When to report online poker account.

kennywawa · #1 11-01-2007, 02:28 AM

I don't have a significant online account at the moment, less than 1K, but for the past three months I have maintained a steady increase in my online account. I have made a profit in the past 1500 games and I'm confident that I will continue to do so. At what time do I need to report taxes? Do I have to pay when I have a certain amount in my account or do I have to pay taxes on what I withdraw?

Mitch Evans · #2 11-01-2007, 02:53 AM

You need far too much education on this subject for anyone to delve into this topic for you on a forum. Go hire a CPA.

Kurn, son of Mogh · #3 11-01-2007, 09:39 AM

If you are a US citizen, you are required to file a federal tax return (and a state return if your state has an income tax) no later than April 15 for the prior calendar year.

For gambling income, you report the total of all winning sessions as *other* income on Form 1040, and you report all losing sessions as an itemized deduction on Form 1040, Schedule A.

Please note that IRS Publication 529 expressly prohibits reporting the net of wins - losses as income.

If you need any more detail, speak with a tax accountant.