Why Tax?

[slickterp]

basically, with online poker, there is a paper trail, so it'll be hard to get out of it. if you get money transferred to your account or you get a w/drawal check and deposit it, it'll be obvious when it's for 2 grand. if you go to a casino and win, you can have taxes taken out right there so you don't have to pay them later. you have to pay taxes on all income (like investments, etc.) regardless of source.

[RacersEdge]

I was always curious about one thing: isn't $600 the magic number where casino MUST fill out the tax forms on the amount they are paying a player? So what happens if you are playing high stakes poker - say 30/60 - and you win a pot over $600? How is that different than a slot machine?

[Pov]

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I guess you're not getting my point. I think you should only pay taxes on your regular job income, not your hobby. If someone makes a $100 bet on the golf course and wins, they are supposed to report that to the IRS? That cracks me up.

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I think it's stupid to pay taxes on any of my income at all as opposed to useage taxes like gas taxes (use the roads more, pay to upkeep them more) and sales taxes or even luxury taxes on expensive items like yachts and $80,000 cars.

Yet still the IRS demands I pay them and I do becasue that is the law whether I think it's stupid, funny or perfectly normal.

[Chaos81]

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If someone makes a $100 bet

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You said "a couple thousand". That is a big difference then a $100 bet. Maybe a couple thousand isn't much to you, but to others out there, a couple thousand could mean the difference between being comfty and living pay check to pay check.

[mistrpug]

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well, I'm not paying a dime.

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I think you should only pay taxes on your regular job income, not your hobby.

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If you get caught, just explain that to the judge. I'm sure he'll be cool with it.

[Guthrie]

Why tax? To pay for that nice interstate freeway you use to get to the casino.

[william deangelis]

I agree you should pay tax, but people that get all high and mighty about crack me up. The income tax system hurts middle class the most and while the rich the least. Anyone that works is leverage for some rich guy.

[ElyJon]

LMAO at this thread. I played for a year full time, and paid taxes. However if you want to get down to the letter of the law you are required to pay income tax on ANY and ALL income, including winnings.
If you have documented gambling winnings you had better pay the taxes, or you are going to possibly end up in jail as a few poker player have.
If you are a lossing player, especailly a slot player or you play at clubs with Jack Pots, you should document all your wins and losses so that you do not get to stuck for taxes if you hit a JP.
Having said that I am not aware of any non-pro cash players that pay taxes on thier winnings. Not that I am saying this is right, but there is simply no way for the IRS to document with an ample burden of proof the few thousand someone might win a year in low limit poker. And I doubt the IRs would use resources to hunt down that 200 win in the 4/8 game or even the casual gamplers undocumented cash wins. In other words I doubt the IRS really cares as a pratical matter about small gambling winnings. On the other hand, if you work part time in a 7-11 and live in a 1700 a month apartment and drive a $35,000 car, you might be audit bait or looked at very closley by the DEA.

[tek]

In poker tournaments, anyone cashing will get a W2G. In poker cash games, you don't have to worry unless you have cashed out more than 10K (total at that B&M from all games) during the past 24 hours.

So, generally your cash game winnings are tax free...

[Benoit]

When you get a jackpot at casinos and have to fill out a tax form, do they take your SS#? I'm wondering how I could be tracked from online play since I never gave my SS#. I suppose they could do it from my name, address, and check account # at my 3rd party money transfer site... But that seems like a lot of work.

In any event, if I did list my winnings from online, is it only the money I cash out or is it the money I gained over the year (whether or not I cashed it out)?