Taxes question

AceHiStation · #1 11-15-2005, 03:30 PM

Hey guys, sorry cause I"m sure this has been done before, but here goes...

I was wondering what a non-professional poker player needs to do about taxes. Lets say I'm up 50K for the year, but only have withdrawn 25K of that money. When do I need to pay taxes. Should I claim money in my partypoker account, or just money I've cashed out? Any other advice?

Thanks,
-Ace

Niediam · #2 11-15-2005, 03:45 PM

Assuming you live in the US...

You need to pay taxes on all your winning 'sessions' even if you have yet to take the money out of the poker site or neteller. You may also deduct your losing sessions if you do not take the standard deduction - but only up to amount of your winning sessions.

scrapperdog · #3 11-15-2005, 05:40 PM

[ QUOTE ]
You may also deduct your losing sessions if you do not take the standard deduction - but only up to amount of your winning sessions.

[/ QUOTE ]
We cant take the standard deduction and deduct our losing sessions?

I would love for a cpa or tax expert to do an in-depth gambling winnings tax faq and have it stickied.

iceman5 · #4 11-15-2005, 05:46 PM

[ QUOTE ]
[ QUOTE ]
You may also deduct your losing sessions if you do not take the standard deduction - but only up to amount of your winning sessions.

[/ QUOTE ]
We cant take the standard deduction and deduct our losing sessions?

I would love for a cpa or tax expert to do an in-depth gambling winnings tax faq and have it stickied.

[/ QUOTE ]

You have to itemize deductions in order to write off losses

Chadt74 · #5 11-15-2005, 06:23 PM

"We cant take the standard deduction and deduct our losing sessions?"

No if you use the standard deduction you can not itemize.

The reason CPAs do not post stickies is that this is a very specialized part of the law/tax code where there are many gray areas and each case probably has to be reviewed on their own basis. If you search there was some pretty detailed information last year that had a few CPAs giving their veiws on tax issues.

Schwartzy61 · #6 11-15-2005, 05:59 PM

[ QUOTE ]
[ QUOTE ]
You may also deduct your losing sessions if you do not take the standard deduction - but only up to amount of your winning sessions.

[/ QUOTE ]
We cant take the standard deduction and deduct our losing sessions?

I would love for a cpa or tax expert to do an in-depth gambling winnings tax faq and have it stickied.

[/ QUOTE ]

You want an FAQ on Gambling taxes?

Check out:

The Gambler's Guide to Taxes, written by Walter L. Lewis, who just happens to be a CPA.

popeye18 · #7 11-15-2005, 04:44 PM

Ok so say i have 40k in winning sessions and 30k in losses, for a net profit of 10k. If i declare properly(and put the 40k as wins, and then have the 30k as deductions) how much am i looking at paying? Im 20, full time student, a dependent, and poker was my only income in 2005. Thanks.

Niediam · #8 11-15-2005, 04:52 PM

You most definately want to speak to a CPA/tax lawyer.

iceman5 · #9 11-15-2005, 05:07 PM

[ QUOTE ]
Ok so say i have 40k in winning sessions and 30k in losses, for a net profit of 10k. If i declare properly(and put the 40k as wins, and then have the 30k as deductions) how much am i looking at paying? Im 20, full time student, a dependent, and poker was my only income in 2005. Thanks.

[/ QUOTE ]

You dont need an accountant. Turbo Tax handles it just fine. You already know that you need to seperate your wins and losses. You dont need an accountant to do the math for you.

popeye18 · #10 11-15-2005, 05:11 PM

[ QUOTE ]
You dont need an accountant. Turbo Tax handles it just fine. You already know that you need to seperate your wins and losses. You dont need an accountant to do the math for you.

[/ QUOTE ]

Well my father is very knowledgabke when it comes to taxes so i plan to use him. Im just curious if anyone has an idea on how much ill owe.