Paying Taxes on Poker Winnings in USA

[kceow2981]

I've always wondered how this works, does anyone know? I want to lay out 2 scenarios and I wonder how they would work and how they would be different.

Scenario #1:
Say I lived in New Jersey and played poker on pokerstars full time and made say $100,000 in profits a year. Since online poker is legal and regulated here, then you can declare this as your official income and pay taxes on it right? (Side question, how much would I pay in taxes for this amount?)


Scenario #2:
Now say I lived somewhere else in the USA where online poker isn't specifically made legal, and I needed to play on ignition or Americas Card Room. Could I declare my winnings on one of these sites as my official income and pay taxes on it legally? Or would this not be legal, and you would have to like keep this money under the table/away from the government somehow? Does anyone know this? I've always wondered. (By the way I make literally $0 so far so this isn't a problem for me lmao. I'm currently still a losing player at the micro stakes.)

 

[NBB]

If I am not mistaken, this site is a poker site.You may need to rethink where you post these tax questions.
Hummmm....... maybe a income tax forum or better yet a forum for accountants.


Good luck with that .

 

[kceow2981]

If I am not mistaken, this site is a poker site.You may need to rethink where you post these tax questions.
Hummmm....... maybe a income tax forum or better yet a forum for accountants.


Good luck with that .

This is definitely a poker related question dude, come on. Sure ACR is available for people to play in the US, but can it actually be your official full time job according to the government. Someone here should have some insight on this I'm sure of it.

 

[madjek]

I've declared winnings from poker before. After winning a big tournament. Didn't want to risk irs trouble. But if you want to declare poker as income then you need to register as a professional gambler and keep track of everything. Otherwise you are declaring gambling winnings which is a little different. Think that's how it works anyway

 

[NHequalsFU]

If I am not mistaken, this site is a poker site.You may need to rethink where you post these tax questions.
Hummmm....... maybe a income tax forum or better yet a forum for accountants.


Good luck with that .

This site has many discussions that don't involve poker.


OP's question is most definitely poker-related.

 

[LumeBStackin]

Good question. I'd like to know the answer too. In case I ever win some big satellite or something. Just a pipe dream.

 

[Polytarp]

Having played in Vegas and meeting professionals, based on their lifestyle I would not declare anything for taxes. Keep your chits, restaurant receipts, track your time at the tables and so on. This way you can write certain items off as expenses in case you are audited for some reason.

 

[JDCT12]

I always wondered if I should keep my receipts. Should I?

 

[TheNutz4You]

if you want to avoid any issues with the IRS, then it is probably smart to claim winnings as income and pay proper taxes on it.

 

[kceow2981]

if you want to avoid any issues with the IRS, then it is probably smart to claim winnings as income and pay proper taxes on it.

And you can do that with online poker winnings from ACR or Ignition legally in any state in the United States but Washington you're saying?

 

[Infinity Objective]

I'm a horse, lottery and poker player so I've had reported wins and withholding wins. Always talk with an accountant when dealing with wins / losses, they might have some tricks up their sleeves.

These links should answer most of your questions:

https://www.efile.com/taxable-gambling-winnings-income-taxes/

https://www.irs.gov/taxtopics/tc419

 

[BobbyMorton]

All I can say is thank god I live in Scotland poker winnings not taxed.

 

[kceow2981]

All I can say is thank god I live in Scotland poker winnings not taxed.

Wow really? Thats incredible! That's like suddenly playing without a 30% rake from the government haha

 

[XYZ2123]

I thought I remembered reading an article on CC regarding taxes a couple years ago but can't find it anymore. Maybe I'm wrong. Seems difficult to find reliable info on this problem.