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Server Time: 9/5/2008 1:12:23 AM PACIFIC |
 Tax Issues, WilliamS, 16. Sep 2003 09:12 | ||
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| I've asked this before and really not gotten a lot of response, but here goes again. What is the correct way to file income from online poker? I know about the three years of record keeping to file as a professional and be able to write off expenses, but I'm wondering about the first 3 years. What kind of percentage does one expect to pay on the winnings? I can ask my accountant but I'm a little embarrassed to even tell him about it (LOL). By the way, I live in Arkansas if anyone does know any specifics or if anyone is willing to say how they are handling this issue. Thanks Will | ||
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| Re: Tax Issues, Chikung, 16. Sep 2003 09:20 | ||
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| You report it like any other income from gambling. "Generally, report all gambling winnings on the "Other income" line of Form 1040. You can deduct gambling losses as an itemized deduction, but you cannot deduct more than your winnings. Keep an accurate record of your winnings and losses, and be able to prove those amounts with receipts, tickets, statements, or similar items that you have saved." Theoretically, if you win over $600, you should be furnished with a W-2G. But I highly doubt that an online site will track and account for your wins/losses. This is more for Casinos, should you hit a big jackpot. Here is a link with all the info you need from the IRS http://www.irs.gov/pub/irs-pdf/iw2g_04.pdf Regards Chikung | ||
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| Re: Tax Issues, WilliamS, 16. Sep 2003 09:21 | ||
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| Thanks Chikung | ||
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| Re: Tax Issues, Mayo, 19. Sep 2003 10:26 | ||
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| But by filing tax from online winnings, are you not admitting participating in an illegal activity? | ||
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| Re: Tax Issues, EC, 20. Sep 2003 09:44 | ||
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| still better to report income from illegal activity than to not report it at all. You don't have to say where you made the money, only that it's "other income." They don't ask where it came from. Penalties for tax evasion are far worse than gambling online, being that there currently is no penalty they plan on using for gambling online. Eli on 19. Sep 2003 10:26 Mayo wrote: > But by filing tax from online winnings, are you not admitting participating in an illegal > activity? | ||
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| Re: Tax Issues, kennycatkiller, 23. Sep 2003 19:59 | ||
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| I doubt that you qualify as a professional gambler--that is, gambling is your primary means of supporting yourself (and your family, if you have one). That is, I assume you have a job and play poker as a casual or recreational player. If my assumptions are correct, then you need to keep a diary of your results, showing: Date, Time In, Time out, Elapsed Time, Casino or On-Line Site, Amount Won OR Lost (two separate columns), Others with whom you played (if available). Then, at the end of the year, add up the amount won in your winning sessions and the amount lost in your losing sessions. A recreational player is NOT allowed to net the two. The win goes on the front of the Form 1040 and the losses go on Schedule A (Note, however, that your losses can not exceed your wins). The above is the IRS book explanation, but, what the hell, who knows whether/if you won anything at all? I would estimate that 90%+ of all gamblers do NOT report their winnings unless given a 1099 form or a W2G. Good luck | ||
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