Safe ways to cash out

Slinky · #1 11-08-2005, 11:37 PM

I just moved to the US (married). Can you get in to trouble here for cashing out winnings from poker sites to your Amercian bank account? How about cashing cheques? Is the NETeller card the only way to go or are other ways safe too?

I understand that this may have been dealt with before. Couldn’t find anything useful in search. If you are annoyed by that, please don’t use this thread to tell me.

Thanks for any help.

alimomoney · #2 11-08-2005, 11:39 PM

How do you mean "safe"? You get the money by any method. You owe taxes with any method. Now if the key is that your wife doesn't find out, the neteller card is the way to go...

Slinky · #3 11-08-2005, 11:48 PM

Thanks,

Internet poker is not legal in the US right? That is partly what I mean by safe.

I also wonder if I am likely to be discovered if I forgett to pay taxes on winnings (winnings I've cash out by for example cheque). And what will happen to me if they do discover it?

SoCalRugger · #4 11-09-2005, 12:02 AM

[ QUOTE ]
Internet poker is not legal in the US right? That is partly what I mean by safe.

[/ QUOTE ]
As long as you report it, the IRS doesn't care.

Pokeraddict · #5 11-09-2005, 12:08 AM

It is widely accepted that internet poker is legal unless there is a stae law specifically making it illegal. Just declare it and there is nothing to worry about.

Slinky · #6 11-09-2005, 12:13 AM

Ok, that is good. I am not an american citizen yet, but when I do become one, I will pay taxes on my winnings. Is there a clear answer to the question of how one reports winnings and losses? Is it ok to just report say $45,000 in net winnings, and pay taxes on that? How high is the tax?

Slinky · #7 11-09-2005, 12:52 AM

Found this on a site:

[ QUOTE ]
Q: A player asks: "If I play poker online, do I have to pay any taxes at the end of the year?"

Whether you are a winner or a loser for the year is irrelevant; it is your results on a session-by-session basis that determines your tax liability. The columnists correctly state above that wins and losses are separate figures and are not netted. In addition, the wins online are added to any wins in face-to-face gambling situations to determine the amount of winnings reported for the year. Finally, the payment of taxes is contingent on lots of things, including the amount of losses from gambling sessions and the other income, losses and deductions the taxpayer has.

For example, assume that A plays online poker and has the following results (each for a session): October 10, win $100; October 15, lose $500, November 4, win $300. A has gambling income of $400. A also has gambling losses from his online play of $500. (You can only deduct losses to the extent of your wins. If A’s only gambling were on this online poker site, he would be able to take $400 as an itemized deduction for gambling losses if he elects to itemize rather than taking the standard deduction.)

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Taken from http://www.gambling-law-us.com/Artic...-questions.htm

I'm not sure I understand this. [img]/images/graemlins/smile.gif[/img]

Overdrive · #8 11-09-2005, 01:00 AM

[ QUOTE ]
It is widely accepted that internet poker is legal unless there is a stae law specifically making it illegal. Just declare it and there is nothing to worry about.

[/ QUOTE ]

Even if you are in a state that has such a law it is meaningless. You are actually playing poker in Aruba or wherever the game server is when you play online anyway, not in your home state. [img]/images/graemlins/grin.gif[/img]

BigF · #9 11-09-2005, 02:44 AM

[ QUOTE ]
Ok, that is good. I am not an american citizen yet, but when I do become one, I will pay taxes on my winnings. Is there a clear answer to the question of how one reports winnings and losses? Is it ok to just report say $45,000 in net winnings, and pay taxes on that? How high is the tax?

[/ QUOTE ]

You need to pay taxes on your winnings as long as you live here. If you are a US citizen OR permanent resident, you need to pay taxes even if you don't live here.

Sephus · #10 11-09-2005, 03:16 AM

[ QUOTE ]
[ QUOTE ]
Ok, that is good. I am not an american citizen yet, but when I do become one, I will pay taxes on my winnings. Is there a clear answer to the question of how one reports winnings and losses? Is it ok to just report say $45,000 in net winnings, and pay taxes on that? How high is the tax?

[/ QUOTE ]

You need to pay taxes on your winnings as long as you live here. If you are a US citizen OR permanent resident, you need to pay taxes even if you don't live here.

[/ QUOTE ]

how can a permanent resident not live here?