M
Mike_25
Guest
To figure how much you owe, add up all your poker wins for the year including cashouts, prizes, and buy-ins returned. Subtract your total losses. The remaining amount is considered income.
Most players owe 15-25% in federal taxes alone. So take the taxable income and multiply by the percentage for your bracket. Some states tax winnings too, so check local rates.
Keep records of wins/losses in case of an audit. You'll pay taxes quarterly or when filing your return. Without good records, the IRS will assume maximum taxability.
Many players find hiring an accountant who understands poker taxes worth their weight in gold. They'll ensure you stay out of trouble and pay what you rightly owe according to the law.
Paying taxes on poker is no fun, but avoiding them is not worth hefty fines or even jail time. When in doubt, it's best to get help from a pro.
Most players owe 15-25% in federal taxes alone. So take the taxable income and multiply by the percentage for your bracket. Some states tax winnings too, so check local rates.
Keep records of wins/losses in case of an audit. You'll pay taxes quarterly or when filing your return. Without good records, the IRS will assume maximum taxability.
Many players find hiring an accountant who understands poker taxes worth their weight in gold. They'll ensure you stay out of trouble and pay what you rightly owe according to the law.
Paying taxes on poker is no fun, but avoiding them is not worth hefty fines or even jail time. When in doubt, it's best to get help from a pro.
