Online Poker Legal in Michigan, United States?

[hodie86]

I really wanna play online poker for real money at pokerstars, but i've heard contradicting forums about the legality of the matter. So, can i play for real money in Michigan, United States on pokerstars?

[Niediam]

Online gambling is illegal in the state of Michigan.

However so far it is about as illegal as jaywalking or going two miles an hour over the speed limit - aka they don't go after people for doing it.

[grapabo]

A lot of states either a) have explicitly made online poker illegal, or b) define all forms of gambling illegal except for specific exceptions, and without a specific exception for online gambling, it isn't authorized.

Granted, there aren't that many states that do the former and many of the latter states' laws don't address online gambling issues, but you're not going to find at this time a specific approval of online gambling in the law.

[bkellog1]

The chance of you getting prosecuted are about as good as you winning the Powerball lottery.

[hodie86]

We'll if thats the case, how do i go about reporting my winnings without getting in trouble. If it is illegal, isn't it stupid to report my winnings in something that is illegal to do in the first place?

[Niediam]

[ QUOTE ]
We'll if thats the case, how do i go about reporting my winnings without getting in trouble. If it is illegal, isn't it stupid to report my winnings in something that is illegal to do in the first place?

[/ QUOTE ]

The IRS doesn't tell other government agencies about your illegal monitary gains. Plus you just have to put down that you have gambling winnings - not ONLINE gambling winnings.

[bkellog1]

You claim your online winnings the same way as you would claim B&M winnings. Currently the IRS does not have a way of tracking online profits.

[DMACM]

[ QUOTE ]
You claim your online winnings the same way as you would claim B&M winnings. Currently the IRS does not have a way of tracking online profits.

[/ QUOTE ]

Does doing this increase the chances of an audit or investigation as to the details of where this money is coming from. Are you experienced in terms of how best to file and how much information is needed on the tax forms? I know it is best to file if you are making money im just curious as to the details of how people do this?

[Niediam]

[ QUOTE ]
[ QUOTE ]
You claim your online winnings the same way as you would claim B&M winnings. Currently the IRS does not have a way of tracking online profits.

[/ QUOTE ]

Does doing this increase the chances of an audit or investigation as to the details of where this money is coming from. Are you experienced in terms of how best to file and how much information is needed on the tax forms? I know it is best to file if you are making money im just curious as to the details of how people do this?

[/ QUOTE ]

I would assume having gambling winnings (especially if they are a significant amount) would increase the chances of you being audited but I don't have any hard evidence to support that.

You put down the total amount of your winning sessions on the misc income line and then if you want you can itemize your deductions and deduct the total amount of your losing sessions up to the amount of your winning sessions.

[bkellog1]

If you get audited by the IRS it is because they have reason to believe you committed tax fraud. The IRS doesn't audit you just because your a gambler. Hell they even have a line to report illegal income.

[Niediam]

[ QUOTE ]
If you get audited by the IRS it is because they have reason to believe you committed tax fraud. The IRS doesn't audit you just because your a gambler.

[/ QUOTE ]

This isn't correct. The have some sort of scoring system based upon various things in your return and if your score ends up being high enough you get audited. I'd assume they also audit people if they have something which looks especially strange but thats just a guess by me.

I also read somewhere once that they audit X% of all tax returns at random each year in addition to the above but I do not know if that is true or I was just reading BS.

[PokerBility]

duh