Online Poker Taxes

[fnurt]

Bank transactions only happen if you deposit/withdraw. If all you're talking about is your balance at the offshore poker site going up and down from day to day, it is safe to say the US authorities will never have access to those records.

[Phantom]

Fair enough, I agree with you on this.

[Vazh]

I haven't talked to an accountant yet, but I plan to report my withdrawals from Neteller to my bank account as income. Since I don't anticipate contributing any more money I won't have any losses to deduct, except those from B&M that I will, of course, claim. I do keep very accurate daily (session) records though, just in case.

Damn, I just lost another $1000 playing live... [img]/images/graemlins/wink.gif[/img]

[solring]

How do people count bonuses from poker sites and online casinos?

[GWB]

[ QUOTE ]
How do people count bonuses from poker sites and online casinos?

[/ QUOTE ]

As income of course, you don't think it qualifies as a gift do you?

[jess72]

I'm tax clueless and don't understand why I can go to a local casino and win $1199 (playing slots) and not have to pay taxes on it? And if you win playing poker online you do? Does it have something to do with govenment regulations reguarding internet gambling?

When I first started playing online poker I didn't keep track of nothing. I just deposited and starded playing. I suppose I've made $2000 dollars in the past year. I would have a check sent to me now and again. Then I would go to the bank and cash it and so be it!!!! Now just how many people do the same thing I just did. I bet thousands do it and don't have a clue or ever worry about it. I'm not saying it's right though. That being said, I've started keeping track of my sessions and plan on talking with an accountant. WHY? I haven't a clue.

I can see how this subject could get drawn out. I've seen plenty of posts about taxes and they always get heated.

I also whored a few casinos this year. I suppose I need to keep track of this as well??? [img]/images/graemlins/mad.gif[/img] [img]/images/graemlins/mad.gif[/img] [img]/images/graemlins/mad.gif[/img]

Jess

[GWB]

You are supposed to pay taxes on your slot winnings (less offsetting loses) although they can't really track this unless you win a big jackpot. Online casinos and poker winnings are taxable and leave paper trails.

You are supposed to keep track of your session results and bonuses. Since you have a paper trail of deposits and withdrawals, you have enough to report your online gambling income correctly.

The IRS is most concerned with you paying taxes - so lack of detailed records can be forgiven in the beginning. As you earn more and learn more, they will likely be less forgiving, so start recordkeeping ASAP and don't lose sleep over the initial poor recordkeeping. [img]/images/graemlins/smile.gif[/img]

[PlayerA]

Here's another question. Assuming I use the deposit/withdrawal method for reporting. Can I claim my previous year's deposits as losses? I started playing online last year and made a few deposits. I've not made any deposits this year and I'm ready to start making withdrawals.

[brianmarc]

Audit rates are arounf 1.2%. How many outs does that represent?

[fnurt]

[ QUOTE ]
Here's another question. Assuming I use the deposit/withdrawal method for reporting. Can I claim my previous year's deposits as losses? I started playing online last year and made a few deposits. I've not made any deposits this year and I'm ready to start making withdrawals.

[/ QUOTE ]

I don't get what you mean by the "deposit/withdrawal method." Is this something that is sanctioned somewhere? Something you inferred was OK from a post here?

To me, making a deposit into an online site is in no way a loss. You're simply transferring money from one of your accounts into another. Counting a deposit as a loss makes it far too easy for someone to shift tax liability from one year to the next, and I'd be surprised if the IRS would approve anything of the sort.