Paying Taxes on your Online Winnings

[PShabi]

Yes, it's been cold. We'll survive!

[melioris]

Whatever Canadians. You could have been someone but then you threw it all away. You had potential, but now you won't get out of our shadow until global warming causing a northern shift in the location of fertile farmland. But that is hundreds of years away. In the meantime, enjoy your new Bush-lite leader.

So, as a thought exercise, lets say you are a small time online poker player, mostly as a hobby. You cashed out around $3000 of profit last year. If you declare this on your Federal forms, what do you do for the state? I appreciate that each state is different, but because it is internet profit, do you have to pay any state taxes on it?

[jaeh00d]

[quote=melioris]Whatever Canadians. You could have been someone but then you threw it all away. You had potential, but now you won't get out of our shadow until global warming causing a northern shift in the location of fertile farmland. But that is hundreds of years away. In the meantime, enjoy your new Bush-lite leader.

LMAO.. fuck those canadians...

[Talking Poker]

Quite frankly, it was a mess... but only because I had someone back me. See, he's getting half of what I won, but they filled out a 1099-G with my name on it, meaning I'm getting taxed on the whole thing. There are partnership forms and whatnot that you can fill out, but he's in a way high tax bracket and wanted me to pay the taxes on the whole thing and then he'd reimburse me. I think this is ok, but it leaves a messy lookinmg paper trail and blah blah blah...

Had this been "normal" circumstances, I'd just be adding 44k under my gambling income and the rest would work itself out.... that's easy enough.

[PShabi]

I believe it's only taxed at the Federal level. There is no state income tax in Florida, for anyone.

[Talking Poker]

This is good for us, but most places in the U.S. have State AND Local Income Taxes. Suckers....

In PA, I had to pay 3.2% state and 2.0% local, as I recall. That's an additional 5% of my income out the window every single year. Moving to Florida was like getting a raise.

Florida rules.

[GeoffM]

Now now, lets not turn this political.

PS: I'm going to Cuba in April, any Yankees care to join me ?

[melioris]

I am in New Hampshire, another no state tax state. But, as I plan to move sometime soon, figured I should ask. Florida may be all warm and shit, but up here our motto is LIVE FREE OR DIE-right on our license plates. Worth living in the state just for the motto.

Also, I love threads like this. Paying taxes on winnings, proper bankroll management, shit like this can be just as important as the cards you play and it is a great reminder to be working on this aspect of the game just as hard.

[PShabi]

That is a hell of a motto. Being educated in the tax laws becomes very important as you start to make more significant income from poker. Serious players should probably hire a professional.