Originally Posted by advoghado
As is currently the charged income tax on poker winnings in the U.S.?
For example, if i were playing the WSOP in Vegas and won a cash prize in the FT as i pay income tax? Be allowed any deduction?
According to my tax guy, there are rules just for poker players making winnings. With a 10 million page tax code, that is not surprising. I did find this:
The myth of withdrawals
There is a myth many online poker players still seem to believe in; that you are supposed to pay taxes on withdrawals. But deposits and withdrawals are not what the IRS is interested in or concerned about. The actual wins and losses are the records you need to keep. This myth probably came about by someone trying to evade their tax burden, thinking that the IRS will have a hard time proving you made money online unless you withdraw it to your bank. While this may be true, it is quite a risk and certainly not advisable.
So if you play a poker tournament on December 31, 2009 and win $300, that $300 is taxable when you file your 2009 income taxes. It does not matter if you leave the money in your account, or even if you lose that money on Jan 1 playing a $300 tournament. The $300 must be reported as income for 2009.
From here: http://www.parttimepoker.com/poker-and-taxes
I would get a professionals help as soon as you win $300.00 or accumulate that much. I do not know if they see a 100 here and there, lose it then end of the year = -0- total, but $300.00 total all year, as you owe or do not owe.
Knowing our system, I would say yes. Yet I do recall maybe professional gamblers can deduct losses in some way, shape, or form. Poker players should also.