My First Withdrawal, Do I have to pay tax?

[Niediam]

Assuming you are from the US...

Tax liability occures when you win the money. Whether you withdraw the money or not has nothing to do with it.

How it basically works. You owe Federal taxes on the amount of money equal to the total of all your winning sessions. If you wish you have the option to deduct the total of your losing sessions by itemizing your deducions. For most state taxes it works the same way but there are dozen or so states where you are not allowed to deduct your losing sessions.

There have been a ton of threads on this in the Legislation and Internet Gambling forums if you care to do a search.