Income Tax on Poker Winnings

[Grossberger]

When I have a job, I pay my income tax, it is taken out before I get my hands on it and therefore, I assume what little money is left over, to be my own.

What I chose to do with it is my business alone. If I gamble, then it is ME taking the risks (calculated gambles) with MY money, not the government.

If I've already paid income tax to get this cash in the first place, why does the government think that they should get a cut when I invest my money in something other than their stocks and shares, and I make a tidy profit on it? (Well... I might do some day!!)

It seems to me that governments worldwide, think that they have complete autonomy over its populace and their finances!!!

Would they issue me with a tax rebate should I lose my shirt, my home etc. through gambling?

Would they bollocks!!!

WELCOME TO THE UNITED STATES GOVERNMENT LOL

your worried about being taxed on money that you made through gambling, yet your not concerned with the fact that once you get your already taxed paycheck, then you pay sales tax,gasoline tax, utilities tax,and all other taxes that we pay after receiving our paycheck. People have computed this tax stuff and come to a calculation of 70% tax rate on everything we get taxed on it adds up to about 70% rate. If we keep going at this rate then its gonna be hand our checks over to the government and they will give you credits to buy stuff. So keep voting for those school levies and putting idiots into positions of power that can't even balance their own checkbook.

 

[Cdub512]

So you have to pay taxes for online poker winnings if they are a certain amount?

 

[dmorris68]

So you have to pay taxes for online poker winnings if they are a certain amount?

Any amount, not a certain amount. Well, to be more precise, the winnings are taxable income, whether you pay and how much depends entirely on your own tax situation.

 

[ukaliks]

lol that suck balls how u have to declare ur winnings on ur tax. In england it is so much easier n i hope we dont jump on that train.

 

[jolubman]

Why pay taxes when you don't have to? It would be worth paying taxes on poker winnings, if the game became legal again in the U.S.

 

[RogueRivered]

Audits and penalties. + a few years of interest on top of that.

 

[Grindit9]

In the netherlands they can tax you up until 12 years back lol, great system huh? Yo dude in 1997 you earned 200 bucks with poker you gonna pay 52% over the 200 + 12 years interest.... You just had to report it now your are gonna pay interest buddy

 

[clubsta]

Hmmm . . . would you rather poker become legal in the U.S. and taxed, or it to stay illegal and not pay tax but possibly get in trouble if you deposit large sums of money into your bank account from oversea sites? Hehe, I'd chose the former.

 

[Ernster86]

LOL how stupid whats the point? Especially since 90% of players are losing players and dont have any "winnings".

 

[whoopwhoop]

If online poker became legal in the U.S., they could tax it. Could solve the economy issues. :/ Lets hope it doesn't come to that.

 

[RogueRivered]

LOL how stupid whats the point? Especially since 90% of players are losing players and dont have any "winnings".

It doesn't work like that in the US. You have to report your winnings, but you can't offset them against your losses. Each session is separate. You can only claim your losses if you itemize deductions. (unless you are a pro).

 

[Lazmansa]

There are 2 things that are certin in life,

Death & Taxes

Lazmansa

 

[LukeSilver]

To the best Of my knowledge poker winnings is not taxed in the uk. That been can tax make poker income impossible?

like for example in sit and goes A good ROI is 10% if they took 27% of every winning sit and go I had I would be moved from been someone who makes a tidy profit to a big loser as with 100% of all online sit and go players, and I would guess all or the vast vast majority of all online players.

If however they take tax on a total performance over a years period I think that would be reasonable and wouldn't complain everyone else gets taxed on there income. Its part of a united society, and as such our moral obligation to up hold in the body of the society.

That been said I would never complain or be unhappy if it continued to remain untaxable here in the UK.

 

[o0SevenBelow]

I was told where I am living if I make $1200.00 USD I have to report it, tho the person who told me so would not be someone i would assume to be up to date on his taxes so I do not know

 

[dmorris68]

I was told where I am living if I make $1200.00 USD I have to report it, tho the person who told me so would not be someone i would assume to be up to date on his taxes so I do not know

IANAL but that is bogus information, unless they're talking about your total income for the year, from all sources, for which there is a threshold where you don't have to file taxes, basically (don't recall if it's $1200 or what). There is so much tax misinformation floating around out there that you should *NEVER* take tax advice from anyone (including me) who is not a tax professional.

That disclaimer out of the way, there is a $600 reporting threshold that requires THE PAYOR to issue you a 1099 and report the income to the IRS. That has nothing to do with your own responsibility as the recipient to report it. As a contrived example, if you make $10 mowing someone's lawn, you're legally obligated to report it even though it won't likely change your tax liability. Of course almost nobody would report $10, as there's likely to be no record of it and the IRS wouldn't go after somebody for $10, but the point stands that it's legally required to report ALL taxable income. I have reported interest earned on small accounts I've held where the total interest was like $3.86 for the year. Hey, I got a form for it, I'm not going to go out of my way to raise an audit flag for not reporting something that possibly got sent to the IRS too, no matter how silly.

Now whether or not you have to actually pay taxes depends entirely on your total tax situation, including total income, deductions, credits, etc etc.

This is a totally unsubstantiated, blanket statement but I expect the majority of players/gamblers don't report all of their winnings that aren't accounted for and reported by their casinos or banks. Especially when dealing with offshore facilities. If/when online poker becomes legal, regulated, and licensed in the US, rest assured there will be mechanisms in place to report those winnings, so tax revenue will increase dramatically but I wonder how many people will be driven away. It's kinda like having a super-rake on top of rake -- typical rake at low-mid stakes tops out at, what, ~10%? Taxes could be as high as 38% or whatever -- now you'll have to maintain a much higher winrate to maintain an equivalent "take home" income, which may not prove worthwhile to many that are right on the edge.