This year I will make over the alloted $5000 for taxes for gambling winnings. As far as I could tell, looking through crap on the net, I'm going to need to pay out 25% of those winnings to the US government. Is this correct? Could anyone shed some incite on this for me?

I need to know how much I should be saving and what not. It would really help my "bankroll plan."

Or you could emmigrate and become a UK citizen and pay no tax but be hammered by the crappy $/£ exchange rate and conversion charges at neteller/your bank

*Not to hijack the thread*

Felonius M, have you thought about converting your Neteller account from ££ to $$....

I am in the process of doing this now......to cash out, you will still get ££ as you have a UK address but it stops u getting conversion charges on deposits and withdrawals....


I apologise if this looks like a wierd first post but I have been lurking for about a month or so now and have decided that I would post on here as there is some excellent advice, especially with regards to Pokertracker....and strategy....


So this, is an abstract hello to all members of the forum....

TheClubrep

WC is correct, as a pro player one has to pay quarterly. The IRS wants you to keep records which include date, win/loss, address of casino, table number. They want this information for every session and because they want table number - if you move tables because of a must move or something - they consider that the end of a session and the beginning of a new one.

And Im sure your records are exact (he asked sarcastically)?

Thanks for the tips guys. Paying quarterly is gonna suck . Do you have any idea what kind of percentage goes out to the government?

I've also read (from someone who was audited) that they don't like electronic records, and only accepted his spreadsheet grudgingly after telling him they wouldn't.

I would assume it gets taxed at normal income tax rates, which depend of course on how much you make.

I doubt I'll get audited, but if I do I have no other record than my spreadsheet. =(

How do you guys get your money out? If gets to your bank account they will know especially if it is a lot of money.

They will know? You think the IRS montors bank accounts?
The last I heard, any financial transaction $10,000 or more automatically gets flagged. What does flagged mean? I dont really know, other than the fact that the transaction goes on a list so if anyone ever wants to look into it they can. But that doesnt mean the IRS is looking at every flagged transaction. The list is used by law enforcement officials to track down money launderers and terrorisits and things like that.

Besides, who transfers that much at one time? I dont think there is any system for flagging transactions that accumulate up to any certain set amount.

If youre not a pro player, I cant see how the IRS would ever know anything about you winnings, and without a 1099, how could they ever prove what you won or lost?