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henderson
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07-21-2010, 06:05 AM
Post subject: Do I have to Report Winnings for Tax Purposes?
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#1 (permalink)
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High Card
Join Date: Jul 2010
Posts: 1
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Hello everyone, I play on Full Tilt and I've started winning a
decent amount of money and I was just wondering if I have to report
winnings eventually if I start winning a lot.
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JKDS
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Full House
Join Date: Feb 2008
Location: Chandler, AZ
Posts: 1,024
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Where do you live?
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Quote:
Originally Posted by OngBonga
But no, jkds is lolvillager and anyone who wants to string him up is sighbad.
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supa
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Full House
Join Date: Feb 2010
Posts: 985
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Excercising my 5th amendment rights.
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“Right thoughts produce right actions and right actions produce work which will be a material reflection for others to see of the serenity at the center of it all”
Put hero on a goddamn range part II- The 6max years
Quote:
Originally Posted by d0zer
start using your brain more and vagina less
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kiwiMark
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Join Date: Jul 2009
Location: Nu Zuland bru
Posts: 939
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Hi, I work for the internal revenue of departments and I'll be happy to take 17% of your winnings into the pokerstars account kiwilandMark on behalf of my boss prime minister obama.
Cordially yours,
Shakeel Al-Mahoozi
Your case ID is 00110010001010101001101110101001010101, please do not reply to this email.
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nice_aiau
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Flush
Join Date: Apr 2008
Location: Dunedin, New Zealand
Posts: 260
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Quote:
Originally Posted by kiwiMark
Hi, I work for the internal revenue of departments and I'll be happy to take 17% of your winnings into the pokerstars account kiwilandMark on behalf of my boss prime minister obama.
Cordially yours,
Shakeel Al-Mahoozi
Your case ID is 00110010001010101001101110101001010101, please do not reply to this email. |
Lol Mark, do you know anything about nz taxing from a serious perspective?
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JKDS
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Full House
Join Date: Feb 2008
Location: Chandler, AZ
Posts: 1,024
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Quote:
Originally Posted by supahaole
Excercising my 5th amendment rights.
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You aint sullivan
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Quote:
Originally Posted by OngBonga
But no, jkds is lolvillager and anyone who wants to string him up is sighbad.
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kiwiMark
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Join Date: Jul 2009
Location: Nu Zuland bru
Posts: 939
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Quote:
Originally Posted by nice_aiau
Lol Mark, do you know anything about nz taxing from a serious perspective?
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Daven informs me that he can't get a clear cut answer out of IRD, but that it seems we're like Aus and the UK, whereby poker winnings aren't taxable. So I pretty much plan on just winging it, while before I'm robusto anyway.
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kidsoldja
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Two Pair
Join Date: May 2010
Posts: 34
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In Canada you dont..i dont know about any other country
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nice_aiau
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Flush
Join Date: Apr 2008
Location: Dunedin, New Zealand
Posts: 260
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Quote:
Originally Posted by kiwiMark
Daven informs me that he can't get a clear cut answer out of IRD, but that it seems we're like Aus and the UK, whereby poker winnings aren't taxable. So I pretty much plan on just winging it, while before I'm robusto anyway.
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Sweet as
+1
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spoonitnow
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Straight Flush
Join Date: Sep 2005
Location: IRC Chat Room
Posts: 5,406
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If you're from the United States, yes.
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Quote:
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Originally Posted by Ripptyde
I only have 2 simple rules when I am coaching a new student.
Rule # 1: don't ask questions
Rule # 2: don't ask questions
I have no interest in discussing strategy with a protege'. Your job is to remain quiet and listen. I have a very systematic approach that I will share with the right candidate and I promise that I will turn you into a force of nature and show you elements of the game of poker that you never knew existed.
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Icanhastreebet
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Full House
Join Date: Dec 2009
Location: In the big blind, cold calling your opens, making you tilt.
Posts: 994
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Quote:
Originally Posted by kidsoldja
In Canada you dont..i dont know about any other country
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wat
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NightGizmo
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Flush
Join Date: May 2010
Posts: 268
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I looked into it a while back, out of curiosity (for US citizens). I don't remember the specifics, but basically:
- If you win more than a certain dollar amount in a tax year, you have to claim the income on your return.
- You need to be able to document your wins/losses for each session (ie, "On July 9th, I won $200 at FTP. On July 10th, I lost $50 at FTP"). I forget how detailed this needs to be -- like if they expect times and such. But they do expect you to document where you played.
- Sessions are not defined for online games -- they are traditionally at a live table, so there is no standard for deciding whether to lump all of your tables together if you multi-table. But I think it's safe to consider a "session" online to include all of your tables during that time period.
- If you are not a gambling professional (there are specific criteria in the tax code for this), you must claim wins as income and your losses as deductions. This can have tax implications, making your alternative minimum taxes higher than normal.
- If you ARE a gambling professional, the rules are different -- I think you can combine the wins and losses into a schedule C (avoids the alt min tax issue facing non-pros).
- I have no idea how rakeback is factored into the equation.
** I'm not a tax professional. Talk to an accountant.
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Penneywize
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Full House
Join Date: Jan 2005
Posts: 885
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Quote:
Originally Posted by kidsoldja
In Canada you dont..i dont know about any other country
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This is true only if it is not your primary source of income.
You are also exempt if you happened to have won a large, one-time prize, say if you won the sunday million tourney for $250k or whatever, and your day-job pays you 30k. So long as it is not a consistent income.
If you play poker and have a part-time job, but earn more from playing poker, you're a pro and have to pay taxes on your winnings.
Anyhow, this is what my GF tells me; she's studying to become a C.A. so don't take any of this as written in stone.
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StarGrinder
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Full House
Join Date: Jul 2010
Location: UTG (aka USA)
Posts: 683
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This is probably a really dumb question, but you only get taxed on what you withdraw, not what you win, correct?
If this is true, let's say you've built up a $100k roll but have never made a withdraw. Conceivably one could move to a country where taxes are minimal or non-existent in terms of poker winnings then withdraw the full amount with less of a chunk to Uncle whoever. Meh?
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NightGizmo
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Flush
Join Date: May 2010
Posts: 268
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Quote:
Originally Posted by StarGrinder
This is probably a really dumb question, but you only get taxed on what you withdraw, not what you win, correct?
If this is true, let's say you've built up a $100k roll but have never made a withdraw. Conceivably one could move to a country where taxes are minimal or non-existent in terms of poker winnings then withdraw the full amount with less of a chunk to Uncle whoever. Meh?
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I doubt this is true. Consider the stock market -- if you make $100K on stocks (actual cash -- not paper gains) but never withdraw the money from your brokerage account, will the IRS expect you to pay them for the gains? You betcha.
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StarGrinder
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Full House
Join Date: Jul 2010
Location: UTG (aka USA)
Posts: 683
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I didn't think so, but thought I'd stir the pot. However, it doesn't make any sense that you'd be taxed on winnings you haven't received yet (i.e. made a withdraw). If that were the case, I'd owe back taxes the past 2 years, since I've only deposited $50 total and donked my way to ~30x that, never making a withdraw. And according to PT3/HEM records, those are winnings and losses, regardless of withdrawals. You'd think I'd know this type of stuff with owning a business but that's what my account is for. 
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StarGrinder
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Full House
Join Date: Jul 2010
Location: UTG (aka USA)
Posts: 683
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Not sure if we can link to P5s, but I found a link in my bookmarks relating to this discussion.
http://www.pocketfives.com/articles/tax-qa-585513/
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drmcboy
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DrButtInski
Administrator
Join Date: Aug 2004
Posts: 9,602
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You owe the money regardless of where it is, although you're of course less likely to get caught hiding it if it's still on the site. I would not worry about $1500 over two years.
You can never net wins and losses, but the loss deduction is different if you file as a pro.
Google gambling and taxes or search the site, this post has been done over and over.
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StarGrinder
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Full House
Join Date: Jul 2010
Location: UTG (aka USA)
Posts: 683
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Quote:
Originally Posted by drmcboy
search the site, this post has been done over and over.
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Spoon... that's your queue to compile the best info and digest it. 
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spoonitnow
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Straight Flush
Join Date: Sep 2005
Location: IRC Chat Room
Posts: 5,406
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Quote:
Originally Posted by StarGrinder
This is probably a really dumb question, but you only get taxed on what you withdraw, not what you win, correct?
If this is true, let's say you've built up a $100k roll but have never made a withdraw. Conceivably one could move to a country where taxes are minimal or non-existent in terms of poker winnings then withdraw the full amount with less of a chunk to Uncle whoever. Meh?
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No. You're taxed on income earned, not income moved around. If you have over $10k in a poker account you have to fill out a form for that too.
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Quote:
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Originally Posted by Ripptyde
I only have 2 simple rules when I am coaching a new student.
Rule # 1: don't ask questions
Rule # 2: don't ask questions
I have no interest in discussing strategy with a protege'. Your job is to remain quiet and listen. I have a very systematic approach that I will share with the right candidate and I promise that I will turn you into a force of nature and show you elements of the game of poker that you never knew existed.
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daven
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Straight Flush
Join Date: Aug 2007
Location: soaking up ethanol, moving on up
Posts: 5,805
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Quote:
Originally Posted by kiwiMark
Daven informs me that he can't get a clear cut answer out of IRD, but that it seems we're like Aus and the UK, whereby poker winnings aren't taxable. So I pretty much plan on just winging it, while before I'm robusto anyway.
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there's a student here in dunnaz who is up about $1, 000, 000 on da internet pokahz - i guess we could ask him...
eetee2008 or something - or just google elliot poker dunedin
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kiwiMark
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Join Date: Jul 2009
Location: Nu Zuland bru
Posts: 939
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Huh, even a couple of mutual friends on bookface
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nice_aiau
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Flush
Join Date: Apr 2008
Location: Dunedin, New Zealand
Posts: 260
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lol 40 mutuals on bookface. Wtf?
I heard about this guy through some ladies I know but thought they were just talking shit as per usual.
but... looks like MTT multi table SNG pro(going for SNE)
offers staking/coaching in 180s etc.
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