Poker Tax Law in US?

#1 8th October 2007, 10:18 PM

Hi everyone,

Someone told me at the tables the other day that in May of 2008, US Casinos will be required to keep 25% of your winnings (over $5000) and send directly to the government.

I've searched around the forums, but haven't seen anything.

Does anyone know the details of this?

Thanks in advance,

Buck

#2 8th October 2007, 10:28 PM

I don't know about keeping your winnings, but I do know that casinos are supposed to issue you a W2-G form and report your winnings to the IRS if you win over $1200 at once.

#3 8th October 2007, 10:33 PM

wow that would be really lame!!! government just going to keep taking people's money anyway they can

#4 8th October 2007, 10:35 PM

False, a rumor only.

#5 8th October 2007, 10:37 PM

Yeah, I've gotten that form. But that still leaves it up to you, to report everything.

This one seemed a lot more invasive. I would have normally ignored the guy, but he seemed to have a good idea of what he was talking about.

I'm gonna look further, keep you guys updated.

#6 8th October 2007, 10:46 PM

Searching online I just found this:

W-2Gs: Debunking the Big Lie.* W-2Gs not required in poker tourneys

Quote:

... This will undoubtedly result in operators of poker tournaments issuing Forms W-2G to and withholding income taxes from players who are paid proceeds (net of the buy-in to the tournament) of $5,000 or more at a 25% rate.

It looks like you're totally right, aliengenius.

But it seems like it came pretty close!

Thanks...

#7 8th October 2007, 11:02 PM

Time to start itemizing tournament buy ins to use as a tax write off!

#8 10th October 2007, 6:23 PM

Quote:

Originally Posted by phatjose

Time to start itemizing tournament buy ins to use as a tax write off!

Yep, should be documenting all casino losses regardless of amount. Just remember that losses can only be used to reduce tax liability on winnings, nothing more.

#9 11th October 2007, 10:10 PM

i'm glad i'ts a false rumor well my cable has been out for a while..

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