Cashing out and taxes

I use netteller and have a question for later when I actually start winning money:

1. Is trans. money easy from Netteller to Bank account (have seen question about legality, live in KY)

2. The big question lets say I have a good year and pull in about 10000 in a year from any poker site. When I do my taxes how do I figure that 10g.

thanks

lwillson said:

2. The big question lets say I have a good year and pull in about 10000 in a year from any poker site. When I do my taxes how do I figure that 10g.

thanks

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If you net 10g, you have to claim 10g. Regardless of whether you won it online (offshore) whatever. It's income. Your tax preparer can help you out. Or if you file on your own, Turbo Tax and other websites probably have FAQs on how to compute it.

If you win $10 you obviously dont have to claim it. 10g however may be a different story.

I am unaware of your tax laws, but if like most countries there is a threshold for declarations, it would be wise to withdraw amounts less than that threshold therefore avoiding paying taxes.

I couldn't help noticing how confident you are about building up such a bankroll if you have never won before.
I wish you well, but i also warn you that it is not as simple as that.

Good luck

zinzan1000

I am from canada, but I do know that any lottery winnings over $10,000 in the USA are subject to tax in the USA. This should fall under 'other income' as it shouldn't qualify as personal income, business income or investment income. The only way it should qualify as one of those is if you were a professional poker player, which, by the sounds of it, does not apply to you (yet).

Of course, if you are not sure, there is PLENTY of literature out there - the IRS website should be able to help you further.

In Ohio, and many other states, the threshold for taxes on winnings starts at anything over 600 dollars. If you win 10 grand at once then taxes on that amount would be due, but if you win 500 dollars 20 times then no tax is due. It might be wise to make smaller withdrawls on the accumulated amount instead of trying to go for the whammy on a large amount at the end ( there's a limit on how much you can take out anyways). This way might not raise any red flags, or leave any trail that you would have to account for.

One point that hasn't been mentioned yet is that earnings occur when you win them, not when you cash them out. This is how it works with investment income, etc.