Poker taxes

About to withdraw some money from pokerstars and was wandering how the taxing would work..

Am I going to get tax for the money I withdraw or if I withdraw a certain amount? and how about deduction and write offs for all the money and long work I did in process of making the money?

Am I going to have to fill out a form for PokerStars after withdrawing??

First, what amount are you planning on withdrawing? I think anything you win at $600.00 or less is not taxed. Check IRS web site. Second if you want to claim any losses you have to have accurate records of your time playing poker to deduct any losses. (Also you can only claim losses up to the amount of your winings. In other words if you have $1000.00 in losses and you withdraw $500.00 you can only write off $500.00 not the whole $1000.00 loss.) The records must include the following, date and time played, entry fee or amount used as buy in for ring game amount won or loss and casino or site. There should be no taxes removed from the payout because the money was made outside the USA. But taxes will need to still be paid when you bring the money back in the country. THe best advice is if it is a large sum check with an accountant or the IRS.

Search for old threads, it's been discussed. Withdrawing doesn't change a thing and you don't have to fill out any forms. When you file your income taxes between January 1st and April 15th next year, you simply include any gambling WINNINGS (not withdrawals) and you can deduct losses up to winnings. So if you make a million bucks and don't withdraw any, you owe taxes on a million bucks.

^^ Good point. If you have money on stars and you won it technically you should be taxed on it. But i believe anything under a certain amount is non taxable. And i know for sure that they have different tax rates depending on your marital status, if you have a college degree, or if you gamble for a living. But like the other man said checkk out the IRS website as that is probably the best way to go about it

I "believe" ( i write believe because i have read a lot about taxes but i`m not sure what is really correct since there is a lot of incorrect information online) that ANY money won is taxable , it does not matter if its less then $600 or more. The reason why people say you have to pay taxes on winnings in excess of $600 is because the website will issue you a W2G form and now you have to pay it since they will forward your winnings to IRS. Yeah many people dont pay winnings on less then $600 because they are non traceable or at least i think so...Also , once you win the money you are responsible to pay taxes, it makes no difference if you lose it all back. Then what you do for example is fill out winnings $5000.00 , losses $5000.

kingsup23 said:

And i know for sure that they have different tax rates depending on your marital status

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Yep

kingsup23 said:

if you have a college degree

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Nope

kingsup23 said:

or if you gamble for a living.

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Nope

It's the same rates as normal income tax. The brackets are different for married couples. College degree and whether you gamble for a living have no bearing on rate. If you gamble for a living I think you can take more deductions related to playing (but then you have to pay self-employment tax that normally your employer matches).

On your federal taxes, you can deduct losses from wins, thereby paying tax only on your net wins for the year. I've never heard of a site issuing a form, though. It's your responsibility to report it.

State taxes are more problematic. I've heard that you pay on your winnings but can't deduct losses. That seems really unfair. If you win a million dollars and lose $999,999, you still pay taxes on the million. Can somebody clarify this?

glworden said:

On your federal taxes, you can deduct losses from wins, thereby paying tax only on your net wins for the year. I've never heard of a site issuing a form, though. It's your responsibility to report it.

State taxes are more problematic. I've heard that you pay on your winnings but can't deduct losses. That seems really unfair. If you win a million dollars and lose $999,999, you still pay taxes on the million. Can somebody clarify this?

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Most likely depends on State. You'd have to check details wherever you live.

thanks for the reply guys i think im just going to wait until tax season is here and ask my advisor