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ImBetterDude
Joined: 18 Jul 2007
Posts: 747
Location: California
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 Posted: Thu Jul 03, 2008 12:46 am Post subject: Cashing in WSOP |
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| Quick question...when you make a significant cash in the WSOP, are you taxed a % of the money? |
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jfletcher
Will work for food
Joined: 24 Aug 2004
Posts: 3204
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| Posted: Thu Jul 03, 2008 1:02 am Post subject: Re: Cashing in WSOP |
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| ImBetterDude wrote: | | Quick question...when you make a significant cash in the WSOP, are you taxed a % of the money? |
Harrah's reports it to the IRS, so it's up to you to also report it as income. |
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PauliF
Actuarial - tested and proven
Joined: 16 Jun 2004
Posts: 2825
Location: London
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| Posted: Thu Jul 03, 2008 1:58 am Post subject: |
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no
I fill in a form and show my passport
we dont pay tax on winnings that would be an outrage |
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ImBetterDude
Joined: 18 Jul 2007
Posts: 747
Location: California
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| Posted: Thu Jul 03, 2008 2:22 am Post subject: |
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| So lets take a 20,000 cash. How much of that would get taxed come tax season? |
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PauliF
Actuarial - tested and proven
Joined: 16 Jun 2004
Posts: 2825
Location: London
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| Posted: Thu Jul 03, 2008 2:36 am Post subject: |
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zero if you are a British subject
word |
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jrspm
1K Club
Joined: 22 Apr 2005
Posts: 1972
Location: London
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| Posted: Thu Jul 03, 2008 3:52 am Post subject: |
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| ImBetterDude wrote: | | So lets take a 20,000 cash. How much of that would get taxed come tax season? |
I'm no expert on US tax, but one assumes this would be dependent on your other income for the year. If you lost $100k prior to cashing for $20k your situation is far different than if you're up $100k for the year so far. |
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MXRider
Slim Shady
Joined: 19 Jul 2004
Posts: 5017
Location: Have it your way!
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| Posted: Thu Jul 03, 2008 6:59 am Post subject: |
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| jrspm wrote: | | ImBetterDude wrote: | | So lets take a 20,000 cash. How much of that would get taxed come tax season? |
I'm no expert on US tax, but one assumes this would be dependent on your other income for the year. If you lost $100k prior to cashing for $20k your situation is far different than if you're up $100k for the year so far. |
Not actually true as they don't tax you on your net unless you are a pro where you can write off your losses.
In the US, you are supposed to report all winning sessions, so you could in theory lose money for the year and still owe taxes.
In the situation that the OP asked, you need to declare the 20k as gambling winnings on your taxes and will be taxed on the full amount based on your tax bracket. |
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nsidestrate
Suited's Love Monkey
Joined: 26 May 2004
Posts: 22652
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| Posted: Thu Jul 03, 2008 7:20 am Post subject: |
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In effect, they do sort of tax you on your net as you claim gambling losses as an offset. There are a few gotchas where the losses don't get subtracted until after some other stuff happens, so it could trigger some unpleasant consequences like the Alternative Minimum Tax, but in general losses offset winnings.
Depending on your other income, you could pay the federal government anywhere from 0% to 35% of your winnings. The majority of Americans would pay 25%, 28% or 33%. Additionally, you owe anywhere from 0% to 10% to your state in income tax as well. In my case, about 40% of my poker winnings go to the government at a minimum. Two years ago, because of the effect of the AMT and the way it affected my deductions, over 50% of my poker winnings were consumed by tax. |
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doubleup
Joined: 21 Mar 2004
Posts: 346
Location: Redding, California
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| Posted: Thu Jul 03, 2008 11:31 am Post subject: |
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| nsidestrate wrote: | | Two years ago, because of the effect of the AMT and the way it affected my deductions, over 50% of my poker winnings were consumed by tax. |
That's disgusting. So we know Britain doesn't get taxed, what about Canada? Anyone? With increased gas prices, peckin fights with every country out there, not allowing my kids to go outside alone because 4 sex offenders live within 100 yards of my place....makes Canada definitely look appealing.
Ever since Michael Moore's documentary that involved Canada and how they don't have to lock their doors...made me curious. |
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ImBetterDude
Joined: 18 Jul 2007
Posts: 747
Location: California
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| Posted: Thu Jul 03, 2008 11:41 am Post subject: |
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Sounds like if you're a poker professional, a United States citizen is the last thing you'd want to be! A) It's expensive to live here. B) You lose 30%ish of all your winnings.
Yikes. |
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taz115
Hzamm9rd, Yo!!!
Joined: 08 Oct 2005
Posts: 8476
Location: Edmonton, Canada
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| Posted: Thu Jul 03, 2008 12:19 pm Post subject: |
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| doubleup wrote: | | nsidestrate wrote: | | Two years ago, because of the effect of the AMT and the way it affected my deductions, over 50% of my poker winnings were consumed by tax. |
That's disgusting. So we know Britain doesn't get taxed, what about Canada? Anyone? With increased gas prices, peckin fights with every country out there, not allowing my kids to go outside alone because 4 sex offenders live within 100 yards of my place....makes Canada definitely look appealing.
Ever since Michael Moore's documentary that involved Canada and how they don't have to lock their doors...made me curious. |
I'm not sure if the law is clear or not concerning professional players. But there is no tax for casual guys with jobs where you actually pay income tax. I've never paid tax, not even on my big score.
My accountant said he'd be unsure whether or not I'd have to pay tax if it was my only source of income.
The key is whether or not it is classified as income. Winnings here are consired winfalls, no tax on the lottery or casino wins. If you made steady income and it was your only income the tax department 'may' consider that income if you were audited. A precedent has surely been set but my accountant was unaware. |
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