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Message: [QUOTE="aliengenius, post: 860499, member: 11924"] This thread is so full of errors and falsehoods I don't even know where to start, but here goes: As pointed out by other posters, the sites themselves to NOT take out taxes, nor do they report your winnings in any way. It is up to YOU to report your income from all sources at tax time. This is simple ignorance. It is NOT illegal for US players to play online poker (although [I]some[/I] local and state jurisdictions have passed laws making it so). Never has been. I suggest you educate yourself and stop spreading this unfortunately still common myth. [URL="http://www.playwinningpoker.com/online/poker/legal/"]"while the US Justice Department recently stated that the Wire Act covers casino games in addition to sports wagering, the Federal Appeals Court has directly ruled that that interpretation is not correct."[/URL] The recent UIGA that the Republicans sneakily hid in a Safe Ports Act makes it unlawful for [B]financial institutions[/B] to process transactions from online gaming sites. It does NOT make it illegal for an individual to play poker, or to make said transactions themselves. See [URL="http://www.cardplayer.com/magazine/article/15416"]here[/URL] and get more depth and updates and info on other laws and developments [URL="http://www.cardplayer.com/poker-law"]here[/URL]. One more time, playing poker online is NOT illegal. Not paying your income taxes [U]is[/U] illegal. As stated above, it has ALWAYS been your responsibility to declare ALL your winnings, regardless of amount. It's income, you have to play taxes on it. There was a recent move to try to [URL="http://www.cardplayer.com/poker-law/article/2920/irs-clarifies-poker-tournament-tax-rules"]collect taxes at the time of the winning [/URL]but it was [URL="http://www.cardplayer.com/poker-law/article/2854/tax-law-that-targeted-tournament-poker-players-stopped"]rescinded[/URL]. Now casinos are only [URL="http://www.cardplayer.com/poker-law/article/3675/tax-law-on-poker-winnings-now-in-effect"]reporting the winnings[/URL], not taking the taxes out at the time. It remains, as, again it always has been, the responsibility of the individual to play their required taxes at the appropriate time. [B]False. [/B]You do not have to withdraw-- any WINNINGS are taxable and must be declared. It is similar to interest earned in your bank account, or dividends paid on your stocks: just because you don't remove it from your bank or brokerage account doesn't mean you don't have to pay taxes on it. It's income that you have access to and it is taxable. Lots of [I]half truth[/I] and misconceptions. The IRS wants you to be able to document all your gambling "sessions", one line for wins, one for losses, and you play tax on the [I]difference[/I]. However, it is VERY important to understand that you can NOT simply net the difference: you have to declare ALL your winnings, then are allowed to deduct your losses (in a separate place). Please note that the [U][I]effect[/I][/U] is that you pay tax on the [U]net winnings only[/U], although you have to document it in a somewhat convoluted way. [B]Both[/B] professional and recreational/amateur gamblers end up paying taxes on the [U]NET[/U] win, although they go about it differently and file different forms. You can deduct your losses in so far as they offset your winnings only. Say, however, that you NEVER won a single session, or that you gambled only once and lost: you can't deduct that loss as an offset to your regular income (only your gambling win income). Anyone interested in not cheating on their taxes should buy these books (and an extra copy for their CPA too): [URL="http://search.barnesandnoble.com/How-to-Turn-Your-Poker-Playing-into-A-Business/Ann-Margaret-Johnston/e/9780977486205/?itm=1"][IMG]http://images.barnesandnoble.com/images/14970000/14971761.JPG[/IMG][/URL] [B][SIZE=2][URL="http://search.barnesandnoble.com/booksearch/results.asp?WRD=How+to+Turn+Your+Poker+Playing+into+a+Business%3A+Knowing+What+to+Deduct+to+Improve+Your+Odds+With+the"]How to Turn Your Poker Playing into A Business : Knowing What to Deduct to Improve your Odds With the IRS by Ann-Margaret Johnston[/URL][/SIZE][/B] and [ATTACH]12085._xfImport[/ATTACH][SIZE=2] [/SIZE] [/QUOTE]

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