Taxes on poker earnings

[tpb221]

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! It does not matter if you were paid out or not. The IRS still counts it as winnings no matter if you cashed out or not. As long as you have access to the money it's considered winnings at the end of the year.
All poker winnings are considered income and you have to pay taxes no matter if it was won online or live. Yes, even $20 in winnings are taxable. The $300/600 your talking about has to do with casinos/lotterys reporting it. By the way, if you declare yourself a pro, you are also liable for the full amount of SS taxes.(normally, you pay half,employer other half) And best of all, state and local taxes.

 

[RogueRivered]

For those of you who think that the only way the IRS can find out about your gambling income is if you deposit $10,000 or more, you aren't thinking it through very carefully. The IRS has a lot more ways of discovering your deceit than that. Proceed at your own risk.

Also, breaking payment or deposits into amounts less than $10,000 to avoid banking laws is a crime called "structuring." The IRS goes after that, too. http://en.wikipedia.org/wiki/Smurfing_(crime). The penalty is a fine and/or up to 5 years in prison.

See also http://www.forbes.com/forbes/2008/0407/038.html.

 

[Parkview Slim]

Taxings

I thought that currently it is illegal in the U.S. Maybe I am mistaken but I thought I read something on that.

 

[thejuanupsman]

I thought that currently it is illegal in the U.S. Maybe I am mistaken but I thought I read something on that.

To play or to tax? The first is open to interpretation, even my fellow lawyers don't agree on the legality of online poker in the US. It's really going to depend on how the first big challenge case goes.

But, whether it is legal or not has no effect on whether it is taxable. You are supposed to pay tax on all income. Whether it is from a legal or an illegal source. As to those who think it can't be found out...never underestimate the ingenuity of the IRS. Many people who never kept their money in the bank have been charged with tax evasion. The temptation to spend more than your income can explain trips up many, many people. And if you can't spend it, what good is it. You are better off reporting and actually being able to do what you want with the rest.

 

[thejuanupsman]

For those of you who think that the only way the IRS can find out about your gambling income is if you deposit $10,000 or more, you aren't thinking it through very carefully. The IRS has a lot more ways of discovering your deceit than that. Proceed at your own risk.

Also, breaking payment or deposits into amounts less than $10,000 to avoid banking laws is a crime called "structuring." The IRS goes after that, too. http://en.wikipedia.org/wiki/Smurfing_(crime). The penalty is a fine and/or up to 5 years in prison.

See also http://www.forbes.com/forbes/2008/0407/038.html.

Excellent examples. Trust me, tax evasion has brought down people who thought they were untouchable. And I'm not just talking about Capone.

 

[thejuanupsman]

For those who are interested here is at least one lawyer's opinion on the legality of online poker in the us.

http://www.keepplayingpoker.com/legal.html

 

[JUMPY]

I work with a guy who won $90,000 in a bad beat jackpot in '08. He did that strutcuring deal thejuanupsman mentioned . Waiting to see how long it takes for some one who does'nt like him to dime him out.

I "accidently" failed to declare a bunch of 1099 type money in 1995 ..... 9 years later with the fines and interest I owed more than 12 times what I could have paid , and if the amount I didn't report was just a little larger I was told prosicution was a real possability .

Pay your taxxes ..... the Government hates cheaters , they really can't stand the compition !