taxing online poker winnings?

Posted by Nun Y at: 2007-12-19 13:18:37
ok lets just say i won 100,000$ on a bad beat jack pot on an online poker site do i have to pay taxes on it i mean what if i just cash out a few 1000 at a time into my bank will they ever find out cause i dont see the need to pay taxes when our government banded it cause they couldnt make money off of it and thats why they made it illegal but yeah any advice would be nice and i know your supposed to claim all winnings im just asking not ethicaly why i should have too cause i dont feel its right cause ive played for years on here lost a few grand and spent ton of house building up my bank roll it should be none of there bizz

Posted by sincity usa at: 2007-12-19 13:55:57
First of all, punctuation is your friend. Judging by the phrasing of that question, I doubt you'll be one to pull off a scheme to dodge the IRS with tax evasion successfully. Poker sites won't report income to the IRS, but if you have a US based bank account and are receiving regular large deposits, you'd be better off reporting your winnings. US based banks compare notes with the IRS, they'll know if you're getting a large sum of money even if you don't report it. Now, reporting it is a LOT simpleryou don't need to return documents specifying where you won the money, just report on a line marked "gambling income." Sounds easier than spending a few years in a federal prison, doesn't it?

Posted by goodtimefriend at: 2007-12-19 13:27:47
ummmrighttell that to the IRS & see what they say! but i hear ya & i am in your favor! good luck

Posted by JB at: 2007-12-19 13:57:06
go talk with a Tax guy and ask him him will have answers, asking here is stupid, no one on Yahoo is likely to be a tax attorney. and if you can find one, ask a shady tax guy.

Posted by Jacques Strappe at: 2007-12-19 16:27:15
as long as the site is over seas and you never put more than $9000.00 a month into it they will not question you if you go over that then they have to report it or if the site is in the US, they would have to report it

Posted by peteyC at: 2007-12-19 22:27:50
If i had to say anything to you it would be that you should claim all your winning that you make when you play poker. I report all my major winnings as earned income, a few years back i thought it would be great to try and hide my money from the IRS, but i found out what a bad idea it was. I made some large deposits in my bank account ( not over 10k, but more then i was used to at the time) and then i went out and put down a large amount on a new car. And sure enough i got a letter and phone calls from the IRS about my tax return. I had to pay back taxes and penalty's on top of being taxed on the money. The IRS is smart and they know what you do, if your making large amounts of cash from playing poker it will be hard to try and hide it from the IRS. And anyways as far as live bad beat jackpots they will have you fill out a tax form for the money on the spot. This means that you have to give them your i.d and soc sec card or you don't get payed. As far as online i don't know how they handle the tax issues, but just be safe and don't try it, cause you'll get caught and be sorry like i was.

Posted by William H at: 2007-12-20 05:18:52
the dollar sign goes before the number. now maybe you are DIS LEX ICK but more likely dumb and lazy.hire a good accountant and pay the tax. you will get caught because you are stupid. do you know how check spelling works?

Posted by patrick43113 at: 2007-12-19 13:31:06
The jackpot becomes taxable when you win it, not when you receive the cash. So, taking out a portion at a time will not affect your taxes should you choose to report them.