% Of Taxes

[JJACKSON123 0]

roughly what percentage of income is required to give up for taxes from online winnings... ive heard 20%, for every 100 made 20 is to be given back... how accurate is that

[sholden 0]

roughly what percentage of income is required to give up for taxes from online winnings... ive heard 20%, for every 100 made 20 is to be given back... how accurate is that

X% of your winnings where X is your marginal tax rate.

[hblask 1]

X% of your winnings where X is your marginal tax rate.

To clarify that a little, it depends completely on your income. If you cash for $1K and make no other money, you shouldn't have to pay any taxes on it.If you make $250K/year at your job, expect them to take at least a third of each additional dollar you make. Unless you have lots of writeoffs.Most people are somewhere in between, generally around 20-25% if you are gainfully employed.

[MychCumstien 0]

it depends..., lol, standard poker answer. But seriously, it depends on the situation. Normally, you add your winnings into your total income for the year and report it to the IRS. You can deduct losses up to the total of the winnings, but losses can't exceed winnings.From there you look and see which tax bracket you fall under and pay accordingly. Go to the IRS website and look up the different tax brackets, and you'll find the exact percentage there. I'd say ball park 25% for federal, and state will vary by state, but expect anywhere from 5-8%. Again, it completely depends on your "total" income for the year, as that will reflect what bracket you fall into.Another interesting point on gambling taxes (I just learned this recently from filing for a big cashout): normally for any win exceeding $5000, there is a mandatory 25% with holding by the IRS. it's deducted automatically in many B and M Casinos, but online, you are still expected to pay an estimated tax if you cash big in a tournament. If you fail to do so, the IRS can charge you penalties and interest.Lastly, for the riskier types, if you are not planning on claiming your gambling winnings, understand that the IRS does not have access to your bank accounts, unless you get audited. But if you do get audited, be ready to explain "every" transaction in your account.My advice, i'm no expert, but go talk to your local IRS office and get the spiel from them. It's as I described, but if you want to hear it direct from the horses mouth, that's probably best. Soliciting tax advice on a poker forum, well... you get what you pay for, lol. GL