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Percival
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08-30-2007, 11:29 PM
Post subject: Tax percentage
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#1 (permalink)
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Join Date: Nov 2006
Posts: 47
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Can anyone tell me approximately how much poker winnings are taxed? I had not planned on claiming my winnings for this year since they were small, and I was just building my bankroll. There have been some changes recently though (divorce and medical bills), that have forced me to play seriously, win consistently, and withdraw funds.
On a side note, it's funny how much needing the money will change the way you play. Instead of playing barely above break even poker for fun, as I have so far this year, I have recently taken it seriously as a source of income. I have made more in the past two months than I have in the previous 8 combined. In fact, I have made five times more in the past two months than the previous 8. If I have the time I may post a separate topic on this to help those new to the game.
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poker_pup
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Straight
Join Date: Apr 2007
Posts: 130
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I believe poker winnings are taxed at your normal marginal rate.
I'd be interested to know what insights you've picked up since you started taking poker more serious.
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bode
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Straight Flush
Join Date: May 2006
Location: slow motion
Posts: 4,270
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its taxed like any other income you have, depending on what tax bracket you fall under.
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Quote:
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eeevees are not monies yet...they are like baby monies.
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Aces
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Full House
Join Date: Mar 2004
Posts: 832
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I think it can go both ways and depends on the individual...depending on poker for income can make you play scared/worse if you don't have the stomach and BR for it.
Also since with taxes you cannot total your wins and losses your net wins can add up and make you hit the AMT(alternative minimum tax) threshold, which would increase your overall rate(assuming you don't declare yourself a professional).
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Jibalob
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Flush
Join Date: May 2007
Location: Out of my roll
Posts: 512
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OMFG you guys have to pay tax on your poker winnings? Do you get relief for losses if you lose?
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PLEASE READ ULTIMATE BET THREAD IN "ONLINE POKER ROOMS" FORUM
Wait, this is .05/.10 and you got sexied, I can't believe that shit, limit must really be dying.[/quote]
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Aces
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Full House
Join Date: Mar 2004
Posts: 832
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Quote:
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Originally Posted by Jibalob
OMFG you guys have to pay tax on your poker winnings? Do you get relief for losses if you lose?
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{Assuming this is not sarcasm}
Unless you file as a professional, your poker income is added to your income and your losses are deducted somewhere else. If the income puts you above the AMT, you can actually end up paying taxes while LOSING monies.
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Jibalob
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Flush
Join Date: May 2007
Location: Out of my roll
Posts: 512
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Quote:
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Originally Posted by Aces
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Originally Posted by Jibalob
OMFG you guys have to pay tax on your poker winnings? Do you get relief for losses if you lose?
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{Assuming this is not sarcasm}
Unless you file as a professional, your poker income is added to your income and your losses are deducted somewhere else. If the income puts you above the AMT, you can actually end up paying taxes while LOSING monies. |
No sarcasm bud, that is sick as Fu(k
Where I live income from any form of gambling is tax emempt
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PLEASE READ ULTIMATE BET THREAD IN "ONLINE POKER ROOMS" FORUM
Wait, this is .05/.10 and you got sexied, I can't believe that shit, limit must really be dying.[/quote]
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Dashi
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Join Date: Aug 2007
Posts: 46
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In Canada the tax laws regarding this are interesting. By the books, proceeds are tax exempt, UNLESS the winnings are your primary source of income. But in order to prove they are your primary source of income, they have to prove it's a reliable source of income. Which would be difficult at best. Now factor in that Gambling is a recognized addiction. This is where I start to giggle.
If I EVER am audited and hauled into court to pay taxes on my poker winnings, my defense will be perfect and pretty much undeniable.
"Your Honor, thank you for bringing me here today. I have long stuggled with this horrible addiction. I can't work, Most days I don't even get dressed, I feel as if I'm letting everyone around me down by playing all day everyday. I need help. My family is suffering and want their dad back."
I love to see what they do with that. Which brings up the interesting point that the only real difference between a gambling addict and a professional poker player, is the size of the bank roll.
How can you tax someone if they are by most of society's definition, lucky, and at the same time, if they aren't lucky send them to rehab.
Abusing people's ignorance is the spice of life.
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Jack Sawyer
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4-of-a-Kind
Join Date: Jan 2007
Location: Old School
Posts: 2,535
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Quote:
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Originally Posted by Jibalob
Where I live income from any form of gambling is tax emempt
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Me too, Jibalob.
Where do you live?
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sejje
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Full House
Join Date: Mar 2005
Posts: 883
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Quote:
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Originally Posted by Dashi
Which brings up the interesting point that the only real difference between a gambling addict and a professional poker player, is the size of the bank roll.
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And the fact that the pro player is a winner. And the fact that gambling doesn't disrupt the pros life, rather his life is staged around it. And the fact that he doesn't have another job. And the fact that if things got bad enough, many pros (the ones who are not gambling addicts) could step back, take another job, and quit gambling with money they couldn't afford to lose.
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Jibalob
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Flush
Join Date: May 2007
Location: Out of my roll
Posts: 512
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Quote:
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Originally Posted by Jack Sawyer
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Originally Posted by Jibalob
Where I live income from any form of gambling is tax emempt
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Me too, Jibalob.
Where do you live? |
The Isle of Man (ok... so its a bit of a tax haven  ) but its the same in the UK too. You could win the WSOP main event and win a few million on the lottery in the same day and not have to pay a penny of tax on it.
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PLEASE READ ULTIMATE BET THREAD IN "ONLINE POKER ROOMS" FORUM
Wait, this is .05/.10 and you got sexied, I can't believe that shit, limit must really be dying.[/quote]
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Percival
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Join Date: Nov 2006
Posts: 47
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Currently I plan on only claiming what I withdraw, and not what I leave in my account. I won't be leaving too much in my account though so if it catches up with me I won't be penalized too much. I also plan on only claiming what I am up...not how much I win in one place and how much I lose in another. This is assuming that I keep at my current win amount which is about $700 per week.
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"If I am in the impossible business, and I am, then I want to go beyond the impossible." David Copperfield
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Black Sheep
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Straight
Join Date: Mar 2007
Location: Kalmar, Sweden
Posts: 133
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Well, here is Sweden you are supposed to tax 30% of your winnings if the pokerroom aint licensed in Europe.
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drtofu66
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Flush
Join Date: Apr 2005
Posts: 595
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Quote:
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Originally Posted by sejje
Quote:
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Originally Posted by Dashi
Which brings up the interesting point that the only real difference between a gambling addict and a professional poker player, is the size of the bank roll.
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And the fact that the pro player is a winner. And the fact that gambling doesn't disrupt the pros life, rather his life is staged around it. And the fact that he doesn't have another job. And the fact that if things got bad enough, many pros (the ones who are not gambling addicts) could step back, take another job, and quit gambling with money they couldn't afford to lose. |
Mark Gregorich (I think that's his name) has a section on the World Poker Players Conference 2004 DVD about playing as a pro.
He made a point about poker not having a dental plan and health insurance and yes, you can play when you want but when you're not playing you aren't earning any money (and obviously there's no guarantee that you'll earn money during a certain session). I imagine that's tough having that pressure to NEED to win in order to pay rent and for food (and I hope NEVER to have to rely on my scant poker skills to survive. It wouldn't be for long). Prolonged gaps in your resume don't help and can compound the difficulty in getting a job later if poker doesn't pan out.
Fnord points this out when he posted about transitioning from playing poker for a living and getting his job. I'm not sure how long he played professionally, though. Doesn't seem like it was for long.
http://www.flopturnriver.com/phpBB2/...l+poker+player
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sejje
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Full House
Join Date: Mar 2005
Posts: 883
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Quote:
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Originally Posted by Percival
Currently I plan on only claiming what I withdraw, and not what I leave in my account.
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That doesn't work. At least, it doesn't make you legal. It depends on when you won it, not when you cashed it out.
Quote:
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Originally Posted by Percival
I also plan on only claiming what I am up...not how much I win in one place and how much I lose in another.
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That also doesn't work. Depends on how you file (pro or not), but you have to report all wins and all losses against each other. You can't just enter "x" amount.
At least, that's how I understand it from studying it a little bit. Hop over to 2p2 and look around, they have plenty of threads with advice from qualified people.
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humpday
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Join Date: Sep 2007
Posts: 9
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2% like my milkkkkk
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