Cashing Out

[bulldog2782]

Hey i am going to be cashing out of Fulltilt. I am just going to be cashing out the original money i deposited so i would be playing with profit. It is not that much money i am going to cash out but do i need to pay taxes on it? I am not really sure how poker/taxes work in the US. Thanks for any help you can give.

 

[thebiatch22]

oh my you gotta pay taxes on your poker winnings ummmmmmm didnt know about that but good luck and i would like to know this info also

 

[bw07507]

Technically yes you are supposed to pay taxes on your winnings, but if its a small amount I doubt they will notice. Also, your winnings are considered what you have won total, not what you have withdrawn.

 

[bulldog2782]

Wait so does that mean if i deposit $100 and then withdraw $100 then they can not tax that?

 

[zachvac]

Technically yes you are supposed to pay taxes on your winnings, but if its a small amount I doubt they will notice. Also, your winnings are considered what you have won total, not what you have withdrawn.

This. Also technically when you declare income you have to include all wins by session and then deduct losses. Shouldn't matter in terms of what you pay but does on the forms. ie say these are your sessions:

+10
-5
+5
+7
-2
+15
-3
+6
-15
+23

Bottom line you win 41 but you actually have to declare and pay taxes on 66 and you can deduct 25.

But yeah you have to pay taxes on any winnings as you win them not as you cash them out. That said if you don't cash them out the government has no way of knowing it's there, just know that the irs doesn't take kindly to tax fraud.

 

[zachvac]

Wait so does that mean if i deposit $100 and then withdraw $100 then they can not tax that?

The words deposit and withdraw don't mean anything. It's how much you won. Depositting and withdrawing is simply moving money, like if you take it out of your dresser and put it in your pocket. You pay taxes on winnings. How much did you win playing online poker over the year? That's how much you pay taxes on.

 

[brianvoytek]

You don't have to pay it, but If you don't then you might have an issue with everyones Uncle. lol

 

[North_Bank]

Lets hope the British government don't cotton on to this pain in the arse.

 

[Netthug]

tbh I doubt it will matter unless your winnings are in the thousands.

 

[RogueRivered]

There are different rules depending on whether you are a "professional" or "hobbyist." Either way, you have to pay taxes on your winnings, not your withdrawals. I believe professional players have to pay self-employment tax, but they can also deduct business expenses, while a hobbyist can only deduct losses and not expenses, such as computers, software, and travel.

 

[RogueRivered]

Forgot to mention, I wonder how many poker players actually do report their winnings. No wonder Congress wants to get a handle on online poker -- to make it easier to find and collect all that underreported income!