US Cashout and taxes

naruto_miu

naruto_miu

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When US players, receive a check from an online poker site, must you players pay taxes on that check?

In canada we don't pay taxes on our poker winnings, so I wanted to know exactly if that were the case for US players, or not.

Now assuming you all pay taxes on your winnings, exactly how so does that work? Does the online site, deduct the taxes automatically from your cashout, or not? Assuming they don't, than do you have to pay State tax and Federal taxes, or is it just one tax?
 
WVHillbilly

WVHillbilly

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We pay taxes on ALL income earned. So it doesn't matter if we receive a check for it or not. At the end of the year we list all winnings and subtract any loses (doesn't matter if the $$s are still online or already spent) and pay taxes on the profit.
 
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alexb87

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I have received approx. 23 checks/wester union withdrawls and I have never been taxed for anything.. im sure if you get an extremely large amount in excess of 10k then irs might knock on your door but other than that the irs isn't flagged on money unless its 10k or more
 
naruto_miu

naruto_miu

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We pay taxes on ALL income earned. So it doesn't matter if we receive a check for it or not. At the end of the year we list all winnings and subtract any loses (doesn't matter if the $$s are still online or already spent) and pay taxes on the profit.


Must you honestly list these winnings though? I mean how would they find out if you didn't unless they have access to that type of info? Well than again since you are getting a check I'd assume if you didn't list that check than that's how they would find out, and than you'd be in deep trouble
 
naruto_miu

naruto_miu

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I have received approx. 23 checks/wester union withdrawls and I have never been taxed for anything.. im sure if you get an extremely large amount in excess of 10k then irs might knock on your door but other than that the irs isn't flagged on money unless its 10k or more


So your saying anything under 10k must not be listed/or spoken about but anything over that amount must be? So 9k you'd be ok, but 10k is a no no?
 
WVHillbilly

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So your saying anything under 10k must not be listed/or spoken about but anything over that amount must be? So 9k you'd be ok, but 10k is a no no?
No. He's saying he cheats on his taxes.
 
kidkvno1

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I have received approx. 23 checks/wester union withdrawls and I have never been taxed for anything.. im sure if you get an extremely large amount in excess of 10k then irs might knock on your door but other than that the irs isn't flagged on money unless its 10k or more
You maybe getting that knock on the door sooner than later, check the tax code! It's up to, to report your winnings!
 
dmorris68

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I have received approx. 23 checks/wester union withdrawls and I have never been taxed for anything.. im sure if you get an extremely large amount in excess of 10k then irs might knock on your door but other than that the irs isn't flagged on money unless its 10k or more

"Never been taxed for anything?" Do you not understand how taxes work? It's on you to report your earnings, and you're breaking the law by not doing so. Way to report that you're a tax cheat in a public forum.

And there are many ways for the IRS to discover your winnings. The $10K threshold is widely misreported and misunderstood. Banks are required to report cash transactions, not checks or wires or anything else, that exceed $10K, or multiple cash transactions together that total more than $10K, or otherwise "suspicious" transactions that raise flags at the bank.

Must you honestly list these winnings though? I mean how would they find out if you didn't unless they have access to that type of info? Well than again since you are getting a check I'd assume if you didn't list that check than that's how they would find out, and than you'd be in deep trouble
What kind of question is "Must you honestly list these winnings?" Of course you must, it's the law. If as a US resident you do not, you're cheating on your taxes and breaking the law. Simple as that.

It has nothing to do with a check or not.
 
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ahol27

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Must you honestly list these winnings though? I mean how would they find out if you didn't unless they have access to that type of info? Well than again since you are getting a check I'd assume if you didn't list that check than that's how they would find out, and than you'd be in deep trouble

In terms of getting access to the info, take a look at full tilt right now. The US government has access to the account history of every player on full tilt. Any Americans that had winnings on full tilt that they never reported should be worried.
 
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erdnase13

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You even have to pay taxes on any money you have made illegally... Remember how they took down Al Capone?
 
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AcesUp747

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Yes you pay taxes on all money earned, regardless whether you have received it or not.

Tho I am starting to come around to the idea of only reporting received income after being burned several times now from shady sites........
 
barfbag

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I had to fill out a W-9 for winnings

small checks came from Canada. (no problem) But won a $2,600 Tag Hauer watch and W-9 needed to be filled out.
 
naruto_miu

naruto_miu

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I'm fortunate enough, I don't have to deal with none of this stuff, I was always curious about it though, so I thank each and everyone one for informing me about how things of this nature works in the states..
 
SANDYHOOKER KY

SANDYHOOKER KY

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The state of Kentucky has a line for gambling winnings. They may catch you, or they may never catch you, but if you don't report any winnings, your a tax cheat, plain and simple. I'd rather pay the taxes and sleep good at night, than not pay them and keep one eye open and get a crappy nights sleep. Besides, if they do catch you, it's gonna be a whole lot more than you would have paid.
 
supernuts25

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i wouldnt pay taxes on it if its still in your poker account kinda strange they would say that
 
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AcesUp747

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Earned income is reported for when it is earned, not received.

If a plumber fixes your sink on Dec 31 2012, but you pay the bill on Jan 4th 2013, the income is still technically from 2012.
 
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loomis311

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From what I read briefly on google in the past is that you have to report all your poker winnings. I did not read anything about if it less than $10K than you do not have to pay taxes on it.

It was also saying that if you win a poker tournament and then lose the winnings the next day, you still have to report the poker tournament winnings and get taxed on it.
 
dmorris68

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From what I read briefly on google in the past is that you have to report all your poker winnings. I did not read anything about if it less than $10K than you do not have to pay taxes on it.
Correct. There is no minimum threshold.

It was also saying that if you win a poker tournament and then lose the winnings the next day, you still have to report the poker tournament winnings and get taxed on it.
Also correct; however you can also claim the loss as a deduction to offset the income from the win.
 
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moneyman925

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How come when you go to a casino they only tax you when you win a certain amount that is high enough?
 
dmorris68

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How come when you go to a casino they only tax you when you win a certain amount that is high enough?
First of all, a casino doesn't "tax" you. They might, in some cases where the amount is high enough or state/local regulations require, collect the tax on your behalf and send it to the state/IRS. That has nothing to do with whether the payment is taxable or not.

Also, when another party pays you over $600 in value -- whether it be for gambling winnings, contract work, gifts, or whatever -- and intends to write it off their own taxes as a business expense, they must issue you and the IRS a 1099 for the payment. They can opt to collect the tax themselves on your behalf, but in most cases they will simply report the payment to the IRS on a 1099 and leave it to you to file and pay the tax yourself. If you do get issued a 1099 and don't report it, you've just raised a red flag on your return that will almost guarantee a follow-up by the IRS if not a full blown audit, because they will already know you were paid from the 1099 issued.

That reporting threshold, however, has absolutely nothing to do with your requirement to report any amount of income.
 
T-Dubs82

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How come when you go to a casino they only tax you when you win a certain amount that is high enough?

i am just happy i didnt get taxed on the $5.25 i won on video poker
 
starting_at_the_bottom

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Feel sorry for you lot in the US.

They ban you from playing (for the most part), and then tax those that do play.
 
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rugby0

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The one twist in the tax law is that you can only deduct your losses to the total you have won. In most businesses you can carry the loss forward and deduct against next years winnings.
 
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nightmoves44

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The US makes you feel like a criminal for even playing poker,then they tax you on top of that,really making you a criminal,if you don't pay taxes on it.

ps-I have to add that you should not have to pay taxes until you actually cash the check,because techincally,its not yours until the site signs off on it,ok-ing your withdrawl.In the mean time,the site could close and take all the money with them,like pitbull poker did.....assuming they did,can you deduct that loss??..anyways,reporting when you actually cash a check,makes alot more sense.Just my op tho.
 
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spstevens

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There also is a difference in the profit/loss rules for players depending on whether or not they are professional players or not. If it is your profession and you can document it properly there is a different criteria than just binking a big win as a casual player.
In addition as a pro you get travel , lodging etc. as a business expense type of write off. Do it proper or they can spank you hard.
Many things are like that , as a real estate professional you can write off actual losses without limit but as I recall a casual investor not in that profession is limited to 25K passive loss as a write off.
But yes you by law are required to pay tax on your winnings.
 
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