Taxes for poker winnings

PShabi · #1 10-25-04, 11:33 AM

When do you have to start paying taxes on poker winnings? Is there a certain amount before they tax? Also, how would they know if you were a winner or loser? Just because I deposit $1000 worth of checks from Pac Poker doesn't mean I'm on top you know. I play other places.

Anyone with any advice on this would be greatly appreciated.

Also, what percentage can be taxed?

GeoffM · #2 10-25-04, 11:37 AM

Must suck to live in the States and get taxed on EVERYYTHING

.

How do they even monitor how much you make online, seeing as how it is borderline illegal in your parts.

eddo31 · #3 10-25-04, 11:37 AM

im pretty sure that whatever winnings you have would be taxed in the tax bracket that they fell into. somewhat vague, but im pretty sure that is how it works.

i am pretty sure that in a casino you have to fill out tax forms for any winnings over 10k, but it is pretty easy to get around that.

hopefully someone else can elaborate on this, as i dont really have any concrete details. my general thought process on this though is that it is better to play it safe. as much as i would hate to give up a significant portion of my winnings to the irs, it is significantly bettert than getting audited/nailed for tax evasion.

PShabi · #4 10-25-04, 12:10 PM

That's what I'm saying, but how some people don't even keep records, so they don't know if they're up or down. I'd like an expert here. Anybody?

Talking Poker · #5 10-25-04, 02:03 PM

Yopu are supposed to keep detailed records and report ALL winnings AND losings to the IRS each year. The amount you are taxed on is your net winnings.

As for how the IRS "knows" about the money you've won *online*, I don't think they do. But if you decide not to report it, be careful. Tax evasion is a very big deal and it wuold be a very bad thing if you ever got caught.

PShabi · #6 10-25-04, 02:10 PM

I receive my cashouts via check, so there is definitely a paper trail. I'm not trying to find a way to weasel here, I just don't know what the law is and I don't want to get bit in the ass later.

I read someone on another forum that said you could go to a race track and pick up some used tickets. You know how they're always laying around the place, right. He claimed that this could be used as proof of losing and therefore could "balance" your winnings, so to speak. Would this be feasible.

Also, Talking Poker, where in Florida. I'm in Palm Beach County.

PShabi · #7 10-25-04, 02:11 PM

Anyone have a percentage? If I made $10,000 in a year, which is my current goal, how much could I keep?

Penguinfan · #8 10-25-04, 02:34 PM

How much you keep depends on the tax bracket you are in to begin with. As far as declaring losses with tickets you find on the floor, be careful with that one, it's trickier than it appears. You should be able to get a statement from the on-line card room on how much you deposited. TalkingPoker is right, you pay tax on the winnings. You will not get any tax form from them, in a OTB you would get a WG2 form stating the amount won. Since you don't have this from an offshore account you simply put how much profit you made in the spot on your return where it specifically asks for gambling winnings. The IRS will probably take your word for it, but I would try to get a statement from the offshore site about deposits just for your records. Pete Rose was guilty of alot of things, but he only went to jail for tax evasion, do not mess with the IRS.

brokeagain · #9 10-25-04, 03:14 PM

you are on;y taxed on what you claim, if you are a winning live cash game player than who is going to prove you are a winner? online leaves the paper trail, so i would just include that total as income, and then deduct the same amount as a loss.

Talking Poker · #10 10-25-04, 03:15 PM

Brevard County.

PShabi · #11 10-25-04, 05:05 PM

my grandparents and my mom live in Grant. You can deduct this from my post count if you like.

PShabi · #12 10-25-04, 05:05 PM

That seems like the best advice yet. I smell a year of "breaking even!"

johnbaker · #13 10-25-04, 06:02 PM

the IRS only taxes you if you have over $10,000 in winnings, i forget what percentage they tax (probably between 4 and 9 percent)

at B&M you dont really have to worry about this unless u cash more than 10k at once, in which case they'll start doing the tax process right there at the cashier (with forms and stuff)

-jB

Tilter · #14 10-26-04, 03:50 PM

I live in toronto. No taxes from gamblind as long as it isn't your primary income. But I believe if we win a tourney in the states, we will get taxed.

Jackass_man · #15 10-26-04, 03:56 PM

I know that brits who won tourney in the US don't have to pay tax cause of a agreement between governments. Not sure if it's the same for canada.

Talking Poker · #16 10-26-04, 07:48 PM

This is an entirely false post. I mean, if you chooe to cheat on your taxes, so be it, but don't make it sound like you don't need to PAY taxes on money earned if it's less than $10k, because that's just not true.

ChipFish · #17 10-26-04, 08:31 PM

We get it back.
We have a treaty with the States.

johnbaker · #18 10-26-04, 09:47 PM

allright dont get so hostile, I'm just stating whats enforced and what people are likely to encounter if they should cash more than 10k at once. i am in no way enouraging that anyone cheat their taxes.

-jB

lightfungus · #19 12-11-05, 03:56 AM

Tp, if you made something like 2500 this year, would you declare it? A lowly college student as myself?

Zybomb · #20 12-11-05, 03:58 AM

you lost those 5 big $500 buy in tournies this past month

so arent you back to even?

Talking Poker · #21 12-11-05, 04:02 AM

This really should be a new thread. This one is over a year old!

Don't take this wrong, but I don't want to give tax advice. And I definitely don't want to suggest that anyone cheat on their taxes.

Akverno · #22 12-11-05, 06:56 AM

If anyone would like tax advice, pm me. I spent a while working in an accounting firm, and I've done many a tax return. As for gambling taxes it's an interesting loophole depending on how much you've earned and what state you reside in.