Tax Brackets

[Big Mike Watters 0]

This is the first year I am going to claim poker winnings. Some may guffaw, as it is less than 10K, but I was wondering...how much generally can one expect to pay on gambling winnings?At the end of a two week period, for example, comparing what I gross and what I net in my day gig, I get around 25% taken out each pay period. Would it be around the same rate for these winnings as well? I do understand that the more you make, the higher percentage comes out...What percentage comes out of a true pros roll for taxes? 40%? 50%?I say this because I am NOT prepared at all to pay due to poor money management. Yes...I am a degenerate. I just would like an idea of how much money I could expect to have to come up with at tax time. I get refunds on the money I make at my day gig. I haven't actually paid taxes ever.Any helpful advice or knowledge you might have will be met with warm thanks and a kind word for you. B)

[Lonny_Huff 0]

Heck, who doesn't pay taxes on their winnings? Seriously.

[llou 0]

Your tax bracket depends on how much income you report overall (after deductions), not just on how much you won gambling. For example, if someone who makes 100K wins 10K, he pays a higher amount than someone who makes 40K per year at his regular job and then wins 10K.You can estimate how much YOU would have to pay by looking at a tax table (either online or in a set of instructions that comes with the tax forms) for the amount of tax owed at your personal income level.For example, if you expect to make 30K (after deductions) from other sources and 10K from gambling ... look up the amount of tax owed on 30K, then look at the amount owed for 40K. Do the same thing for your state taxes.If you give us more information about your other income, someone here might be able to look it up for you though the IRS has most of forms and table online so that you could easily do it yourself.That's assuming gambling earnings are taxed as regular income. Am I right about that guys? Or am I wrong?llou

[Big Mike Watters 0]

Heck, who doesn't pay taxes on their winnings? Seriously.

Unknown. I WANT to pay taxes. What a sucker I am... :closedeyes:Thank you llou!

[blacktie31 0]

Unless you can convice them you are a pro they will be filed as gambling winnings and have a different rate.Check out this linkhttp://www.pocketfives.com/DD6E4B33-181C-4...3BE6A8AF8C.aspx

[telescop 0]

I think poker winnings are only taxed as regular income if you are a pro, otherwise they are taxed as winnings, at a higher rate, you obviously need to speak to a professional, and I don't mean that kind of professional.

[Big Mike Watters 0]

nh sirsThank you for your help. I wanna make sure I do this correctly.

[mrdannyg 274]

interesting. i was going to come in here and make a joke, but then saw the thread was filled with good, helpful posts, so i didn't.i guess we learned something here.

[three2 0]

I believe poker winnings are just included in your gross income:Gross inclome includes the receipt of any financial benefit which is:Not a mere return of capital; Not accompanied by a contemporaneously acknowledged obligation to repay, and; Not excluded by a specific statutory provision in the tax code.The tax code defines "gross income" as:§ 61. Gross income defined. Except as otherwise provided in this subtitle, gross income means all income form whatever source derived, including (but not limited to) the following items:..."Income" has been defined by case law as:An “undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.”Then, you are taxed accordingly to the tax bracket you fall into. But really I have no idea.

[Balloon guy 158]

If you make over 40K a year have a tax guy do your taxes.They are worth the money.Wasn't Moneymaker an accountant? I rest my case.

[MadKennedy420 0]

taxes all depend on how much money you made in the real world , if you made less than 35,000 this year you should be in the 20% brackett, it steadily goes up from there. cap at like 42% or something around there. If you can show for loses then you can deduct them from the winnings. im not positive but you always call a local CPA in your town GL

[GenaB 0]

This is from the IRS web siteTopic 419 - Gambling Income and ExpensesGambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income. A payer is required to issue you a Form W-2G (PDF) if you receive certain gambling winnings or if you have any gambling winnings subject to Federal income tax withholding. All gambling winnings must be reported irrespective as to whether any portion thereof is subject to withholding. in addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax. You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A (PDF). However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.