Worried about Winnings and IRS

M

mrmood6007

Rock Star
Hey there, I just won $1,000 playing in a large tournament and now my account is up to $1,100. I was wondering if I decide to withdraw some of this money and deposit it, will I have any problems doing so? I live in California, U.S.A, and I just want to make sure that it is legal. Do I have to report this much money to the I.R.S. or what? I just don't want the federal government coming after me or anything. Thanks for the help.
 
kidkvno1

kidkvno1

Sarah's Pet
Awards
4
from what i hear, under $500.00 year you don't need to report, but any thing over that you need to.
Do not mess with the IRS, they can hit you hard, also you have to check with your state, as far as what you may ow them.....
 
Mase31683

Mase31683

Legend
You don't have to worry about it yet. Keep track of what you win and spend on poker tournaments, then at the end of the year, the profit is what counts.
 
zachvac

zachvac

Legend
Withdrawing has nothing to do with it. You have to pay any taxes on winnings when you file at the end of the year. Unless you're filing as a pro you cannot net winnings so you must keep a log of winnings and losses. You can still deduct losses though up to your winnings.
 
Tom1559

Tom1559

Legend
I wrote a comment on your other blog. Well done again. As far as the winnings are concerned enjoy. We dont have this kind of problem in the UK. You get a hard time in the USA over online gambling.
 
woody19

woody19

Legend
i just dont no y they cant allow the us playes to have the same rules as the uk just weird but hay as i havent a problem being that i live in the uk but still i feel for some us players :):)
 
DURRRRACELL

DURRRRACELL

Enthusiast
Your ok 1100$ is nothing. The banks and IRS only audit 10k$ and up deposits. When i withdrawal i do it in 5k$ intervals. I'm new to this site so hope to see you around.
 
tpb221

tpb221

Chasing Gutshots
from what i hear, under $500.00 year you don't need to report, but any thing over that you need to.
Do not mess with the IRS, they can hit you hard, also you have to check with your state, as far as what you may ow them.....

Your ok 1100$ is nothing. The banks and IRS only audit 10k$ and up deposits. When i withdrawal i do it in 5k$ intervals. I'm new to this site so hope to see you around.

WRONG WRONG WRONG!!!!!

If you are a US citizen you have to report ALL winnings. Yes-even $1.00. It does not matter if you withdraw or not. As long as you won it and have access to it you must report it in the year won.

DURRRRACELL- First-any transaction of $10000- banks,casino ect must report it to the IRS but if you intentionally try to avoid it by taking 5000 then doing another 5000 that itself is against the law. This is why you should take just one big withdrawal and report it once. Even if you do report it on your tax form you can still get yourself in trouble by doing it in 5000 intervals. Second-the IRS and banks do audit deposits and withdrawals under 10000. Do not kid yourself that they don't.

OP-get a tax pro to do your taxes next year and report it or your asking for trouble if they ever aduit you.
 
T

ted80

Rock Star
keep track of the costs, and losses, and winnings...like most ppl have said. and do the math and report it regardless of how much you won, even if you broke even, the losses are deducted. the irs doesn't care so much how you got your money or what you did with it...just don't try to be slick. this is one of those things honestly is the best policy. don't wait to withdraw it, just keep track of it all as you play.
 
H

Heatherbrianne1

Enthusiast
I agree keep track of everything.. Any history of statements.. You shouldnt have a problem with withdrawing that amount tho.. But in case the I.R.S. Does end up wanting to know where it came from show the the statement.. Best of luck! :D
 
G

Grinderinoz

Enthusiast
From what I understand all winnings online here is Australia are tax free.

But.........if you travel to the USA and win anything at a live Casino event (WPT, wsop ) they deduct something like 30% from your winnings prior to issuing you with a cheque or direct deposit into your account.
 
Infamous1020

Infamous1020

Visionary
Hey there, I just won $1,000 playing in a large tournament and now my account is up to $1,100. I was wondering if I decide to withdraw some of this money and deposit it, will I have any problems doing so? I live in California, U.S.A, and I just want to make sure that it is legal. Do I have to report this much money to the I.R.S. or what? I just don't want the federal government coming after me or anything. Thanks for the help.

i wouldnt worry considering its not like 10k or anything
 
robert_wrath

robert_wrath

Rock Star
I think the I.R.S. tax players upon withdrawals of funds which are won over $10,000.00 annually for online gaming. Any amount under $10k is exempt from Uncle Sam.
 
5TR8 FLUSH

5TR8 FLUSH

Legend
Awards
1
10K, THAN WORRY

I don't think you have to worry about anything unless its over 10K, that's what the IRS cares about. Besides you should really consider building a bigger BR w/ those $1100, try to get it to over 5K than withdraw. But to be safe, you might want to research on these situations.

BEST OF LUCK :D
 
Leo 50

Leo 50

Legend
Awards
1
mrmood

First off congrats on the win!!
Second - GO SEE A TAX EXPERT!!!

No offense to anyone but we are here to play poker, I know I am not a tax expert. (I have been audited 3 times in my life - I'm an independent contractor)
The IRS is not someone to fool with, make sure you keep track of all the withdrawals and profit and loss but have a professional deal with the tax situation

:cool:
 
Zorba

Zorba

27
Awards
14
C

cAPSLOCK

Cardschat Elite
Wow... there is some real bad info in this thread. Don't take anyone's word for it here, but use google, or better yet talk to an accountant. Zach basically outlined it.

You must pay taxes on all gambling winnings. The way your taxes are computed is on your total winnings. Your losses are taken as a deduction.

Don't guess or believe what you want from this thread. If you withdraw you leave a paper trail that could get you in a mess. 10k has nothing at all to do with it.

http://www.onlinepokerfaq.com/guide/us-taxes.html
http://www.taxabletalk.com/posts/1198018566.shtml

Oh and BTW.. you guys in the UK get a better deal on poker winnings that's for sure... but as to taxes in general.. whew boy. ;)
 
Stick66

Stick66

Legend
Withdrawing has nothing to do with it. You have to pay any taxes on winnings when you file at the end of the year. Unless you're filing as a pro you cannot net winnings so you must keep a log of winnings and losses. You can still deduct losses though up to your winnings.
This. ^^^

If you are a US citizen you have to report ALL winnings. Yes-even $1.00. It does not matter if you withdraw or not. As long as you won it and have access to it you must report it in the year won.

DURRRRACELL- First-any transaction of $10000- banks,casino ect must report it to the IRS but if you intentionally try to avoid it by taking 5000 then doing another 5000 that itself is against the law. This is why you should take just one big withdrawal and report it once. Even if you do report it on your tax form you can still get yourself in trouble by doing it in 5000 intervals. Second-the IRS and banks do audit deposits and withdrawals under 10000. Do not kid yourself that they don't.

OP-get a tax pro to do your taxes next year and report it or your asking for trouble if they ever audit you.
This. ^^^

Wow... there is some real bad info in this thread. Don't take anyone's word for it here, but use google, or better yet talk to an accountant. Zach basically outlined it.

You must pay taxes on all gambling winnings. The way your taxes are computed is on your total winnings. Your losses are taken as a deduction.

Don't guess or believe what you want from this thread. If you withdraw you leave a paper trail that could get you in a mess. 10k has nothing at all to do with it.

http://www.onlinepokerfaq.com/guide/us-taxes.html
http://www.taxabletalk.com/posts/1198018566.shtml
And especially this. ^^^^

"I hear" and "I guess" don't cut it with the IRS. Do the right thing and get some official info.
 
B

Blackout09

Visionary
WRONG WRONG WRONG!!!!!

If you are a US citizen you have to report ALL winnings. Yes-even $1.00. It does not matter if you withdraw or not. As long as you won it and have access to it you must report it in the year won.

DURRRRACELL- First-any transaction of $10000- banks,casino ect must report it to the IRS but if you intentionally try to avoid it by taking 5000 then doing another 5000 that itself is against the law. This is why you should take just one big withdrawal and report it once. Even if you do report it on your tax form you can still get yourself in trouble by doing it in 5000 intervals. Second-the IRS and banks do audit deposits and withdrawals under 10000. Do not kid yourself that they don't.

OP-get a tax pro to do your taxes next year and report it or your asking for trouble if they ever aduit you.


So you are saying if I won $1 dollar on a tourney i have to report it? Even though i cant withdraw it yet, since i Dont have the minimum amount to withdraw any cash yet?
 
D

DrakeM

Enthusiast
So many different views on a single question.

The only thing I know about this is that the U.S. go pretty hard on people if they dont pay their taxes, so you should definitely ask a legal expert about this.
 
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