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  #1  
Old 06-10-2007, 07:29 AM
AbZurrrd AbZurrrd is offline
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Default Taxes for a non-US citizen present in the US

I have three important questions that are really bothering me and would really appreciate some help:

1 - I am an international graduate student here in the US, and therefore I am paid by the University and pay taxes etc...everything is clear except for poker. How can the IRS suspect that I am winning/losing money playing online poker? Do they have any way of knowing? What's the risk for me if I don't report it(considering that I'm not a citizen and that poker is not my real source of income)?

2 - On the other hand, where SHOULD I pay taxes? In the US or back home (treaty country in Western Europe)? it's pretty confusing...my understanding is that placing wagers from the US implies paying US taxes...but at the same time, I also play when I'm home...

3 - [that one is easy] which amount is considered a threshold in terms of poker earnings (by the IRS)?

Thanks a lot for any help!!!
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  #2  
Old 06-10-2007, 01:23 PM
TheMetetron TheMetetron is offline
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Join Date: Oct 2004
Location: Blog Updated Dec 1st
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Default Re: Taxes for a non-US citizen present in the US

[ QUOTE ]
I have three important questions that are really bothering me and would really appreciate some help:

1 - I am an international graduate student here in the US, and therefore I am paid by the University and pay taxes etc...everything is clear except for poker. How can the IRS suspect that I am winning/losing money playing online poker? Do they have any way of knowing? What's the risk for me if I don't report it(considering that I'm not a citizen and that poker is not my real source of income)?

2 - On the other hand, where SHOULD I pay taxes? In the US or back home (treaty country in Western Europe)? it's pretty confusing...my understanding is that placing wagers from the US implies paying US taxes...but at the same time, I also play when I'm home...

3 - [that one is easy] which amount is considered a threshold in terms of poker earnings (by the IRS)?

Thanks a lot for any help!!!

[/ QUOTE ]

Pay the USA when you play in the USA. Pay whatever country you are from when you play there. There is no threshold, you owe for any winnings. It's probably hard for them to find out if you don't run the funds through the USA at any point. Penalties will most likely be back-interest + penalties. Possible, though rare, they send you to prison if it is found to be fraudulent (intentional).
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  #3  
Old 06-11-2007, 10:53 AM
MexKrax MexKrax is offline
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Default Re: Taxes for a non-US citizen present in the US

I am also an international graduate student in the US (I assume that you are on an F1 Visa and are filing taxes as a non-resident alien). The tax law is not very clear in this area. As a non-resident alien you only need to pay on US-sourced income. The key question is "Are online poker winnings US sourced income?" Arguments can be made both ways. The fact that the games are run on servers overseas would argue that it's not US sourced. Of course you're physically sitting in the US when you play so that could argue that it is US sourced income.

For the last two years I've considered my online poker income as non-US sourced income. Other people I've talked to in this same situation have handled it the same way I have. However, there may be unique provisions in the tax treaty with your home country that I am not aware of. Also I can't give you any advice about whether or not you would owe taxes in your home country or not. Luckily for me my home country is Canada where gambling winnings are not taxed.
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  #4  
Old 06-11-2007, 11:38 AM
xxThe_Lebowskixx xxThe_Lebowskixx is offline
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Default Re: Taxes for a non-US citizen present in the US

only a retard would pay
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