taxes on big tourney winnings

[chico247 0]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

[Dirtydutch 8]

search the forum, this has been done 10,000,000 times.

[Meatwad 0]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

Side note: WSOP winner Hachem is Australian and his country might tax him 47%. US already is holding 6% of his winnings.

[yeffy 0]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

Ummmm.....the money my employer pays me was income that he made providing services so technically by your thinking my income shouldn't be taxed since his income was already taxed.

[yeffy 0]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

Side note: WSOP winner Hachem is Australian and his country might tax him 47%. US already is holding 6% of his winnings.

Side note to your side note....try 30% not 6%

[Spademan 94]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

Ummmm.....the money my employer pays me was income that he made providing services so technically by your thinking my income shouldn't be taxed since his income was already taxed.

Right. Poker is an investment.If you spent some of your job income, which has been taxed, on an investment, the investment tripled in value and you sold it, you'd still get taxed.Same principle.

[Meatwad 0]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

Side note: WSOP winner Hachem is Australian and his country might tax him 47%. US already is holding 6% of his winnings.

Side note to your side note....try 30% not 6%

Maybe I should say casino? http://www.heraldsun.news.com.au/common/st...%5E2862,00.html

[Uppie_ 0]

really no princples involved in it you get taxed on it cause the goverment says you do and you can't really argue with them about it, all you can do is try to change it. ie get it so all hobby income in no taxable but that opens up a whole big can of worms so guess you just have to give them money. oh and how much depends on what tax bracket your in.

[Blacksheep626 0]

Side note to your side note....try 30% not 6%The US Government can only tax those who are legal residents. So seeing as how he is not a US resident but an Australian one and how he was here just for a tournament than technically the US cannot tax him the 30%.

[CodyHartman 0]

WOW that's NUTZ. You would think you would only have to pay taxes to the country you reside in, not both. It just dont seem right to me that he gets bent over by 2 countries by paying taxes to both.Anyone KNOW more about this???

[Smasharoo 0]

30% but most people get some of it back.Hae I metioned that tournaments are for suckers recently?

[lboarts 0]

Yes, you have smash, lol. I must be the biggest sucker on the net, lol. I would retort by saying ring games are for suckers, but I hear people make alot of money at them.

[jonnyz 0]

WOW that's NUTZ. You would think you would only have to pay taxes to the country you reside in' date=' not both. It just dont seem right to me that he gets bent over by 2 countries by paying taxes to both.Anyone KNOW more about this???[/quote']Depends on the country, some have tax agreements with the US and in that case you get the whole amount, no withholding but you usually get nabbed back home. Other countries like Canada there is no tax agreement with the US so the IRS takes 30% but no taxes back home. Either way, nice problem to have.

[brian67 0]

Well ring games are certainly not for suckers, you guys said it yourself about all the taxes. You think you can trace ring game earnings well enough to tax? It's extremely difficult, if not impossible in most cases.

[CodyHartman 0]

This reminds me of "Shawshank Redemption." The scene where Andy tells Hadley how he could keep the entire amount of money his brother left him. I wonder if something like that still exits here in the states today.

[braminc 0]

30% but most people get some of it back.Hae I metioned that tournaments are for suckers recently?

maybe you think tournaments are for suckers cause youve never won one before?i guess that means you think Doyle Brunson, Phil Ivey, Daniel Negreanu, Barry Greenstein, Phil Hellmuth, Hasan Habib, Sam Farha, Gus Hansen, Dan Harrington, Amir Vahedi, Chris Ferguson, Howard Lederer, Jennifer Harman, John Phan, Michael Mizrachi, Allen Cunningham, Ted Forrest, and at least 100 other professional poker players are all SUCKERS. since they play tournaments so frequently. the funny thing is, all these guys plus a couple thousand more could manhandle you at ANY cash game you choose. so instead of PURPOSELY TRYING to convince everyone what an idiot you are, it wouldnt hurt to at least pretend like you have a clue half the size of your overblown ego.

[PA32R 0]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

Ummmm.....the money my employer pays me was income that he made providing services so technically by your thinking my income shouldn't be taxed since his income was already taxed.

No, not true. To your employer your wages are an expense. He (she) is taxed on the net of income minus expenses so he (she) has not paid taxes on your wages.

[PA32R 0]

Hae I metioned that tournaments are for suckers recently?

For some reason it does have a familiar ring...

[Marchione 0]

in most cases pro poker players incorporate Themselves.So when they eat and live it can be writen off.I would even make a nice little bet Daniel had been incorporated.

[AgroPoker 0]

I would really like to know what percentage the government takes of the prize money in a major tournament. I would also like for someone who either works for the government or who knows our tax laws well to explain to me why there is a tax on money that has already been taxed??? It does not make sense to me that a bunch of people can throw income that has already been taxed into a prize pool only to have it taxed again when it is split up differently. Chico

Ummmm.....the money my employer pays me was income that he made providing services so technically by your thinking my income shouldn't be taxed since his income was already taxed.

No, not true. To your employer your wages are an expense. He (she) is taxed on the net of income minus expenses so he (she) has not paid taxes on your wages.

You missed the point: All of there income came from customers that have already pay taxes on there money.

[AgroPoker 0]

It’s a vicious circle in the US were all the money we get taxed on has already been taxed when the previous person earned it.

[Batch 0]

30% but most people get some of it back.Hae I metioned that tournaments are for suckers recently?

I believe I have heard you say this before.

[princeof56k 0]

Most people here have mentioned federal taxes, but I would also assume state taxes come into play as well. While I dont know a lot about state taxes (since I'm in Texas), I would assume that the state where you reside would want to tax the winnings. The state where you won is irrevalent. You winnings will count as income and the state will want to tax it as such.

[DeadStroke 0]

Most people here have mentioned federal taxes, but I would also assume state taxes come into play as well. While I dont know a lot about state taxes (since I'm in Texas), I would assume that the state where you reside would want to tax the winnings. The state where you won is irrevalent. You winnings will count as income and the state will want to tax it as such.

All states are different, but most states handle it like Michigan does.Say you're a Texas Resident and you win money at a Michigan Casino. By law, you are supposed to pay taxes on the money you win in Michigan. Now say that a Michigan Resident heads to one of the boats in Illinois and wins 10,000. He would pay tax on his winnings to the State of Illinois and when he filed his Michigan return, he would receive a credit for the tax that he paid to the State of Illinois. Now, say that that same inidividual won 10,000 in the State of Nevada. Nevada doesn't have a State Income Tax, so they would not have to file a Nevada Return and consequently when he filed his Michigan return, he'd pay taxes on the full $10,000 and receive no credit because he didn't pay tax to another State. Same goes for the Federal Return, someone would receive a foreign tax credit if they had to pay tax to a foreign country.For people like Daniel or anyone else who's income is derived from poker and consequently treat that income as a business, it's a whole different ball game on how to apportion the income and expenses, etc. . . That's why he keeps such good records of his traveling expenses and gambling sessions (although if I was Daniel, I'd start using a credit card to pay for things instead of Cash, it's easier to record the transactions).

[lboarts 0]

30% but most people get some of it back.Hae I metioned that tournaments are for suckers recently?

maybe you think tournaments are for suckers cause youve never won one before?i guess that means you think Doyle Brunson, Phil Ivey, Daniel Negreanu, Barry Greenstein, Phil Hellmuth, Hasan Habib, Sam Farha, Gus Hansen, Dan Harrington, Amir Vahedi, Chris Ferguson, Howard Lederer, Jennifer Harman, John Phan, Michael Mizrachi, Allen Cunningham, Ted Forrest, and at least 100 other professional poker players are all SUCKERS. since they play tournaments so frequently. the funny thing is, all these guys plus a couple thousand more could manhandle you at ANY cash game you choose. so instead of PURPOSELY TRYING to convince everyone what an idiot you are, it wouldnt hurt to at least pretend like you have a clue half the size of your overblown ego.

LMAO, very well said