The Reality of US Taxes

[lousypanda]

Before I start, I’d like to say, I understand there is a legal obligation to pay taxes on income earned from gambling. There is no reason to comment if that is your viewpoint, that is common sense and understood.

So my question is, are people cashing out from unsanctioned poker sites such as ACR or Bet Online actually paying taxes?

I know that approved and regulated US sites such as 888, wsop, and pokerstars report winnings to the government as is required by state and federal regulations. However, the unregulated sites are already violating laws by operating in the US without licenses to do so. Therefore, it is not likely they are reporting players earnings at year-end. Clearly, they would prefer to stay under the radar.

I personally don’t benefit from this loophole since I’m a losing player but for those cashing in big tournaments, I imagine they’re keeping 100%. Is my logic flawed?

 

[onione6ix]

You should speak to a lawyer. When you stand before judge you will wish you consulted real legal counsel. This is a forum about poker . Not about taxes, talk to an accountant. I might come off harsh, but this is sound advice.

 

[lousypanda]

You should speak to a lawyer. When you stand before judge you will wish you consulted real legal counsel. This is a forum about poker . Not about taxes, talk to an accountant. I might come off harsh, but this is sound advice.

You clearly have difficulty reading. I’m not asking for advice, as I had already clearly stated that I’m a losing player. I never profit.

Additionally, I never asked for tax advise. My questions were about what unregulated poker sites are doing about taxation and what players think others are doing about it.

Lastly, this site is for all things related to poker, that includes the aftermath of winning big. If you took a moment to look through the forum, you’d find plenty of tax related threads when related to poker. Some are actually asking for advice. You should go be rude over there. Again, I am not asking for advice.

 

[Debi]

You should speak to a lawyer. When you stand before judge you will wish you consulted real legal counsel. This is a forum about poker . Not about taxes, talk to an accountant. I might come off harsh, but this is sound advice.

His question is related to poker and it a perfectly legitimate one.

 

[Jillychemung]

So my question is, are people cashing out from unsanctioned poker sites such as ACR or Bet Online actually paying taxes?

I personally don’t benefit from this loophole since I’m a losing player but for those cashing in big tournaments, I imagine they’re keeping 100%. Is my logic flawed?

I would say that 90%+ are not filing taxes (that is for the players cashing out of sites that don't report to US taxing authorities). The issue only really comes about if you get audited or are in a situation where your banking records are examined. Explaining a large deposit to your bank account may be problematic.

If you think that you'll ever have to make this decision, I hope that you have been keeping detailed records and consult with a gambling knowledgeable CPA concerning your taxes.

 

[akufto]

I do not know how much and what tax to pay in the United States to win at poker at pokerstars, but I can say that in Belarus 13% I paid to the tax from winning + the bank took its interest for the service

 

[Lazerx]

taxes

His question is related to poker and it a perfectly legitimate one.

glad i live in canada...not that i ever win big..if you have to pay taxes on winning shouldnt you be allowed to write off losses

 

[Jillychemung]

if you have to pay taxes on winning shouldnt you be allowed to write off losses

In the US you can take losses off your winnings. That's why you need to keep detailed records.