When you chop, are you taxed?

[Pokerstudy]

As much as I love learning about poker, and feel I know a bit about the game (as it is the most complicated game in the universe) and can never really be mastered. I am a complete novice when it comes to financials.

Many times (I shouldn't say many, I would say like 15 times or so) when I have chopped, they are always looking for someone to sign, being the friendly guy I am I sign, but am I setting myself up for tax issues? I understand that there is something about a certain amount to where you are not taxed, but that can fluctuate right? Who knows if whatever rule or law holds true day by day.

Do you sign at chops? Why would you avoid it? Cash in hand rocks, but should you sign for it?

Also, not to do a PSA, but TIP THE DEALERS WELL!

Thanks CC

BTW the reason I ask about chops is I play rec games, and every, and I mean every single tourney at the rec level has turned into a chop that I have played.

 

[takinitSLEAZEE]

Yeah man, the last 4 tables I made when we got to 6 players we chopped it in some way. A couple times it was because we'd been playing for almost 10 hours and were just done.
We get taxed here after making over $5K, if I'm not mistaken.

 

[dannystanks]

In Vegas if you make 5k over the buy in you get taxed.

 

[Pokerpoet2]

It all depends on which Country you are playing the Tournament in and which Country you live in. They all have their own Tax Laws that have to be observed and you could find you could end up paying Tax in both.

 

[Debi]

I have chopped plenty of times - just make sure you are not signing for the entire amount. I only sign for what I actually get and only that is taxable.

 

[Emily Trott]

The only two places where I've played and have chopped are Foxwoods in CT and Filotimo in NH. At both it is handled by giving each player, respectively, a voucher to cash at the cage, or a check that the tournament director cashes immediately for you. It doesn't seem right for one person to take on the entire tax liability.

 

[Jillychemung]

Yes some casinos/poker rooms do not facilitate chops between players so the chop negotiations can get messy if the amounts are in the taxable range (speaking of USA based).

 

[Pokerstudy]

The only two places where I've played and have chopped are Foxwoods in CT and Filotimo in NH. At both it is a handled by giving each player, respectively, a voucher to cash at the cage, or a check that the tournament direct cashes immediately for you. It doesn't seem right for one person to take on the entire tax liability.

I’m steering away from chops, and not to sound like a jerk or whatever, but to me it feels like favors for strangers, at this point, if I lose out cool, but I’m just not with chopping. I’d rather go home broke than chop at this point.. but then again like @takinitSLEAZEE said, the tournaments can go on forever and just want to cut out, I initiated a chop at MGM at a midnight tournament (turbo of all things) that lasted until 4am (maybe 3, don’t remember) it’s just late, and stupid to play that late ⏰ (my fault for sure) . I guess you can say it’s my own fault for playing that late where a chop looks extra great…but irregardless, I just seem to always regret a chop later, anytime of day at any tourney.

Just my initial reaction lately…

Then when you see three sign marks for a 6 way chop, it always double bothers me, (don’t remember the exact tournaments I seen this, but I have) why did I sign and others not? Again, I am a novice at financials and learning as I go when it even comes to money at this game.