You have to report your gambling winnings as income (and sadly unless you're playing at underground poker clubs or home games there is a paper trail of your gambling profit/loss stats floating around, so it's a bad idea to not report it). They're taxed at the regular income tax schedule, so unless you're making six figures you'll usually never have to pay more than 20%-ish, so don't worry about that. Once you do that, if you itemize your deductions, you're allowed to write off your gambling losses from your taxes up to a max of your winnings, so that if you had a breakeven or losing year (and no other income) you pay no taxes.
Pretty much. You report it in your W-2.Your saying that poker winning should be filed the same as any other king of profit such as a job or something?
you have to file a 1099G
OP states he's in Brazil in his profile.....
Reportable Gambling Winnings
Report gambling winnings on Form W-2G if:
The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine,
The winnings (reduced by the wager) are $1,500 or more from a keno game,
The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament,
The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:
$600 or more, and
At least 300 times the amount of the wager, or
The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding).
...
Foreign Persons
Payments of gambling winnings to a nonresident alien individual or a foreign entity are not subject to reporting or withholding on Form W-2G. Generally, gambling winnings paid to a foreign person are subject to 30% withholding under sections 1441(a) and 1442(a) and are reportable on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. Winnings of a nonresident alien from blackjack, baccarat, craps, roulette, big-6 wheel, or a live dog or horse race in the United States from legal wagers initiated outside the United States in a parimutuel pool are not subject to withholding or reporting. See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
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?
now i can see if you play cards for a living and pay out alot for entries into a game and you win a big some.That it would be right but if your just playing on the weekends with your buddies and friends why even tell the irs you are making money playing cards on the weekends.then its your fault for telling them and if your that crazy then be taxed to death by the gov.