Is it considered income if I haven't withdrawn the profits from the poker site? Yes.

ĭo I have to pay taxes if online gambling is considered illegal? Putting aside the issue of whether online gambling is illegal, you are still required to pay taxes on illegally-earned income.

You may also get a credit on your US taxes for any foreign taxes paid so you won't get double-taxed. It is possible to lower your taxes if you qualify for a 'foreign earned income exclusion'. residents are required to pay tax on all worldwide income, from anywhere in the world. ĭo I have to pay taxes on the income since it came from overseas? Yes.Schedule C - Business Income (for professional players to file their net poker profits as income)ĭo I have to pay taxes on gambling winnings? Yes, gambling winnings are fully taxable.Schedule A - Itemized Deductions (for amateur players to see where to file their gross losses to offset their gross winnings).Publication 552 - Record-keeping (for notes on what kind of records you need to keep).Publication 535 - Business Expenses (for professional players looking at expenses).Publication 529 - Miscellaneous Deductions (more information about documentation for profits and losses).Publication 463 - The rules about certain expenses such as travel and entertainment (for professionals).

Publication 334 - About small business expenses.It is similar to at-home stock-traders in the 1990s. This lag in the development of the tax law is natural whenever any unconventional activity suddenly becomes popular as a career. Some of the more contemporary issues relating to poker playing require analysis and interpretation since there may be no expressly-stated rules by the IRS about how they should be handled. Some of the questions related to poker taxes have clear answers, while others don't. It's a subject that almost no one thinks about until tax time gets close though. The subject of paying taxes on poker is one that affects millions of poker players. (3) If you need help, talk to a tax professional. (1) The information on this page is related to US taxes.

Avoid paying taxes poker winnings