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Does the United States Tax you for poker earnings online?

I play poker online and if i make a lot of money i want to know how much im going to have to give up if any to pay taxes. What is the minimum i need to earn to pay taxes? how much of my earnings will i have to surrender? I would appreciate any helpful links to websites explaining this issue

Posted 791 day ago

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Davidov 		If you earn more then $600 (I'm pretty sure-check irs.gov if it's changed) then you must file. If you itemize you can deduct gambling losses to the extent of your winnings. If you do this I'd have receipts, as this is a big audit flag.

Posted 791 day ago

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Davidov 		Bostonian is completely wrong - don't listen to him. Online poker is NOT illegal as far as the Feds are concerned - all that the recent law prohibits is direct money transfers between gambling sites and US banks. It may be illegal in some states or cities (but they basically have no way to enforce the law, so even if you live in one of those areas I wouldn't sweat it.)

Posted 791 day ago

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Davido 		gambling winnings have to be declared and however much this increases your total gross
you have personal exemptions of $3650 and if you are single, standard deduction of $5700, now a total of $9350 not taxable, where to you go from here?

Posted 791 day ago

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Davido 		You must report 100% of your winnings. (Including the first $1.)


http://www.irs.gov/taxtopics/tc419.html

Posted 791 day ago

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Davidov 		yes

Posted 791 day ago

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Davidov 		How does a "tax rate" of MORE than 100% sound?

On-line gambling is illegal in the US. You are subject to forfeiture of ALL funds, on top of having to pay tax on the winnings. Additionally since the activity is illegal you cannot take an itemized deduction for any losses sustained. If you gambled in a legal casino you could deduct losses up to the amount of the winnings but since your activity is illegal no deduction is allowable.

Don't gamble on line if you live in the US!

Posted 791 day ago

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Davidov 		Yes. The United States taxes all gambling winnings, without exception. The amount of your gambling winnings is added to the total of your other income, and the tax rate is determined by the total. It could be well over 1/4-1/3, depending on how much other income you have.

If you have enough income to have to pay tax on any of your income, then pay cannot make even $1 in gambling without paying tax on that additional dollar of income.

The maximum total that you can make without paying tax on any income could be anywhere from less than $1000 to over $10,000, depending on whether someone else can claim you as a dependent, your marital status, and various other factors. If you total income is enough for any of it to be taxed, then all additional income is also taxed.

Posted 791 day ago

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Davido 		Every dollar of winnings is taxable. You may or may not be issued a 1099 depending on the amount and type of wager and the amount of winnings. All winnings are reported as income and are NOT netted with gambling losses. Gambling losses are reported on Schedule A and are limited to your winnings.

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