Online Poker and taxes

[Mobain]

I am curious about if taxes are withheld from online winnings by the sites themselves, i.e. Ultimatebet.com. Do they let the IRS know how much a person has won at the end of the year via form 1099? I would appreciate any general info on this matter.

Thanks, David

[Mobain]

I got an e-mail from Ultimatebet.com saying they do not withhold any taxes, nor do they file anything with the IRS.

Mobain

[Adamm]

I'm still gonna try and report my losses!

[Dave B]

I am sure you know this, but you can not write off gambling losses. You can only use them to offset any gains. However, you might make an argument for writing off trips to Vegas, Atlantic City, etc as business expenses if you claim that you are a professional poker player. In that case, you had better claim some earnings from poker or expect an audit.

My aunt has hit some big jackpots that are reported. In the years she does, she makes large ATM withdrawls from the casino whenever she is there. She keeps the receipts and claims these as losses to offset the taxable gains.