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journey075
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08-02-2005, 08:30 AM
Post subject: Taxes on Online Ring...
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#1 (permalink)
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Full House
Join Date: Mar 2005
Posts: 725
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at what point do you think it is necessary to pay taxes on online winnings? i assume if you made 1k in a year its unnecessary to pay taxes. 5k? 10k? 20k?
do you all pay taxes on your winnings? what if you dont use neteller? what if some of your "income" is from bonuses?
this seems extremely confusing, i know if you win a big tourney its appropriate to pay taxes, but im not sure how to go about with ring. also if a lot of profits are made at live games, is it necessary to declare that?
thanks.
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Pingviini
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Full House
Join Date: Feb 2005
Location: Bangkok
Posts: 1,090
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If you live in an EU country you dont have to pay taxes from your winnings from EU sites (gibraltar included).
You are probably talking about USA though..
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"Poker is a simple math game" -Aba20
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Sed
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08-02-2005, 01:22 PM
Post subject: Re: Taxes on Online Ring...
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#3 (permalink)
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Full House
Join Date: Sep 2004
Location: Wastin' away again in margaritaville....
Posts: 1,102
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Quote:
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Originally Posted by journey075
at what point do you think it is necessary to pay taxes on online winnings? i assume if you made 1k in a year its unnecessary to pay taxes. 5k? 10k? 20k?
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depends on your tolerance for risk... legally, in the US, you should pay it on anything and everything. With the patriot act and the possibility of money laundering through poker sites, I would be very suprised if the government isn't paying attention.
On a related note, do you guys pay quarterly estimates or just pay it all in April?
- sed
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No fear, go deep or go home!
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alias2211
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Flush
Join Date: Mar 2005
Location: U, S and A!!!
Posts: 469
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here is a link to a BankRate.com article on gambling earnings:
http://www.bankrate.com/brm/itax/tips/20010131a.asp
it includes links to applicable official IRS forms (the ones available online anyway)
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edudlive
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Full House
Join Date: Jul 2005
Location: 100NL 6max
Posts: 623
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As long as you don't cash it out, you don't have to pay taxes on it (kinda like keeping it in an offshore bank account  ), then just cash it out it out in small parts.
If your gambling earnings = <20% of your yearly income, you don't have to report it (yeah you're supposed to report every dime you make, but thye let up to 20% of your income for gambling slide, then you're considered a professional poker player)
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journey075
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Full House
Join Date: Mar 2005
Posts: 725
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so if i dont have a job (still in college) i gotta report winnings?
how big is the first income bracket? 25k? 40k? i really dont want to pay more than 10%...
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boost
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Full House
Join Date: Mar 2005
Location: Chicago
Posts: 706
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what Im doing right now is just taking out lil bits to spend on things, when My br grows I think Ill worry about it then. I think if yer bringing in like 10k a year youll be fine...
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koolmoe
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08-02-2005, 11:01 PM
Post subject: Re: Taxes on Online Ring...
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#8 (permalink)
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Full House
Join Date: Jun 2004
Location: Drowning in prosperity
Posts: 1,279
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Quote:
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Originally Posted by sed
On a related note, do you guys pay quarterly estimates or just pay it all in April?
- sed
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Unless you can increase withholding at your regular job, it is wise to make quarterly payments. Significant poker income (as little as $5000) will definitely increase your exposure to penalties.
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Poker is freedom
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fubarcdn
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Join Date: Jul 2005
Location: Toronto Canada
Posts: 2
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All gambling winnings in Canada are tax exempt but you can be sure they find other ways to get most of our money.
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nomofoshobro
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Straight
Join Date: May 2005
Location: HOG HEAVEN
Posts: 130
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Quote:
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Originally Posted by edudlive
If your gambling earnings = <20% of your yearly income, you don't have to report it (yeah you're supposed to report every dime you make, but thye let up to 20% of your income for gambling slide, then you're considered a professional poker player)
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do you work for "them" and have some inside information? assuming that "they" are the IRS, i would question the notion that they are nonchalant regarding even the smallest amount of taxable income. case in point......this is directly from the IRS website and is in the same section that includes information about gambling winnings:
Bribes. If you receive a bribe, include it in your income.
Illegal Income. Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
i wish i was so gifted comedically that i could make up something this ironically hilarious, but i am not. this link proves that.
i am also not sure if the IRS classifies poker as gambling, especially since there is a distinction in some states between poker and games of chance. However, after reading the above publication, i would bet my bankroll that you can be held responsible for ANY income that you don't report, that is, if they can prove it.
that reminds me, one of my whores stole some money from me that i made from selling crack. do you guys think that is deductable?
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ensign_lee
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4-of-a-Kind
Join Date: Feb 2005
Location: The University of TEXAS at Austin
Posts: 2,237
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Well, the reason that they say that on the IRS site is because they want an accurate count of hte GDP. I mean, you gotta remember, your tax income form CANNOT be used as evidence against you should you eer be indigted for doing illegal activities.
So say you made $100,000 last year selling crack. If you don't report it, that's just another charge to tack on when the police catch you. If you do file it, however, the police can't use your income tax report to put you away, saying "look: he even admitted to the US government that he sells crack".
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nomofoshobro
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Straight
Join Date: May 2005
Location: HOG HEAVEN
Posts: 130
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Quote:
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Originally Posted by ensign_lee
Well, the reason that they say that on the IRS site is because they want an accurate count of hte GDP.
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and here i was thinking it was because they wanted to tax it.
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