|
|
#21
07-19-2005, 11:25 AM
|
|||
|
|||
Re: taxes
[ QUOTE ]
Let's say for example that I have a friend, who is 18, has never had a job before is making 4-5k a month playing poker and cashes it all out through checks or using the neteller debit card or even EFT? What would the chances that said person would get busted for tax evasion. [/ QUOTE ] use the neteller debit card and your fine [img]/images/graemlins/grin.gif[/img] 
|
|
#22
07-19-2005, 11:44 AM
|
|||
|
|||
|
Re: taxes
You have said this on more than one occasion.
However, if you note the neteller debit card is issued by a US bank that will be more than willing to give over all their/your records if they are requested to by the US government. If for some reason the feds decided that the majority of neteller debit card users were tax evaders what would prevent them from requesting the banks records?
|
|
#24
07-19-2005, 12:33 PM
|
|||
|
|||
|
Re: taxes
[ QUOTE ]
note the neteller debit card is issued by a US bank that will be more than willing to give over all their/your records if they are requested to by the US government. [/ QUOTE ] Note that this is entirely irrelevant because if the government asks you for YOUR records YOU'RE going to have to give them up - or spend some time in jail and pay some fines.
|
|
#25
07-19-2005, 12:42 PM
|
|||
|
|||
|
Re: taxes
[ QUOTE ]
[ QUOTE ] [ QUOTE ] id really love to hear from u guys about this bc my dad is buggin over the money i am making and the tax issue. [/ QUOTE ] Online Poker Tax Info Be particularly careful about documenting each session you play and don't be tempted to subtract your losses from your winnings--you have to take your losses as itemized deductions! If you look closely, I'm sure that you'll find that though you are cashing out $1k a month, you are actually seriously in the red if you do your taxes correctly. Your Dad is very right to be concerned about the tax implications of your online poker play. It is very very hard to do your taxes according to the law as a non professional and make any money. [/ QUOTE ] How is this possible? It seems pretty ridiculous. [/ QUOTE ] That's because it is ridiculous. You will only lose out on the standard deduction. Since you will be able to have other deductions like state and local taxes, by the time you're done you might end up losing a little bit of money you would have had from your other income, but that's more than compensated by the $1000 a month you're bringing in.
|
|
#27
07-19-2005, 01:09 PM
|
|||
|
|||
|
Re: taxes
[ QUOTE ]
Note that this is entirely irrelevant because if the government asks you for YOUR records YOU'RE going to have to give them up - or spend some time in jail and pay some fines [/ QUOTE ] It is pretty clear that Kyle is under the impression that there is not a paper trail linking him to his use of the Neteller debit card. Since his reason for using the card is so that he can avoid taxes, why would you think that he is is planning on providing any records of these neteller debit card withdrawls in the event of an audit? Kyle's whole point is "Do it this way and they won't catch you" And he would be right if it weren't for a few small details that he has overlooked. Not to mention the fact that he would have to do everything on a cash basis and hope to god the feds don't do a lifestyle audit. GL Kyle
|
|
#29
07-19-2005, 04:24 PM
|
|||
|
|||
|
Re: taxes
Well, I guess I did overstate it and didn't qualify what I meant by "in the red". What I mean is that for a 1k a month player who has a job and takes the standard deduction, you will be taxed on approx 16k of additional income instead of the 12k of income you really made. If you already make $30k/yr and take the standard deduction, your tax liability will be about $1200 more than it would be if you took a 2nd job and made 12k of additional income. That's a 10% gross penalty for poker, which is a big financial hit--particularly if extended over time. If you wind up having a break-even year, you may pay taxes on income you never received.
|
|
#30
07-19-2005, 04:34 PM
|
|||
|
|||
|
Re: taxes
[ QUOTE ]
Well, I guess I did overstate it and didn't qualify what I meant by "in the red". What I mean is that for a 1k a month player who has a job and takes the standard deduction, you will be taxed on approx 16k of additional income instead of the 12k of income you really made. If you already make $30k/yr and take the standard deduction, your tax liability will be about $1200 more than it would be if you took a 2nd job and made 12k of additional income. That's a 10% gross penalty for poker, which is a big financial hit--particularly if extended over time. If you wind up having a break-even year, you may pay taxes on income you never received. [/ QUOTE ] All that is correct, but one thing you left out is that if you itemize deductions, there are some other deductions you may be able to make that you would not have otherwise. This can go a long way towards making up for the loss of the standard deduction. I know in my case, my state and local taxes (which you can deduct if you itemize) are so high that I'll barely have to take a hit for losing my standard deduction. I don't know if that's a good thing or a bad thing. :-)
|
 |
|
|
Linear Mode
