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Quick question about poker and taxes...

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  1. johnsovva_ap johnsovva_ap is offline

    Houston, TX
    United States

    Posts: 85
    Joined: Jun 09

    Oct 20th, 2010 (10/20/2010 11:28pm)

    I know there are articles devoted to this topic, but I just have one question: Do you pay taxes based on your winnings, or your profit?
    Thanks.
     
  2. Appst08 Appst08 is offline

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    Oct 20th, 2010 (10/20/2010 11:34pm) in reply to johnsovva_ap

    it depends on if your filing as a hobby or a professional.
     
  3. johnsovva_ap johnsovva_ap is offline

    Houston, TX
    United States

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    Oct 20th, 2010 (10/20/2010 11:37pm) in reply to Appst08

    Thanks. I've probably screwed myself by cashing out way to often this year- and then putting some of that money back in everytime. O well.
     
    Thread Starter
  4. Gags30 Gags30 is offline

    Posts: 6,700
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    Oct 21st, 2010 (10/21/2010 1:13am) in reply to Appst08

     
    Originally Posted by Appst08 View Post

    it depends on if your filing as a hobby or a professional.


    this is not true.

    you always pay on your profit only. regardless of whether you are a professional or not, you can still write off losses when it comes to gambling

    actually...the best advice anyone can give you is just go to a cpa that knows what they're doing instead of trying to do it yourself. a cpa will cost you a couple hundred bucks at most, and save you a lot of headaches
    170 2 

    Gags30 is an instructor at PocketFives Training . To get more of his advice and to watch his training videos, click here.

  5. qwik2pwn qwik2pwn is offline

    Vandalia, IL
    United States

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    Oct 21st, 2010 (10/21/2010 1:19am) in reply to Gags30

    So how can you prove or write your losses live or even online?
  6. ryan beckwith ryan beckwith is offline

    Stoughton, WI
    United States

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    Oct 25th, 2010 (10/25/2010 6:39pm) in reply to qwik2pwn

    If you take poker seriously at all you need to keep detailed records. They basically have to trust you if they dont find incredible assets that you did not claim income for. You do not get proof of all wins and losses so record keeping is key. Yes you can write off any gambling loss to negate wins. The sole difference between amateur and professional is that if it is your profession you can write off expenses related to travel. If you are an amateur you do not get to write off any expenses.
     1
  7. qwik2pwn qwik2pwn is offline

    Vandalia, IL
    United States

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    Oct 25th, 2010 (10/25/2010 6:43pm) in reply to ryan beckwith

    But as an amateur you can claim wins/losses? Just not travel expenses, etc ?
  8. ryan beckwith ryan beckwith is offline

    Stoughton, WI
    United States

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    Oct 25th, 2010 (10/25/2010 6:48pm) in reply to qwik2pwn

    Yes you can claim any wins and losses. Obviously you get nothing for claiming more losses than wins. But if you win 30k and have 25k in losses you only pay taxes on 5k. Remember though keep records.
     1
  9. Passiveplay Passiveplay is offline

    Erlanger, KY
    United States

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    Oct 25th, 2010 (10/25/2010 6:54pm) in reply to ryan beckwith

    How do you keep your records? I know you can get an audit from PS but what can you do for FTP? Do you use opr or shark scope?
     
  10. OGHowie OGHowie is offline

    Tampa, FL
    United States

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    Oct 25th, 2010 (10/25/2010 6:57pm) in reply to Passiveplay

    i use thepokerdb because pretty much all i do is MTTs
    Edited By: OGHowie Oct 25th, 2010 at 06:58 PM
  11. qwik2pwn qwik2pwn is offline

    Vandalia, IL
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    Oct 25th, 2010 (10/25/2010 6:58pm) in reply to OGHowie

    Gotcha. Thanks for the info. What if you lose more than you win? lol
  12. Gags30 Gags30 is offline

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    Oct 25th, 2010 (10/25/2010 8:00pm) in reply to qwik2pwn

     
    Originally Posted by qwik2pwn View Post

    Gotcha. Thanks for the info. What if you lose more than you win? lol


    nothing...you just lost some money
    170 2 
  13. qwik2pwn qwik2pwn is offline

    Vandalia, IL
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    Oct 25th, 2010 (10/25/2010 8:03pm) in reply to Gags30

    haha good to know.
  14. Abratzzi Abratzzi is offline

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    Oct 25th, 2010 (10/25/2010 8:59pm) in reply to qwik2pwn

    From what I understand the diff between a rec player and a pro is a pro doesnt have to itemize everything and a rec player does.
  15. Gags30 Gags30 is offline

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    Oct 25th, 2010 (10/25/2010 9:04pm) in reply to Abratzzi

     
    Originally Posted by Abratzzi View Post

    From what I understand the diff between a rec player and a pro is a pro doesnt have to itemize everything and a rec player does.


    again, don't believe this to be true


    people...just go talk to a cpa and stop coming to a forum for tax advice
    170 2 
  16. m4ch1n3 m4ch1n3 is offline

    San Francisco, CA
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    Oct 26th, 2010 (10/26/2010 12:43am) in reply to Gags30

    If you're a recreational player you're supposed to report all of your winnings (not profit) on page 1 of your 1040, you can then deduct your losses on your schedule A as itemized deductions.

    If you file as a professional, you report your winnings on a Schedule C and you can deduct your losses and other expenses relating to poker (Travel, internet etc). You do have to pay self employment taxes if you file as a professional.

    -Edit-

    This is basically your answer in a nutshell, for specifics you will want to talk to a CPA.
    Edited By: m4ch1n3 Oct 26th, 2010 at 12:44 AM
  17. CPAEvil CPAEvil is offline

    Gainesville, GA
    United States

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    Oct 26th, 2010 (10/26/2010 12:37pm) in reply to m4ch1n3

    Admin Edit: also see our PocketFives Tax Q&A

    ---

    Feel free to contact me for specific answers to your situation. Also, check out www.pokerdeductions.com. My direct email is annm@johnstoncpas.com.
  18. Jennifear Jennifear is offline

    Niagara Falls, NY
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    Oct 26th, 2010 (10/26/2010 4:23pm) in reply to CPAEvil

     
    Originally Posted by CPAEvil View Post

    Feel free to contact me for specific answers to your situation. Also, check out www.pokerdeductions.com. My direct email is annm@johnstoncpas.com.

    Probably the best advice in this thread. Can you provide us with some general tips that *may* apply to the OP's situation?
  19. Danksta14 Danksta14 is offline

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    Oct 26th, 2010 (10/26/2010 6:54pm) in reply to johnsovva_ap

    Thread merged: Poker Taxes???

    ---

    Ok , well I just wanted to get an answer about taxes and claiming poker money to the US government for the 2009 year. This is the first time I have ever had to deal with paying taxes and dont want to get in trouble w IRS, but also don't want to give them half of my money earned. I profited around 80k, w total prize of around 175k. I have yet to receive any forms from the government or anything, so I was wondering how I should go about paying/not paying the taxes? would like to hear from someone who has prized over 100k and has dealt w this ; or knows there stuff about taxes. thanks alot.
     
  20. donkiman donkiman is offline

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    Oct 26th, 2010 (10/26/2010 7:03pm) in reply to Danksta14

    Claim the 175k as income. Write off the losses/buyins as itemized deductions. You will have to submit records along with your tax return that show this. Records can be as simple as an excel spreadsheet showing buyins/profit. If you are not confident in doing this, I would suggest having a an expert file your taxes for you.

    Thats just federal tax. State income tax is similar, but some states will require that you pay income tax on the entire 175k, as these states do not allow you to deduct gambling losses. Most states allow the deductions though.
    Edited By: donkiman Oct 26th, 2010 at 07:06 PM
     
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