7 replies to this topic

[DECKtheRIVER]

Hi last year i was just starting in online poker and only made a couple grand by the end of the year, this year however i am picking up where i left off last year and making a steady income. For the first 4 1/2 months this year i am up over 7 grand and i don't know what to do about taxes. This is nearly half the amount of my actual income. If i keep this pace or a little less we are talking 12 to 14 grand and for me that is a lot of money. Im just not sure what to do, i read some other posts on other sites and no one talked about ammounts, last year i was not worried because of my 2 grand i had nearly half of that on the two sites i play. Please help me on this subject, i am a low limit player on a good run and don't want to give it all back on taxes if i don't have to. Thanks for your comments (DECKtheRIVER "P.P." and Hussell" P.S.")

[DECKtheRIVER]

If anyone has ever payed taxes on there winnings or has not for a few years and everything has been fine please let me know. Any IRS stories of audits or anything would be appreciated.

[allinbluff35]

buy "the gamblers guide to taxes" by walter lewis, amazon.com has it for like $12

[jjdylan]

stole this from another forum, but 'tis good advice.

Quote

every deposit that goes into a poker room or neteller is a loss. Everything I cash out from poker rooms or neteller is a gain.The net is what is taxable.But you can offset the gain with related items, such as ATM CASH WITHDRAWALS that you took and lost in the B&M casinos. These are also losses that you can apply to your online gains.I believe that the IRS will be looking at these online poker transactions. I believe that since there is a lack of legislation in this area, it will be the IRS that takes the first stand as big brother.Declare it all and avoid an audit.

[Balloon guy]

Another way to handle it is to bluff the IRS. Tell them you made nothing, actually you lost $7,000. Then after you tell them, control your breathing, and look straight down at the felt. Don't look them in the eye. This only tips them to 'call' you. Try to act weak, but don't look like you're trying to act weak. But don't look strong either, look kinds of macho meek if you know what I mean.If they do choose to call you, muck you're 1040 EZ and ask for an extension. Incidiently, books on poker are tax deductable if you have signifigant income from poker. Also your computer can be depreciated, online services completely written off, as well as trips to Vegas. Cheetos and Rockstar drink are not. If you are under 21 you may want to just ignore filings and deal with it when you find a girl you're serious about so you can prove your love to her. Nothing says "I love you" like a 4 hour session at the local IRS office.

[JimD82]

I got one of those ATMDebit cards from netteller. My plan is to just withdraw it as cash and use half of it as spending money and put the other half into my live play bankroll. Pretty sure that if I don't take out too much at a time or put large amounts in the bank I should be ok. It's not like party sends a W-2 form...

[DECKtheRIVER]

thanks i have a neteller account but i have never used it. don't they charge a fee?i I usually just move the money through my bank accounts but that sounds like a good idea about the atm card. I have thought about using netteller as my bankroll fund but i guess i just hate to pay a fee.

[allinbluff35]

DECKtheRIVER said:

thanks i have a neteller account but i have never used it. don't they charge a fee?i I usually just move the money through my bank accounts but that sounds like a good idea about the atm card. I have thought about using netteller as my bankroll fund but i guess i just hate to pay a fee.

neteller is free if you don't use instacash