another job. You have to take into account your personal exemption, standard deduction, and lower tax percentages on the first X you earn.

If you don't have another job, you really need to file as a professional. It will add 15% to your tax bill up to your first 90k in income, however (2% after that).

[ginko]

Hey! An informative response!! Is there light at the end of my gloomy tunnel?

My GF's grandma says I can deduct living expenses such as food/rent/cable internet/computers/clothes. Is this true? I also support two adults, does this mean anything?

Thanks for your time !

[BigBiceps]

[ QUOTE ]
I'm very scared now. I don't know what I'm going to do.

I've made 35k so far. I only have 17k left. I'm supposed to pay quarterly. If I went to pay my tax's today, my bankroll would be demolished. Leaving me with what, 7k?

Tax's are due in april which is 5 months, which means I've already missed 2 quarters. Which means I already have to pay fines because I havnt payed up.

WOW.

[/ QUOTE ]

As long as you have already paid at least (3/4*90% = 68% in a timely fashion) or 90% annually of what you had paid in the previous year (2004) there will be no penalty.

[cardcounter0]

WoW!!! Chadt74, are you being serious or was that some kind of sarcastic reply???
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