Two Plus Two Older Archives  

Go Back   Two Plus Two Older Archives > General Poker Discussion > Beginners Questions

Reply
 
Thread Tools Display Modes
  #1  
Old 12-13-2005, 03:53 PM
GoodTiMes GoodTiMes is offline
Junior Member
 
Join Date: Jun 2005
Posts: 16
Default Taxes in California for Pro Gambler

This is my first year as a pro gambler and I was told that I was going to have to owe 44%, 9% state tax, 35% income tax.
I will have deductions but this will not account for much and if this is true I will be getting torn a new one.

Is it really this bad?!?
Reply With Quote
  #2  
Old 12-13-2005, 05:19 PM
Guthrie Guthrie is offline
Senior Member
 
Join Date: Feb 2005
Posts: 471
Default Re: Taxes in California for Pro Gambler

Worse, actually. If you're filing as a pro, then you owe about 17-18% in social security and medicare taxes. And since it's California, you get to pay some other employment taxes. Depending on which city you're in, you may find they require you to get a business license and then they'll tax you some more. Unless you really, really, like living in California, or are making so much money you don't care about the taxes, move out.
Reply With Quote
  #3  
Old 12-13-2005, 11:58 PM
ThaHero ThaHero is offline
Senior Member
 
Join Date: Feb 2005
Location: Los Angeles and .25/.50 on PS
Posts: 199
Default Re: Taxes in California for Pro Gambler

Wo is this for real? Best case scenario you keep 39% of your winnings? Thats absurd!
Reply With Quote
  #4  
Old 12-14-2005, 02:44 AM
GoodTiMes GoodTiMes is offline
Junior Member
 
Join Date: Jun 2005
Posts: 16
Default Re: Taxes in California for Pro Gambler

Can I move out this year and save myself a quick 100k?
Reply With Quote
  #5  
Old 12-14-2005, 01:35 PM
duk duk is offline
Junior Member
 
Join Date: Jul 2004
Posts: 20
Default Re: Taxes in California for Pro Gambler

No one pays 35% in federal income tax.

If you make more than $325,000 or something, the amount over that is taxed at 35%.
Reply With Quote
  #6  
Old 12-14-2005, 09:28 PM
WhiteWolf WhiteWolf is offline
Member
 
Join Date: Mar 2005
Posts: 87
Default Re: Taxes in California for Pro Gambler

[ QUOTE ]
This is my first year as a pro gambler and I was told that I was going to have to owe 44%, 9% state tax, 35% income tax.
I will have deductions but this will not account for much and if this is true I will be getting torn a new one.

Is it really this bad?!?

[/ QUOTE ]

The numbers you quote are probably the top marginal rates. You would only pay that on any money above and beyond the top tier of income, probably around $100K or so. The money you make below that level is taxed at a lower rate.
Reply With Quote
  #7  
Old 12-15-2005, 01:42 AM
GoodTiMes GoodTiMes is offline
Junior Member
 
Join Date: Jun 2005
Posts: 16
Default Re: Taxes in California for Pro Gambler

If you were in my posiiton, would it be a good idea to put one or two hundred k in the retirement account??
Reply With Quote
  #8  
Old 12-15-2005, 02:37 PM
Guthrie Guthrie is offline
Senior Member
 
Join Date: Feb 2005
Posts: 471
Default Re: Taxes in California for Pro Gambler

[ QUOTE ]
If you were in my posiiton, would it be a good idea to put one or two hundred k in the retirement account??

[/ QUOTE ]
If you have one or two hundred k to put in a retirement account, then you should spend a couple of k on tax advice from professionals.
Reply With Quote
  #9  
Old 12-15-2005, 04:07 PM
haakee haakee is offline
Senior Member
 
Join Date: Dec 2002
Location: San Jose, CA
Posts: 416
Default Re: Taxes in California for Pro Gambler

No, if you spend enough of the year residing in CA then you are liable for CA state taxes.
Reply With Quote
  #10  
Old 12-15-2005, 04:09 PM
haakee haakee is offline
Senior Member
 
Join Date: Dec 2002
Location: San Jose, CA
Posts: 416
Default Re: Taxes in California for Pro Gambler

No. Social security tax is capped at around $90K, and the federal marginal rates below $90K are well under 35%.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 11:30 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.