Anyone know what the deal is for a U.S. resident? Since the online sites are offshores does that have any weight in this matter? i never saw it being an issue, but I've made about a grand in last three or four weeks and plan on continuing to show a profit. Is it true that gambling earnings are more harsh so as to discourage people from gambling for a living (because it leads to increased bankruptcy, suicide etc. that ends up costing society a good deal in the long run.)

Also, as I've said, ive made about a grand in last three to four weeks, playing ten dollar single table tourneys. does anybody know how much variance I should expect in the long run. so far my biggest cold streak has led to only a onehundred dollar hit. Should I expect something more drastic in the future?

Finally, at what point do y'all think my bankroll can withstand me moving up to 20 dollar games (again, not in cash but in single table tourneys). my bankroll is currently a little above $1400. i told myself originally that my risk of ruin would be small enough to play 20 dollar games when I was at $1500. My plan is to play 20 dollar games whenever I am above 1500, and when I dip below to go back down to ten. However, even though my biggest hits have only been slightly above 100 bucks, i still fear the fluctuations. should I wait until I hit 2 grand or can I dive in at fifteen hundred.

Any other advice with concern to bankroll, taxes, etc. would be greatly appreciated, as I will be going to law school in about a year and a half and don't know what I am going to do in the meantime. I am looking to clerk at a law firm, but would love to pay the bills with poker for a month or two. Is this unrealistic?

Thank you for your time,
Jim
(Sorry for length of post. really, I am. oh, and if you are an attorney in chicago, let me work for you . . . or not)

i believe that with a bankroll of 1500 the move up to 20 dollar single tables is safe. ive been playing 10 dollar singles for a few months now just tryin to see what percentage i make the money and what percentage i win. i just moved up to the 20 dollar singles and im happy to say it doesnt really feel much different (in terms of skill of opponents). i know they play a little bit better, but if anything, that makes it easier to read them, if you know what i mean. as far as taxes go, i dont know the laws exactly - hey YOURE the law student, lol. ive made about 15 g's in the last 6 months, so im also wondering what the situation is with online poker and taxes, if anyone knows the details on that it would be greatly helpful!!!!

This matter concerns me as well since I am a prop for an online cardroom. They pay me just by dumping money straight into my online account every week, so it's essentially the same as if I had a winning session....I can still lose it though, which I have on a few too many occasions. :cry:

I'm also aware that professional players can claim both their wins and losses at the tables. Any more info on what I should claim, if anything, would be greatly appreciated.

You have made $15,000 in 6 months just from playing $20 singles???

Are you asking what you "should" claim or what you have to claim to avoid getting in trouble with the IRS?

You "should" claim any profit you make gamling.

Realisitcally, unless you're pulling and spending 5 figures from playing online no one's likely to notice your extra income coming from an online site via a netteller transaction.

You have made $15,000 in 6 months just from playing $20 singles???


1500 from $10 singles apparently.

Which does seem equally unrealistic unless he's 8 tablinig them.

Ah my bad, over here a g is a thousend, you should use the same terms as us to make it easier

I am no expert here but I know that if you make a single deposit of $10,000 in your saving account by cash or a source (say IGM pay), or multiple deposits over time from a single source that add p to $10,000 or more, your bank has to report that as annual income to the IRS.

Therefore the IRS will be looking to see that amount listed as income on a schedule. At that point you will also be able to list deposits annually to that single source as net losses.

Since my net was only +$3,805 for 2004 I don't have a problem but I have spent time thinking about how I will try to get around this in future years (2005?).

My only solution so far would be to hook up multiple bank accounts and be sure not to cash out more than $9,999 to any one of those accounts. Not sure if this solution is viable but it seems to make sense.

For the record my bankroll to buy-in ratio for SNG tournies is 25x. Which means I must have $550 in the bankroll to play a $20 SNG (including fee). I think $1,500 is more than enough, by my rule I could play $50 SNG's with a $1,500 bankroll.

For cash games I need 250x the BB to play.

I am no expert here but I know that if you make a single deposit of $10,000 in your saving account by cash or a source (say IGM pay), or multiple deposits over time from a single source that add p to $10,000 or more, your bank has to report that as annual income to the IRS.


Mmm,, don't think so.

Maybe one large transaction, but I think small ones totalling 10k would be a big pain in the ass for banks.

I don't work at a bank, but with computer systems set up as they are it wouldn't be work at all to identify when this happens. Not to mention the US government really doesn't care how much of a pain in the butt it might be, they just want their cut...

I would like to know for sure myself so if there is a resident expert reading this please help, it is a good topic.

The statement about a bunch of deposits from one source that total over 10K having to be reported by your bank I'm almost 100% is incorrect. I have friends that have made over 10K from propping online the past few years and have used Firepay to deposit all of it. They haven't claimed a dime and have not ran into any problems. The reason for my concern is that my significant other and myself are hoping to purchase a home in the near future, so I was just curious as to some of the ramifications, if any.

Okay I just emailed my tax accountant friend to help me clear this up. The bank has to file the form to the IRS for *cash* (not EFT) deposits totaling more than 10K in a 30 day time period. Does not mean this gets counted as income, the IRS just wants you on the watch list for suspicous money movement.

This is what he said about EFT regarding our discussion:


Record is there at the bank if you EFT in and EFT out.
They don't report anything to the IRS. But.... the records will be shown if
you are audited and it is DEFINITELY taxable to the extent you win. It may even be required that you show the winnings on your return that you cashed out even if you net to a loss. You would have to show the winnings and then deduct the offsetting losses.


So only worry if you are going through an audit...

First of all, to the original poster, finally someone here has some concept of bankroll in relation to playing stakes. As for you moving up, I would move up to the $20 once you hit $1500, if you dip below $1300 then go back to the $10 until you work it up again. Keep doing this until you can successfully and consistently beat the $20 and make a profit. I am just happy to see someone who isn't playing beyond their bankroll and working their way up.

As for taxes, yes the income is taxable. The IRS does want their cut. If you go to the IRS website you can find some information from there in relations to gambling winnings. However, the tax code I have found is often confusing. But the essential is this, at the end of the year you need to show how much $ you won, subtract off any gambling losses to get your net notal which is then taxed. Even though the federal government views online gambling illegal, however just like a drug dealer you are suppose to report the $ anyways to the IRS. So I recommend you report it as it is better than 4 years from now getting audited and then either paying the back taxes or heading to pound me in the ass federal prison (God I love Office Space).

Scoots and bdluss,
Thank you very much for the information and to bdluss the advice. I will definately do that. I agree with the importance of smart and calculated bankroll management. The reason I stay within my bankroll is because I love poker, not gambling.
I believe that someone earlier cast doubt on the feasibility of making 1,000 dollars in the timespan I have playing at the stakes I do. In response I would point out that 1). I just finished up my courses in college in mid-december and have played more poker than is probably healthy-so much so that I am seriously considering getting a stationary bike to ride while I play so that i will have some semblance of physical functionality and 2). I play limit tourneys, which I believe online cuts down on the luck factor. Im not looking to start a fight with that statement, all I'm saying is that I personally find that to be true. Maybe I am too susceptible to doing stupid things occasionally and need that safety net of limit. I've played at multiple tables rarely. Maybe I've just gotten really lucky but I swear to you that it is possible because I have done it. I feel little incentive to lie in an anonymous forum, though i understand that some people do.
Anyway, anymore info on the taxes, if there is anything more to add, would still be appreciated.
Thank you for your time,
Jim

a litlle off topic, but when do i stop being a newbie?

for this forum i mean

after 20 or 25 posts, i believe.

Thanks for the replys about the tax ?'s...I guess I'm gonna have to talk to my tax guy to try and figure out how much I should withhold. Damn the gov't!

I work for a bank and unless it just changed its 10,000 and over in a day to file that form for suspicious activity. but ill aska round a nd see if I'm correct

I just wanted to post to see if it still list me as a newbie......

guess so........

thanks for the negative remarks....ive won 15,000 in the multi-tables ive played. ive been very fortunate (or lucky, or whatever). ive made only a few hundred on the single table tourneys, enough to buy my entries into the multis. i was only mentioning it cause i know i gotta start paying taxes, or at least find out what the laws are concerning online poker (since its basically illegal in america, i think...)