Poker Taxes

Colombo · #1 05-09-2007, 09:17 PM

Sorry if this isn't the right forum, feel free to move it.

Basically, I've been playing poker for awhile and I just made alot of money. I had already cashed out $30,000 (in many small checks) and I never told the government about it. However, I have a problem now. I have $60,000 online that I want to get out.

Is there a way to get this money out without paying taxes? If not, how would I go about paying these taxes? Is there anyway that I can get my taxes reduced by filing for losses (for example, i lost $30,000 in january, but it wasn't from a new deposit, just profits that I had lost).

My next question: Is the 30k that I cashed out safe? Is the government gonna go hunt that down and fine me for not paying taxes on it?

Finally, how do I apply to be a poker professional?

TheMetetron · #2 05-09-2007, 09:20 PM

Go see a CPA. You owe taxes. You can't avoid them. You will need to file amended returns for the past years.

luckybacon · #3 05-09-2007, 09:30 PM

yeah bad idea just pay taxes man

SurferEd · #4 05-09-2007, 09:47 PM

Paying future and back taxes > freaking out everytime there's a knock on the door or an envelope from the IRS in the mail.

ski · #5 05-10-2007, 08:14 AM

talk to a CPA, but unless you are living abroad or have <$10000 in expenses (non loss) you don't wanna be a pro if u can avoid it.

(I'm assuming your from the USA)

TLC · #6 05-10-2007, 08:29 AM

You've received good advice thus far -- "see a CPA" and "just pay the taxes".

I might be reading too much between the lines with your "new deposit" vs. "just profits" comment, but I want to stress that you owe taxes for the year in which you earn/win monies...not when you withdraw them from a site.