Taxes on poker earnings

M

maityTNT

Rising Star
Silver Level
Joined
Jan 7, 2009
Total posts
20
Chips
0
Does anyone know if we have to report our earnings and get taxed if you are earning money from online poker?
 
E

Ernster86

Rock Star
Silver Level
Joined
Jan 11, 2009
Total posts
247
Chips
0
Not sure where you live..but

I read that in Australia, you dont have to if its not your main income source.
 
K

kennyb123

Rising Star
Bronze Level
Joined
Jan 14, 2009
Total posts
9
Chips
0
thats pretty sad if thats true, but it would be considered a job and i think if you win the wsop you are taxed....i dunno
 
jgmotorfan

jgmotorfan

Enthusiast
Silver Level
Joined
Jul 20, 2008
Total posts
35
Chips
0
taxes on your gambling funds. might notwant to report it if you live in the u.s.
 
F

flyfish4

Enthusiast
Silver Level
Joined
Dec 16, 2008
Total posts
45
Chips
0
in cal in live tourneys u get 1099g on like $680 in a tourny win
 
S

Styrofoam

Visionary
Silver Level
Joined
Jan 14, 2006
Total posts
635
Awards
1
Chips
3
Does anyone know if we have to report our earnings and get taxed if you are earning money from online poker?


in the USA you do, but you can also deduct any losses you have incurred as well. This doesn't mean just poker, any gambling losses can be deducted from your winnings.
 
HousesoftheHoly78

HousesoftheHoly78

Rock Star
Silver Level
Joined
Jan 7, 2009
Total posts
112
Chips
0
IN THE U.S. It's like any other errnings you make. I believe anything over $300 or $600 you have to claim on your taxes. This only go for your payouts though. Not what you have sitting there.
 
Bigsmak

Bigsmak

Rock Star
Silver Level
Joined
Apr 16, 2007
Total posts
193
Chips
0
Move to the UK.. Its all tax free
 
C

chapstick

Rock Star
Silver Level
Joined
Jan 12, 2009
Total posts
105
Chips
0
NO Taxes in the UK! Brilliant!!! I live in the US, but I've never won enough money to find out. So what if you play online and you win tons of small cashes, then you cashout like $1000. Would you have to pay taxes on that?
 
Divebitch

Divebitch

Miss you, Buckster,,,,,
Silver Level
Joined
Apr 30, 2008
Total posts
3,130
Awards
1
Chips
1
Does anyone know if we have to report our earnings and get taxed if you are earning money from online poker?

For anyone who lives in the US, I will personally nominate you for a Darwin award if you do this.
 
RogueRivered

RogueRivered

Visionary
Silver Level
Joined
Oct 20, 2008
Total posts
957
Chips
0
Does anyone know if we have to report our earnings and get taxed if you are earning money from online poker?

In the U.S., definitely.

in the USA you do, but you can also deduct any losses you have incurred as well. This doesn't mean just poker, any gambling losses can be deducted from your winnings.

Not exactly. Well, yes, but you can't just net them out. You can only deduct the losses if you itemize deductions instead of taking the standard deduction. Unless you're a pro, that is. Then you can net them out and take other poker related deductions beyond losses.

IN THE U.S. It's like any other errnings you make. I believe anything over $300 or $600 you have to claim on your taxes. This only go for your payouts though. Not what you have sitting there.

Wrong. I don't believe there is any threshold above which you have to claim. You have to claim all of it. But more importantly, it's not when you withdraw, but when you win it. You must keep a log of your sessions.

For anyone who lives in the US, I will personally nominate you for a Darwin award if you do this.

I really wonder how many in the U.S. do report their winnings accurately. My guess is pretty close to zero. But the IRS can get you on it, and if they do, it won't be pleasant. You might wish you'd been given the Darwin Award.
 
DogzBestFrnd

DogzBestFrnd

Rock Star
Silver Level
Joined
Jan 4, 2009
Total posts
421
Chips
0
Originally Posted by HousesoftheHoly78
IN THE U.S. It's like any other errnings you make. I believe anything over $300 or $600 you have to claim on your taxes. This only go for your payouts though. Not what you have sitting there.
I your total income is below $1000 you dont have to pay taxes. But its a good idea to file anyway, just so they can see it. (I beleive it is $1000, might be more or less)

Unless you're a pro, that is. Then you can net them out and take other poker related deductions beyond losses.
Rogue, do you know what level makes you a pro? Not that I am any where close, just for the info.

Also, there was alot of info on this subject in this thread: https://www.cardschat.com/forum/general-poker-13/online-winnings-taxes-138811/
 
RogueRivered

RogueRivered

Visionary
Silver Level
Joined
Oct 20, 2008
Total posts
957
Chips
0
I your total income is below $1000 you dont have to claim taxes. But its a good idea to file anyway, just so they can see it.

Yeah, I was thinking that he was saying other earnings on top of your regular job earnings, but if you don't have payroll earnings, then I suppose you don't have to file unless you go beyond the threshold. I don't know what that is, but I'll go with your $1000 without looking it up. The problem is that your poker winnings may put you over that amount before you itemize your losses. You can't net them.

Rogue, do you know what level makes you a pro? Not that I am any where close, just for the info.

Well, I don't think it is any set amount. You just have to completely treat it as a business, put in long hours, keep detailed records, and be ready to convince anyone looking at your return that you were intending poker to be your main source of income. Producing several years of losses probably wouldn't look good for your proof. I think they would pretty much assume it's a hobby, unless you can strongly convince them otherwise. It's a judgement call, in my opinion. Having another full-time job at the time wouldn't look good either.
 
Last edited:
Divebitch

Divebitch

Miss you, Buckster,,,,,
Silver Level
Joined
Apr 30, 2008
Total posts
3,130
Awards
1
Chips
1
For anyone who lives in the US, I will personally nominate you for a Darwin award if you do this.
I really wonder how many in the U.S. do report their winnings accurately. My guess is pretty close to zero. But the IRS can get you on it, and if they do, it won't be pleasant. You might wish you'd been given the Darwin Award.
How can the IRS 'get you on it', unless the Feds are hacking your computer? And to do so without just cause would probably be thrown out. Wouldn't you think we'd be hearing about it if anyone got caught and proscecuted for even playing online poker, much less tax evasion? Any stories or accounts welcome from anyone.

Live poker rooms or horse racing are a different story. US regulated and legal. And I believe they ask for ID and send/give you a 1099 or something if you cash out over a certain amount. I thought it was $500 but could be wrong. But I believe this info is reported to the IRS by the casinos/track, so you better report it. But this is why serious pony gamblers will make a lot of small bets on the same horse - better to have 10 wins at $100 each, than a single one for $1000.

But with online poker earnings not being reported to the IRS, I'd think you'd be nuts to just hand it over to them unless you could make a good case for any likelihood of getting caught.
 
G

glemly

Enthusiast
Silver Level
Joined
Jan 14, 2009
Total posts
91
Chips
0
taxing on poker would suck really, really bad.
 
Pike60

Pike60

Rock Star
Silver Level
Joined
Mar 1, 2008
Total posts
127
Chips
0
No taxes in canada on winnings.

In the US, if you keep proof of your loses you can claim this as a deduction from income.The only 'benefit' of paying taxes on winnings. I'm not sure of what the minimums are for this to take effect but I had a tax recovery firm up here get taxes I paid on US winnings back for me. Mind you this was in the thousands so I don't know the minimum.
 
FlowJoe

FlowJoe

Rock Star
Silver Level
Joined
Jun 17, 2008
Total posts
142
Awards
1
Chips
0
In my mind paying taxes on poker online, would be classified as a LEAK. My suggestion is as always ""PLUG THAT LEAK!!""
Peace,
FLOW
 
zippyhippyca

zippyhippyca

Enthusiast
Silver Level
Joined
Oct 25, 2008
Total posts
35
Chips
0
I am US and this is my take of US filing law.
Getting away from the ethical and moral implications of whether or not you should pay taxes, MY understanding is this....any income derived from any gambling activity has a mandatory filing obligation. As stated earlier you would file a form 1040. If your winnings is over $600 (in any single year) the paying party is obligated to report your winnings to the IRS and send you a Form 1099G for filing purposes.(http://www.irs.gov/newsroom/article/0,,id=172190,00.html). If you itemize, you may deduct any losses that were incurred on the road to your winnings. As far as Pro or hobby is concerned, ANY business endeavor that LOSES money for 3 of past 5 years (including current) is considered by the IRS as a hobby(http://www.irs.gov/newsroom/article/0,,id=169490,00.html). Now whats the difference? If you are pro....ALL business deductions apply. If hobby ONLY provable losses to gain the taxable winnings apply. Check out included links.
Zippy
 
Y

youzeaflea22

Enthusiast
Silver Level
Joined
Sep 12, 2008
Total posts
66
Chips
0
I play on one site that is just for US and Canada players and because I won over $300 they sent me a tax form that I had to fill out and mail to them in order to receive a check.
 
R

Rasduce

Enthusiast
Silver Level
Joined
Jan 13, 2009
Total posts
37
Chips
0
If youre a citizen i EU and play at a casino or poker site with a license within the EU, all winnings are taxfree, otherwise You have to pay tax. Seems like most of You guys arent from Europe, but now you know anyway:)
 
E

empirejeff

Enthusiast
Silver Level
Joined
Jan 15, 2009
Total posts
25
Chips
0
IN THE U.S. It's like any other errnings you make. I believe anything over $300 or $600 you have to claim on your taxes. This only go for your payouts though. Not what you have sitting there.

THats why high hand are generally 599 and not 600.
 
DarkAceMafia

DarkAceMafia

Enthusiast
Platinum Level
Joined
Jan 25, 2009
Total posts
89
Chips
0
Looking at this from a banking standpoint, if you deposit more than $10,000 it will get flagged by the bank to report to the IRS. I recommend if you had a big winning in a tournament, dont deposit anything greater than $10,000. Even in the casino's they do this if they are paying out more than $10,000. If you really want to make sure just go the IRS website I suppose.
 
L

letmewin

Rising Star
Silver Level
Joined
Oct 29, 2008
Total posts
20
Chips
0
For anyone who lives in the US, I will personally nominate you for a Darwin award if you do this.

i dont know about any of you but in the usa this government loves to screw its citizens out of money. why would you report to them any poker winnings. they cannot track it unless you deposit into your bank account a sum of 10k or more then it will send up a red flag to the irs and u will have to explain the source of the funds then you WILL be taxed. so i say screw the gov. im keeping all my winnings.
 
F

flipkick7

Rising Star
Bronze Level
Joined
Jan 28, 2009
Total posts
6
Chips
0
i actually just learned about this in my business class you are supposed to report anykind of income that would include poker winnings
 
Top