Your Questions About Poker
Thomas asks…
What is my responsibility to income taxes as a professional poker player?
I have been playing poker professionally for the past few months and semi professional for awhile before that. I’m wondering what my responsibility is going to be to income taxes? Obviously the government is going to wonder how my house payment is being paid every month when I’m not showing any taxable income. What am I going to have to do come next tax season? Would it be a good idea to somehow launder my income by opening up a front business? Any advice will be appreciated.
Thanks in advance!!
admin answers:
If you are a professional gambler, i.e you derive a substantial portion of your income from gambling activities on a regular basis, then you file as self-employed and report your earnings and expenses on Schedule C and pay the self-employment tax via Schedule SE.
Gambling winnings are reported to the IRS via Form W-2G so they will be looking for them either on line 21 of Form 1040 (for the casual gambler) or Schedule C (for the professional gambler).
Causal gamblers can take a miscellaneous itemized deduction on Schedule A for gambling losses up to the amount of reported winnings if they keep METICULOUS records. Professional gamblers report their wagers — typically the „nut“ going into a tournament — as a business expense on Schedule C. The record-keeping requirements are similar for the pro.
There are a couple of significant differences beyond the deductions of losses. Casual gamblers do not pay Social Security or Medicare taxes on their winnings as they are not treated as earned income. (Nor do they get any benefit from them at retirement time or if they become disabled.) Professional gamblers do pay the Social Security and Medicare taxes. (But they DO get benefit from them when they retire or become disabled.) Professional gamblers can also deduct other related business expenses such as travel, hotel, 50% of necessary meals, etc. That the casual gambler cannot deduct.
There’s no need to set up a sham company to „wash“ the income. If you are a professional gambler then you ARE a business by IRS definition. Any attempts to build walls around what you are doing will only bring unnecessary attention down upon you if they see it as suspicious. Why make something innocent appear suspicious? As long as your gambling activity is legal, i.e. Sponsored tournaments in venues where gambling is legal, there’s no need to hide the fact that your income is from gambling.
Lizzie asks…
Should i go to my friends strip poker party?
Well its not official yet, but he thinks his parents are gonna be gone. So he’s planning a strip poker party. There will be girls in case your wondering. But i have no idea how to play poker. But should i go anyway?
admin answers:
How old are you? Anyway ya you should go…wear a t-shirt and shorts under you shirt and pants. And make sure you shave certain areas if you know what I mean…most girls don’t like to see hair. And look up poker hands before you go. Like (2,3,4) of a kind, royal flush, straight flush. And make sure you got rubber on you just in case you make a lady friend.
Sandy asks…
What is the usual poker chip weight in casinos and card rooms?
I’m trying to get a nice set for a weekly game and want a casino feel. I’m just not sure on the typical poker chip weight. 10g, 11.5g, 13.5g?
admin answers:
The industry standard, Paulson chips come in at around 9 or 10 grams. They are, however, the closest thing to an actual clay chip you can have and cost a dollar or more per chip. They are also the suppliers of chips to most casinos. I have not seen any other chips that stack well. Get a sample set of Paulsons and you will see what I mean. I wouldn’t worry so much about the weight of the chips but about the look, the feel, and how much you enjoy using the chips. My recommendation is the Dunes commemorative chips because they are 1/3 of the cost of Paulsons and look great.
George asks…
How to do a class presentation about poker?
I am going to have a presentation about texas hold em or poker and I need to teach the class the basic rules. Anyone got any ideas or suggestion on what to teach the class? My presentation has to be 10 mins long. Also I want the class to participate in a 5 min activity that has to do with poker like playing a game or something.
admin answers:
Hello. Texas Hold em poker is certainly an interesting topic to discuss with your class and you won’t be short on things to teach them. There are many places to learn the basic rules and other useful information. If you go to http://www.poker777.com/poker-rules.php#games you will find an overview of the rules with another link to take you to the full rules. At this site you can also find some ways to get your class to interact with your presentation maybe as it is a short activity you could demonstate the dealing of the cards in detail explaining big blinds and small blinds and other aspects of the deal such as cutting the deck.
Daniel asks…
Should I start playing poker for a living?
I have been a very successful on-line poker player for the last three years. I play Multi Table Tournaments exclusively on Full Tilt and it has been very profitable. I currently HATE my „real full time job“, however, the security of a „real job“ has kept me there. I’d like to hear some stories from people with the background and experience please.
admin answers:
It may seem like a good idea at first but realistically..in the long-term the stress and worries will be too much to carry.
Despite how successful you are at poker now, the income will never be as steady as a real full time job.
My advice is to KEEP the security of your job as boring as it may be..until you come across something that is more enjoyable/profitable
all the while keeping online poker as a „side business“ or hobby.
Powered by Yahoo! Answers
