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Taxes on cash outs

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  1. hotriceaa hotriceaa is offline

    Newark, DE
    United States

    Posts: 115
    Joined: Sep 05

    Apr 6th, 2008 (4/6/2008 2:34am)

    If I cash out a $2,500 check from pokerstars, are there any tax forms or anything I need to fill out? Is there any simple tax free way to cash out?
  2. Caleb2004 Caleb2004 is offline

    ND
    United States

    Posts: 1,510
    Joined: Oct 05

    Apr 6th, 2008 (4/6/2008 2:42am) in reply to hotriceaa

    claim win and loses at end of year tax thats all
  3. stabbyfoulke stabbyfoulke is offline

    West Hartford, CT
    United States

    Posts: 443
    Joined: Jul 06

    Apr 6th, 2008 (4/6/2008 7:53am) in reply to hotriceaa

    taxes are solely levied against gambling winnings. When, If, and How much you cash out of a site is completely immaterial to this calculation.
  4. dhubermex dhubermex is offline Senior Writer

    Mexico

    Posts: 8,471
    Joined: Jul 05

    Apr 6th, 2008 (4/6/2008 9:57am) in reply to hotriceaa

    This issue was covered in a recent Podcast with CPA Ann-Margaret Johnston of www.pokerdeductions.com. She wrote the Tax Q & A for our site, but it doesn't look like that file has made it over here to the new site yet.

    To access the Podcast archives, visit http://www.pocketfives.com/Podcast-Archive Her show was on March 6th, 2008.
     
  5. xTEDFORRESTx xTEDFORRESTx is offline

    Bucharest
    Romania

    Posts: 2,213
    Joined: May 07

    Apr 6th, 2008 (4/6/2008 11:30am) in reply to hotriceaa

    There are several tax forms you can choose among to fill out. The 1040a (commonly called the long form), the 1040 short form, or even the 1040ez. Consult with a tax professional or call the IRS to see which form would be best for you to use.

    The simple tax free way to cash out is to simply cash the check and don't declare it as income. Then cross your fingers and hope you don't get a polite letter from the IRS in a couple of months, or maybe years, telling you to pay up (plus interest and penalties).
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