Tax for US online poker player

Hi all,

I have question about tax for US online poker player. How much do US players have to pay (like 30%,35%...)? I heard that online poker is illegal in US. I am confused now.


Thanks,
Thang

I'm by far no expert on this topic but a few thoughts on your question..


First are you playing as a full time poker player?

If you are playing full time then there are all kinds of ways you can file your taxes. Consult a tax expert for further details.

If you are not playing as a pro then anything you withdraw should be claimed on that years taxes.. So some will tell you that you need to deduct at the highest level with the Fed being 35% right now and whatever your state tax is. Others will say that it all depends on how much you make for that year and if you meet the given tax threshold. Casinos in the U.S now hold I think 20% on anything over 5k (this might be 10k) and have you fill out a tax form on the spot..

Legality of online poker?

Good question..lol From what I understand, as of right now the only thing illegal is the process of U.S. banks sending money from the U.S. to online poker sites. it is not illegal to withdraw money as long as you claim the money on your taxes.. However I believe this is all about to change. It appears that sometime next year itwill be illegal to withdraw money through a U.S. bank..

I hope I was somewhat helpful and remotely accurate on my response.. If anyone else knows all the facts please update us all..


Here is an interesting read on the subject that might be helpful..

Tax Aspects of Online Gambling

This is a difficult issue that should be addressed by a tax attorney well versed in US Federal and State tax laws. In many states on-line poker is illegal (either expressly or indirectly through their respective gaming/gambling laws) and many types of monetary transactions could offend the federal laws.

About the only thing that is not jurisdiction and circumstance specific is where your total losses exceed your profits and you have kept some sort of session records, then you most likely do not have taxable income (tax designated pros can most likely also count expenses against winnings).

Good luck.

Quote:

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Originally Posted by Galactus X

It appears that sometime next year itwill be illegal to withdraw money through a U.S. bank..

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Damn congress and their last minute desperation acts/laws...WTF?! Hopefully Obama will cause CHANGE!...im pretty sure he is accepting of poker as a skill game (sorry had to say changeeee)

Why would I want to pay taxes on my poker earnings so that the government can give my hard earned money to poorly run automotive and financial compainies :D