1. I know that there's a Q&A about this on the site, but it seems like that it's for the people that play higher than 5c/10c :-). I'm taking my money off the poker sites and I was wondering if, and how I claim my winnings. I took off about $600 from poker stars and $200 from Full Tilt, both via a check. Will I need to claim both of these winnings, and if so what is the tax rate, same as sales tax? Thanks
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  2. i believe you only have to report $1200 or more in winnings{and thats at one time}....your cool, no worries
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  3. ^^why would you post something that is totally wrong?
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  4. ^^ Why would you just tell him he's wrong without adding the correct answer ?????

    Yes from what I understand you need to report all winnings and losses from gambling. Your losses can offset your winnings - but all wins and losses should be reported. Even if you end the year at net zero, you would still need to report your winnings and loses throughout the year.

    There is a lot of good info on this site and others about taxes but you should prob talk to an acct to be safe.
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  5. OK I am a CPA so I can answer with some authority here.

    As a US Citizen you are taxed on your worldwide income. So this is taxable. In fact, it would be taxable whether you pulled it out of the site or not. Your winnings for the year are taxable and will be included on your 1040.

    The tax rate will depend on all of your other income and deductions. Hard to say but federal tax rates run between 5% and up over 30%. So there is no exact answer on the rate.

    Bottom line is it is taxable and you will pay tax based on the tax rate applied to you.
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  6. ^^ because the question is so misguided where would you start?

    I was wondering if, and how I claim my winnings.
    Generally on your 1040 form, you might need schedule C.
    (think the OP has any comprehension of that?)

    I took off about $600 from poker stars and $200 from Full Tilt, both via a check.
    Ok, so far ...

    Will I need to claim both of these winnings,
    Yes, why would you think you would have to claim one and not the other, or why wouldn't you have to claim income?

    and if so what is the tax rate,
    Since 1913, the U.S. has had a graduated income tax, there is not ONE rate.

    same as sales tax?
    No, nothing like it. Christ, have you ever had a job? Never paid taxes before in your life? How old are you?

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  7. same as sales tax?
    No, nothing like it. Christ, have you ever had a job? Never paid taxes before in your life? How old are you?

    Everyone's gotta start somewhere. At least he's trying to do the right thing.
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  8. ted forrest is just an angry man that enjoys posting to get his anger and stupidity out. He rarely provides anything of actual substance and usually just starts banter wars.
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  9. just out of curiousity, if you deposited $500 on a poker site and then realized it would be better to use that money to putting food on the table and withdrew it without playing 1 game, would that have to be reported?
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  10. Man I am screwed on taxes. I have the worst records ever. I am not a pro, but it does supplement life now that I am back in college. tell the truth I have no idea the exact amount I have won or lost. How much trouble can you get into for quesstimating (how you like that, a made up word misspelled). Just wondering, also have live and online winnings and loses, 90% is cash games. Best part is my wife is an accountant and she is useless for tax purposes.
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  12. tell that to Al Capone
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  13. since all the sites are out of the country wouldnt up to 70k be exempt. is it not the same as owning foreign investments or a business overseas?
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  14. Ok here is probably a stupid question. What does it mean by poker losses? Does that just mean all your buy ins or what?
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  15. ^^^^^^ Are u serious? A 1040 is your INCOME TAX FORM. On it, you state your income, deductions and credits to which you then get your taxable income and then your applicable tax liability based on your tax rate. Sure if you have no income you won't pay any income tax. But honestly, what you basically just said is completely flawed. You seriously have to be a complete waste of space to report $0 income unless you are under the age of 18 (even then if you have a checking account you will have interest income), if you are unemployed (which if you are receiving unemployment compensation it is taxable) or if you are comitting tax evasion or tax fraud.
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  16. No you wouldnt. Its basically the same thing as taking $500 and putting into a box and then taking it out of the box a day later. No money was earned or lost.
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  17. No this has nothing to do with it. US citizens are taxed on their worldwide income, period. I think what you are referring to is the foreign earned income exclusion. That is only relevant if you live overseas for a certain number of days. But if you reside in the US the exclusion is not relevant.
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  18. Yes buy-ins, losses in CG, etc.
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  19. you are taxed based on winnings, it makes no difference how much is left over in your poker accounts or how much you remove. If you won 3 tournaments for $5,000 in total profits, you would owe taxes based on $5,000 in gross income. It is HIGHLY UNLIKELY that someone like you can deduct losses since you need to be considered as a poker professional, not as a hobby, and you need to have enough other deductions to have this make any sense at all (mortgage interest, state income tax paid, property taxes paid, charitable gifts etc.) Even if you win a satellite into a tourney, you owe tax on the value of the seat , whether or not you play in the tourney, and regardless of whether you bust out for no cash.
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  20. well, apparently i need to fire my accountant, and I guess Im f***ed for this tax season. Thanx Ted, you'll be the first person i call when the IRS comes knockin at my door
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  21. if you win a satellite, and do not play in it by end of year then i believe you need to pay taxes on it. But if you win a 12k package, then lose 10k playing in a tourney you can deduct the 10k from the 12k resulting in the 2k you won extra for travel and room. The problem arises when for example you win a PCA seat...you need to pay taxes on that 12k package for 2007, and if you lose you will be able to deduct that from 2008s winnings.

    Also I think you're confusing losses with expenses. Any poker player can deduct their losses from their wins to get their net profit for the year.

    Only professionals are allowed to deduct expenses such as flights, hotel rooms, meals, parking, etc.....

    I am not a cpa but I believe this is correct
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  22. See IRS website re these bogus claims. The federal government has defeated these claims in every case taken to tax court. Please don't give credence to them by posting this nonsense.
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  23. Losses may be deductible (if you itemize) but are subject to the 2% misc. rule which basically states that the first 2% of your adjusted gross income would not count toward offsetting your winnings. Example - You earn $100,000 AGI in 2007. Of that amount, you won $5,000 playing poker. You have gaming losses of $3,000 during the year as well. You would pay tax on $4,000 of the poker winnings. Wins (5000) subtracted from allowable losses you can deduct (3000 minus 2000).

    Keep in mind that all gambling wins and losses need to be included, not just poker wins and losses. If you are audited then you will have to provide documents to establish the numbers that you use (win/loss statements from casinos, receipts from tournament buyins). Engage a good CPA if you have any amount of significant winnings. Better to pay a CPA now than a criminal defense attorney later. The CPA will be much less expensive.

    This post applies to US citizens only of course.
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  24. WRONG

    I am a CFP. Unless you are itemizing deductions and classify yourself as a professional poker player, YOU MAY NOT DEDUCT LOSSES TO NET OUT WINNINGS. Let me say that again. You cannot deduct losses from winnings and just pay taxes on the net profit. Even if you are a professional, you still pay taxes on Schedule C based on total winnings. You then can POSSIBLY get some deduction for poker losses, but thanks to "read my lips no new taxes promise of President Bush the first in 1988", your deductions can be limited. Certainly a person with modest income and expenses will NOT be able to make use of this deduction anyway.

    I know this is shocking to many players, but this is how the US tax system works.

    For example, during the year you play in 2000 $30 sngs and suppose you come in 1st 300 times, 2nd 200 times and 3ed 500 times. (yes this means you played well)

    your winnings would be approx 30,000 from the 1sts, $10,000 from 2nds, and $6,000 from 3rds or about $46k in winnings. If this is all you played, you would report $46k in gross income, and if you dont itemize, you would get the standard deduction. The 1000 sngs in which you failed to cash, even though you lost $33,000 in those do NOT net out against your winnings.

    you pay taxes on the 46k.

    IF you are a professional, and it makes sense to itemize, you certainly can apply the losses towards your deduction. I am sure you would be shocked to find out that your taxes are still much much higher than if you could NET out wins vs losses, but that is against the law.
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  25. Hey Flex (or any tax-savy individual)

    Does poker fall in the same category as sports gambling...for example...

    Say I'm up a bunch in poker and....oh, I don't know...Down a bunch from sports gambling...does that income fall in the same "misc" income and cancel each other out....or does the gov't only care about the profits....
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  26. nevermind...appears the post directly above me answers this question...

    I'm moving to Europe....
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  27. Under what circumstances with your above example would you NOT itemize?
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  28. LOL @ people who do actually know the tax law, but choose to display their knowledge in an ignorant manner. If the guy is asking seriously how to treat his winnings, then he doesnt know. Dont be a fucking asshole.
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  29. <span>This is not right at all.</span> Gambling loss rules allow you to itemize (to the extent of winnings). If you qualify as a professional you would reconcile all of your expenses, etc. on Sch C not on the itemized.

    I am a CPA (and a CFP) and my firm prepares over 500 returns a year including some poker players. Your advice is completely wrong.

    Ypu are correct in reference to the satellite issue.
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  30. wut about subscribing to cardplayer at the end of the yr just so you can see total wins and total losses on buy ins and just putting the net # of that on your 1040? (considering you played very little to no cash games)????
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