This should end all of the false claims about paying US taxes on poker

[bcubed72]

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Take an online SNG player, who plays 30 $100 SNGs a day. He could have $100,000 in income and $80,000 in losses.

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This goes back to the issue of what constitutes a "session." The predominant view I've seen here is the most restrictive: each SNG=1 session, regardless of number played during one time at the computer, multitabling, or whatever.

Tis makes a certain amount of sense in a B+M casino; after all, you sit down at a table, play, then physically get off your arse and wait for the next one. This is NOT the case of internet player who's consistently playing >= 1 SNG for 5 hours straight.

To the best of my knowlege, this has yet to be challenged in court. I'd be willing to believe that a more liberal interpretation of a session might prevail.

Note that, to get in trouble for using this definition of a session, the IRS would have to:
1. Take exception to your figures
2. Audit you
3. Challenge whatever piece of paper you show them
4. Obtain contrary information
5. Take you to court
6. Win

I plan on counting continuous time spent logged on to a website as a "session." I seriously doubt any repurcussions.

Note that the law technically requires a losing player (who may never have even cashed out) to declare winnings. Do you think 1 in 500 do so?

[Central Limit]

For B&M poker, why isn't one single hand a session? So, if I play 8 hours, and 250 hands, I should record each separately.

Because if one single hand isn't a session, then a session is determined by when I get up and when I sit down. If I get up to go to the restroom, does that end one session and start a new one? If not, then why can't I say that 8 hours of sleep was just a break in a single session rather than the dividing line between two separate sessions?

[Orlando Salazar]

If you make enough, pay some guy to find an offshore loophole and use your OSA debit card. If not, don't pay tax. Pretty simple.

[Dave2020]

If it is my first time filing as a professional, am I required to have already payed quarterly installments on my 2006 poker income?

[NickMPK]

Russ,

As a professional tax preparer, how do you advise losing recreational gamblers to report their gambling winnings/losses?

For example:
If someone takes a weeklong trip to Vegas, where they play fifteen sessions of blackjack, with a total of $10,000 in winning sessions and $11,000 in losing session, would you force them to report that $10,000 as income and then give up the standard deduction in order to offset this in losses?

What about someone who buys lottery tickets every day, with $1800 in losses and $600 in wins. Do they have to pay tax on the $600 if they want to take the standard deduction?

I think 95% of these people don't have any record of their "sessions". Aren't most people who do any gambling violating the law when they prepare their taxes?

[Wake up CALL]

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Aren't most people who do any gambling violating the law when they prepare their taxes?


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I think most people prepare their taxes correctly.

[atomicsoda]

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Aren't most people who do any gambling violating the law when they prepare their taxes?


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I think most people prepare their taxes correctly.

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OK. Almost no one declares cash wins in casinos or even keeps track or wins or losses. If they win a slot jackpot or something they pay tax on that. I am not talking about people who gamble everyday or derive income from gambling but recreational gamblers.

[RoundGuy]

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I think smart people prepare their taxes correctly.

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FYP [img]/images/graemlins/smile.gif[/img]

[Wongboy]

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I think most people prepare their taxes correctly.

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Do most people declare the following as income?

> Mistakes made by a cashier in their favor (presumably our honest tax payer did not notice this until later). BTW, if they fail to notice the cashier mistake, they are still filing their taxes incorrectly.
> Money earned through odd jobs, babysitting, etc.
> A friend who gives you $20 for gas since you drove.
> Fair value of free drinks when you forgot your wallet and a friend paid.
> All winning lottery tickets, pull tabs, etc, regardless of amount won.
> All wins from a casino playing blackjack, etc.
> The $5 bets that you won from your golf buddies.
> Fair value of frequent flier miles that you earned while taking an employer-paid business trip.
> Any other cash received which is not specifically exempted from income per IRS regulations.

Alot of people will occasionally lose a couple hundred dollars gambling in a casino. I would guess that fewer than 1% of these recreational, losing players reports income for their gross wins.

I would say that almost no one prepares their taxes correctly. Most people make a good faith effort and are honest in reporting substantially all of their income.

[efficacy]

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I think 95% of these people don't have any record of their "sessions". Aren't most people who do any gambling violating the law when they prepare their taxes?

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First of all, there is no law saying that we have to pay federal income tax.