Poker Forum

Topic

The Poker Taxman Cometh

Because of the massive amount of publicity surrounding this year's World Series of Poker, it seems as though the people watching the sport for the first time think that champion Australian Joe Hachem...

More

Author

Message

adrian
Beginner

Posts: 16

Joined: 26 Feb 2005
Add as Friend Send Message

Spam Quote Reply

Posted: 22.07.2005, 09:12

Australian Tax Office (ATO) have never won a case with tring to get a pro-punter to pay taxes on their winnings,so they have giving up tring..Maybe with such a big win, they will try again

But two things going for joe.
1 he has a job (which means he has not been living off poker)
2 no body has ever heard of him (he has never won anything)

If the ATO do win, then next year I'm becoming a pro player, and travelling all around the world play and staying in the best hotels in the world

brec
Beginner

Posts: 11

Joined: 18 Jul 2005
Add as Friend Send Message

Spam Quote Reply

Posted: 24.07.2005, 11:40

"In the U.S., if a player cashes (receives any kind of payment) in a tournament, he or she must legally pay 30 percent tax on the net profit."

Huh? What law is this? In the U.S., gambling winnings of all kinds are subject to normal income tax, but I've never heard of a special 30% tax. Furthermore, contrary to what is stated in the article, as a U.S. citizen I've never had anything withheld by the tournament venue from tournament winnings. I have cashed in WSOP, WPT, and other events.

Andres_Burget
Beginner

Posts: 6

Joined: 24 Jul 2005
Add as Friend Send Message

Spam Quote Reply

Posted: 24.07.2005, 15:52

That taxation thing is absolutely strange (not the correct word) - one person from our club was 7th in a major US tourney and won 98 000+ USD (10K buy-in) and had to pay 36% tax on his winnings - even though in our country (Estonia) there is NO tax on gambling win at all for people playing! I wonder why people still go to US to play then? What of cashgame wins then? Also taxed?

brec
Beginner

Posts: 11

Joined: 18 Jul 2005
Add as Friend Send Message

Spam Quote Reply

Posted: 24.07.2005, 16:16

There is a 30% wittholding of some gambling winnings that applies to non-resident aliens from countries without an applicable treaty. <http://www.irs.gov/businesses/small/international/article/0,,id=106252,00.html>
The statement in the article -- the one I quoted in my previous comment -- is false.

Caldwell
Administrator

Posts: 38

Joined: 31 Jan 2005
Add as Friend Send Message

Spam Quote Reply

Posted: 24.07.2005, 22:26

The rule discussed in the article is for residents of foreign countries. I watched scores of players cash in the WSOP that were from foreign countries (the cash out desk was right next to mine). Often times near riots would break out because a player would have to have 30% of his winnings withheld, unless he had an ITIN number. Here is an IRS link that does a (slightly) better job of explaining it.

http://www.irs.gov/businesses/small/international/article/0,,id=106252,00.html

adrian
Beginner

Posts: 16

Joined: 26 Feb 2005
Add as Friend Send Message

Spam Quote Reply

Posted: 26.07.2005, 11:35

Andres

He should be able to get that back as a nonresident foreigner..

Posts:

Your opinion

Special character sets - write them and it will be turned into an icon:

:)
:\|
:D
(d)
(l)

:-)
:-/
:E
(e)
(m)

:-]
:*
:F
(f)
(o)

;)
(+)
:G
(g)
(p)

:(
(-)
:H
(h)
(r)

:-(
:A
(c)
(y)
(w)

Spotlight

Sign up to Full Tilt Poker using our special PokerNews links, use our bonus code PKRNEWS and get an incredible 100% sign up bonus up to $600. You will also be eligible for our exclusive freerolls and promotions that are on offer, as well as a chance to play with some of the worlds biggest name players, including Phil Ivey and Patrick Antonius. Download

Freerolls

PokerNews Specials

Nearest Special poker Freeroll:

MANSION POKER $500 freeroll
Starts in 19 hours 17 min.

POKER 770 $5,600 freeroll
Starts in 1 day 18 hours 47 min.

POKERROOM.COM $2,000 freeroll
Starts in 1 day 19 hours 2 min.

PACIFIC POKER $500 freeroll
Starts in 2 days 19 hours 17 min.

BWIN POKER $500 freeroll
Starts in 3 days 19 hours 2 min.

Spotlight

Download Titan Poker via our unique PokerNews links, use our marketing code POKERNEWS and get $50 free when you make your first deposit. Also enjoy access to our exclusive monthly $2,500 freerolls as well as tickets to some of the biggest offline events in the world such as the World Series of Poker and the Aussie Millions. Download

Editor Choice Blogs

Spotlight

The PokerNews Cup Australia is back. This year promises to be even more successful than last year with several sites already running exclusive freerolls and satellite campaigns. Sign up through PokerNews and be eligible for these great events, and hopefully we will see you down under in October.

Poker News

Topic

The Poker Taxman Cometh

Your opinion

Freerolls

PokerNews Specials

Editor Choice Blogs

Subscribe to our free newsletter

Member Login