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Message: [QUOTE="cAPSLOCK, post: 860335, member: 42960"] The craziest part is HOW the taxes are calculated. [B]You do NOT report your net winnings.[/B] Let me clarify. If you play for a year. End up with $10,000 in december in your account after a 100$ deposit in January (well done by the way) you [B]DO NOT[/B] Pay 30% of $9900. Certainly it seems like you would.. but here is what ACTUALLY happens. You must pay 30% of ALL YOUR WINNINGS no matter what. Your losses don't figure in (yet). So lets say you are a tourney player. You won $45,000 at a cost of $35,000 (netting our juicy 10k). Well you OWE THE IRS 30% of $45k. Period. So technically, when you bubble in your tourney and crash and burn just ITM... well you are not really ITM ;) If you pay 10k to play a tourney at a casino and win 10k in that tourney, the casino will withhold 3k for taxes! (I know this hurts). Your losses are reported as "gambling losses" and are part of your deductible. The good thing is you are not limited in the amount you can claim in this regard, so in the end this balances out (sort of although it can screw with your other (medical etc) deductibles). And you don't have to be one of the ~5% of online poker players who are profitable. You even have to pay taxes (and claim a deductible) when you net a loss. Though it has been correctly noted that the vast majority of online poker companies do NOT report to the US government. *IF* you make your living FULL TIME as a poker player you can ask to be granted professional status. Then you pay taxes on your net winnings just as you would any other income. The details of how to calculate your poker taxes might be best left to an accountant who knows the ropes. They can likely save you some money because of the way you do things like define a "session". You MUST keep your records. Even if you don't use a poker analysis tool you need to hold onto your table histories for the year. here's to hoping you pay a lot in this year, cAPS [/QUOTE]

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