| This is a discussion on Worried about Winnings and IRS within the online poker forums, in the General Poker section; Hey there, I just won $1,000 playing in a large tournament and now my account is up to $1,100. I was wondering if I decide ... |
|
#1
|
|||
|
|||
|
Worried about Winnings and IRS
Hey there, I just won $1,000 playing in a large tournament and now my account is up to $1,100. I was wondering if I decide to withdraw some of this money and deposit it, will I have any problems doing so? I live in California, U.S.A, and I just want to make sure that it is legal. Do I have to report this much money to the I.R.S. or what? I just don't want the federal government coming after me or anything. Thanks for the help.
|
| Play Texas Hold'em Online Poker | Worried about Winnings and IRS | |
|
|
|
#4
|
|||
|
|||
|
Withdrawing has nothing to do with it. You have to pay any taxes on winnings when you file at the end of the year. Unless you're filing as a pro you cannot net winnings so you must keep a log of winnings and losses. You can still deduct losses though up to your winnings.
|
|
#9
|
||||
|
||||
|
Quote:
Quote:
If you are a US citizen you have to report ALL winnings. Yes-even $1.00. It does not matter if you withdraw or not. As long as you won it and have access to it you must report it in the year won. DURRRRACELL- First-any transaction of $10000- banks,casino ect must report it to the IRS but if you intentionally try to avoid it by taking 5000 then doing another 5000 that itself is against the law. This is why you should take just one big withdrawal and report it once. Even if you do report it on your tax form you can still get yourself in trouble by doing it in 5000 intervals. Second-the IRS and banks do audit deposits and withdrawals under 10000. Do not kid yourself that they don't. OP-get a tax pro to do your taxes next year and report it or your asking for trouble if they ever aduit you. |
|
#10
|
|||
|
|||
|
re: Worried about Winnings and IRS poker
keep track of the costs, and losses, and winnings...like most ppl have said. and do the math and report it regardless of how much you won, even if you broke even, the losses are deducted. the irs doesn't care so much how you got your money or what you did with it...just don't try to be slick. this is one of those things honestly is the best policy. don't wait to withdraw it, just keep track of it all as you play.
|
|
#12
|
|||
|
|||
|
From what I understand all winnings online here is Australia are tax free.
But.........if you travel to the USA and win anything at a live Casino event (WPT, WSOP ) they deduct something like 30% from your winnings prior to issuing you with a cheque or direct deposit into your account. |
|
#13
|
|||
|
|||
|
Quote:
|
|
#15
|
||||
|
||||
|
re: Worried about Winnings and IRS poker
Quote:
|
|
#16
|
||||
|
||||
|
10K, THAN WORRY
I don't think you have to worry about anything unless its over 10K, that's what the IRS cares about. Besides you should really consider building a bigger BR w/ those $1100, try to get it to over 5K than withdraw. But to be safe, you might want to research on these situations.
BEST OF LUCK ![]() |
|
#17
|
||||
|
||||
|
mrmood
First off congrats on the win!! Second - GO SEE A TAX EXPERT!!! No offense to anyone but we are here to play poker, I know I am not a tax expert. (I have been audited 3 times in my life - I'm an independent contractor) The IRS is not someone to fool with, make sure you keep track of all the withdrawals and profit and loss but have a professional deal with the tax situation ![]() |
|
#18
|
|||
|
|||
|
Quote:
Quote:
Quote:
![]() |
|
#19
|
||||
|
||||
|
Wow... there is some real bad info in this thread. Don't take anyone's word for it here, but use google, or better yet talk to an accountant. Zach basically outlined it.
You must pay taxes on all gambling winnings. The way your taxes are computed is on your total winnings. Your losses are taken as a deduction. Don't guess or believe what you want from this thread. If you withdraw you leave a paper trail that could get you in a mess. 10k has nothing at all to do with it. http://www.onlinepokerfaq.com/guide/us-taxes.html http://www.taxabletalk.com/posts/1198018566.shtml Oh and BTW.. you guys in the UK get a better deal on poker winnings that's for sure... but as to taxes in general.. whew boy. ![]() |
|
#20
|
||||
|
||||
|
re: Worried about Winnings and IRS poker
Quote:
Quote:
Quote:
"I hear" and "I guess" don't cut it with the IRS. Do the right thing and get some official info. |
