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View Full Version : Do I have to Report Winnings for Tax Purposes?


henderson
07-22-2010, 07:21 AM
Hello everyone, I play on Full Tilt and I've started winning a
decent amount of money and I was just wondering if I have to report
winnings eventually if I start winning a lot??? The strategy card counting is based on probabilities, and taking into account all the cards in the deck or suits. However, there is a small flaw in this strategy: after a few hands the dealer discards ostashviesya nesygrannye cards, and the next hand has been going on from the re-mixed pile. Before the dealer shuffle cards dropped in such a way can be a good half, if not three quarters of all cards. That is, among the discarded cards could prove to be the ones who carried the advantage igroku.Tak as a system of counting cards considers the likelihood of putting cards in 10 points based only on maps that are still in the deck.

The overall scoring system assigns the card in the deck of some importance:

All cards from twos to sixes have a value of +1.
All cards from a dozen aces to have a value of -1.
Sevens, eights and nines are set to 0.
As the player sees the play (and subsequently dropped) card, it adds up the values of these cards. As the starting point is 0, this index can take both negative and positive values. If the first distribution of the deck has three (+1), seven (0), lady (-1), aces (-1), ten (-1) and Jacks (-1), the current account will be -3 (minus three) . The higher the current account, the more low cards have been played, which means a higher percentage of loss of high cards. Why is it important for us? System of a basic strategy based on the assumption that subsequent card is worth 10 points.

So how do you count cards, and change your bet.
A typical system player who enjoys a system of counting cards, makes the minimum bid first game. When the account reaches a certain level, such as 4 and above, the player increases the bet, or pursuing an aggressive game to the doubling of rates. The higher the score, the higher your bid until the deck, as they say, hot. If the account falls below zero or a deck is shuffled, it is better to return to the minimum rate.

I am a filthy spammer and wont spam HoldemFreaks again.

Adaon
07-22-2010, 11:33 AM
Funny you should ask, I am a tax preparer who has researched this. According to the IRS:

Your poker winnings (gross, not net) are effectively treated as hobby income, which means your winnings are reported as "Misc income" (line 21 of form 1040), and will be taxed at your normal rate. Losses are then supposed to be deducted on schedule A (Itemized deductions) only up to the amount of your winnings. So you can not run a loss for the year. It is also required by the IRS that you report all winnings.

Now, that's the official position, but I've never actually seen someone do it like that, and it is nearly impossible to catch. But one word of advice: If you put money in to a bank account, there's a record of it somewhere that probably goes to the IRS.

rduckham
07-22-2010, 06:22 PM
As I understand it, if you win 3,000 or more in a tax year, you are required to make note of your winnings on your tax forms, but you can take your losses off your winnings if you can document your losses.

skippy76
07-24-2010, 11:45 PM
sorry rduckham but thats not right. the tax laws are very unfair to gamblers. As Gene said, you are supposed to report everything you win. Even if you play a 5 hand session and win 2 cents you are supposed to report it. what sucks is if you win a Million dollar prize and say for some reason you lose all of it... you still have to report the million, and that sets your tax bracket, then you get to deduct. i.e. you make 50k a year in your job....you win 1 mil at a casino.. you have to report 1,000,050.00 as your income for the year wich sets you in the highest tax bracket. Then you deduct the 1mil loss, you still have to pay the higher tax on the remaining 50k.

i think what you have in mind is that casinos will with hold taxes on winnings over 3k

Luckymonkey
11-19-2010, 03:00 PM
this is spam