Paying Taxes On Poker Winnings In The US
A player has the option of having an amount withheld from their win of up to If you need to pay something more than 25K tax bill. Learn from online pros. Tournament players should log each tournament entry. One thing I am curious about though is what would happen if I were to win something like the main event? However, if I could buy a house somewhere else and avoid some taxes, absolutely. You must be able to prove both your winnings and losses if you wish to deduct your losses.
Is Gambling Income Taxable?
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This is what most players will do. A player that files as a recreational player will pay their standard tax rate on this money, but will not have to pay Social Security or Medicare taxes on these winning. Most players that have full time jobs will file this way. Players that have demonstrated a pattern of winning can claim their winnings as a professional gambler, regardless of whether the player has a full time job or not.
A pattern of winning is not defined by the IRS, but many believe it means the player has gambling wins in two of the last three or three of the last five years. This is where it gets complicated, as this type of filing requires a Schedule C tax form. This is the same tax form used by self-employed business owners.
There are many advantages to filing this way and one large drawback. The drawback is that a player that files as a professional player must pay the self-employment tax on that money. When someone has a standard job they pay 6. This means that since you are filing as self-employed, you pay both sides of this tax because there is no employer to pay the other half.
The percentage for the employee side was 4. There is also a 2. This means that you will pay The total percentage in was Schedule C filers will be able to deduct 6.
This adds some tax relief. The good news is that professional players that file a Schedule C may deduct all expenses that are related to their poker business. Travel expenses tend to be the largest for professional poker players.
The mileage expense for was That number will be This includes miles driven to and from any casino or other gambling establishment in your personal vehicle as long as your intention was to win money. Players that think they may file this way should keep a log of how many miles that are driven to and from any poker game, even if the game was not in a traditional casino. You will need this information to decide which way to file at the end of the year. Other travel expenses may be deducted as well.
This includes airfare, hotel and rental car expenses when you take a trip where your primary purpose is to win money playing poker or some other gambling game that requires skill. Online poker players may also have other expenses related to their work. Computers are deductible as a business expense. If you bought a computer with the sole purpose of using it for your poker business, then it qualifies as a tax deduction. So does that monitor setup needed to table.
There are also some expenses that get overlooked. Now I haven't had this situation and probably never will, but I am just saying Haha if you want to see how anti-government I am then just look at my other posts lol. May 27th, , 1: Do so at your own risk. May 28th, , 5: Originally Posted by JPoling. May 30th, , Originally Posted by Carl Trooper. I would never give up US citizenship for a lousy k.
Now if you told me 10 million could be 10 million oppose to 6? Even then I wouldn't. Family and friends and security here isnt worth dodging for that.
However, if I could buy a house somewhere else and avoid some taxes, absolutely. Thats like 5 years salary for many people! June 15th, , 9: What about this scenario? Say your bankroll was your business and part of your business expenses, so in order to keep your business alive you need the money as sort of a cushion. Page 1 of 2 Use the arrow to the right to read the next 1 page s. Join the Conversation at CardsChat. CardsChat is an online poker community of , members in countries.
Why more than , poker players have joined CardsChat Quickly improve your game. Learn from online pros. Join more than , active members on our forum. Honestly the reason I ask is because I would hate to win. Page 1 of 2. Taxes on Poker Winnings I know you are supposed to file taxes, but can you avoid it? Best method for paying poker Taxes? April 20th, 8: March 30th, Question about taxes from poker.
December 13th, December 13th, 1: Why poker rooms do not pay taxes? November 15th, 4: Originally Posted by BlakeBrown I know you are supposed to file taxes, but can you avoid it? Not Juicy St Game: All of them Game: PS play cash Game: Originally Posted by Propane Goat I don't think this will work, you're still a US citizen and that's what the test is for being subject to US income tax.
Originally Posted by JPoling It is not as bad as you think. Originally Posted by Carl Trooper No way.