Anyone know about cashing out and taxes?

[Shadowskills]

Let's say I cashed out 10,000. What's are tax considerations

[Rondavu]

What $10,000?

[DimitriT]

these are gambling winnings
there's a line on your 1040A for them
if this is your primary source of income
you may qualify as a professional gambler
which will allow you to deduct alot of your
expenses: including rent on your space,
computers, internet access, etc.

i hope to have this problem some day

[ollie_c]

Do you have to report all winnings, or just > a certain amount?

Is there an easy way that you keep track of this?

And what's the tax work out to, if I wanted to pay it?

[DimitriT]

An easy way to calculate this is

net withdraw - gross deposit = winnings

Don't forget to add all your "gross deposits" including buying
chips at a casino, lottery tickets, etc.

All your winning are taxable. There is no minimum that I'm
aware of. It gets taxed as earned income at your standard rate.

I don't believe netteller or firepay (or however you fund or withdraw)
currently report transactions to the IRS. They may be required to
report transaction greater than $10K but I have no solid information
on this (maybe you can find out and tell us).

Just found this on www.pokernews.com FAQ for online poker:

Q: Do I have to declare online poker winnings on my taxes?
A: The safest way in life is to declare all income on your income taxes, and may we recommend this. Any money that hits your bank account should be declared in full. If you begin to play seriously, you should keep detailed, and really specific records of your play, session by session. These records will allow you to file a proper tax return. For Americans, the IRS has a guide for this, guide 529, available at the IRS.gov website.

[Shadowskills]

What if I just cash out $1000 at a time? Can I avoid paying taxes?

[DimitriT]

What if I just cash out $1000 at a time? Can I avoid paying taxes?

Don't know. Let us know how it works out. Do they have internet access at the Federal Pens?

[SmackinYaUp]

Well it depends if he's temporarily assigned to a white collar resort facility or a federal pound me in the ass prison.

[SinkRox]

if you can demonstrate someone has stacked you [for a tourny for deffinate at least] then they cannot tax it. ...enjoy staking eachother

[daluchy]

This is the newest topic I've seen on this so I'm putting this here, hehe.

For players over 21 and with jobs that make more than their poker winnings, I see how declaring your poker winnings on your tax report is neccessary.

But how does it work for a 19 year old in college with only a work-study job on campus? I'm up around $500 currently and have the net profit in Neteller or in some Poker Account. With all of that said, is my status and my winnings even worth having to think about taxes?

[Crotalusatrox]

Personally I am curious if I can avoid some of the taxes by not cashing out until I have enough to be considered a professional? I would assume that anything you cash out would be taxable, but how does the IRS view the money when it is just bits in your online account?

[lolzzz_321]

Well it depends if he's temporarily assigned to a white collar resort facility or a federal pound me in the ass prison.

I like this movie.