Question on winning a large amount of money online

inopethflames · by **inopethflames** » Mon Mar 24, 2008 3:48 am GMT

i was just wondering about if you won a poker tournament online for say 200k. does the poker site like pokerstars deposit 200k directly in ur account, or do they take taxes out of it right away? or do they send you a tax form at the end of the year? or are you just supposed to report it urself under gambling wins.

also do u think there would be any problem if say you did win 200k and deposited it from pokerstars to your bank account, would a bank like red flag that deposit or be suspcious about it? because i mean it is legal to play poker online right, but ur not supposed to transfer money online, but if you do an echeck, is that illegal? my question is just that i wouldnt want to win a big amount of money like that and then get in trouble with the irs or something. anybody have any knowledge on this subject? thanks!!

xDiamond_CutteRx · by **xDiamond_CutteRx** » Mon Mar 24, 2008 5:29 am GMT

1. Yes, they deposit the full amount in your account with no taxes taken out.

2. When you transfer it back to your bank, it is hard for them to tell it came from a gambling site since it does not say "PokerStars" on the check. If you're worried about an eCheck, get a paper check. It does not have a gambling logo anywhere and the bank has no reason to deny a valid routing number.

3. As long as you account for the deposit, declare your winnings as gambling revenue, and pay your taxes, I see no reason why you should get in trouble with the IRS.

suitedaces84 · by **suitedaces84** » Mon Mar 24, 2008 5:38 am GMT

Laws regarding online poker are blurry and vary from state to state. If you won 200k I'd recommend talking to a CPA or tax professional.

I wouldn't worry about anything if you pay taxes on it. Audits are not done at random. There's no subtle way to get 200k into your bank account. And if you don't pay taxes on it, you're a big favorite to catch hell from the IRS.

crack · by **crack** » Mon Mar 24, 2008 8:57 am GMT

Win the 200k first and worry about the details later.

MrDarling · by **MrDarling** » Mon Mar 24, 2008 9:09 am GMT

This problem really keeps me awake at night.
In fact I believe one of the main reason I do not win big sums of money playing poker is the fact that I don't know what to do with the money once I get it.

Poker is rigged.

odlozilik · by **odlozilik** » Mon Mar 24, 2008 11:01 am GMT

If you win, move to Serbia (or the Europe at least), no taxes here!

Ensano · by **Ensano** » Mon Mar 24, 2008 11:35 am GMT

odlozilik wrote:If you win, move to Serbia (or the Europe at least), no taxes here!

not a bad idea... same in canada i believe... supa might be able to correct me on this... so say you won 200k... find an apartment just north of the border for a few months then withdrawal... you only "earn" the money when you cash it out... even if it's 2 years later

MJJ · by **MJJ** » Mon Mar 24, 2008 11:49 am GMT

Canadians pay higher income taxes than Americans (I believe in the neighborhood of 55%)
Also, it doesn't matter if you rent an apartment on the moon, taxes are based on where your primary residance is. It's not real easy to change that to a different country.

Ensano · by **Ensano** » Mon Mar 24, 2008 11:52 am GMT

we don't pay taxes on gambling income... never have i claimed any income from the money i've won by poker or gambling oriented..

MJJ · by **MJJ** » Mon Mar 24, 2008 11:54 am GMT

I stand corrected then.

supafrey · by **supafrey** » Mon Mar 24, 2008 12:02 pm GMT

Ensano wrote:
odlozilik wrote:If you win, move to Serbia (or the Europe at least), no taxes here!

not a bad idea... same in canada i believe... supa might be able to correct me on this... so say you won 200k... find an apartment just north of the border for a few months then withdrawal... you only "earn" the money when you cash it out... even if it's 2 years later

this is a felony

Ensano · by **Ensano** » Mon Mar 24, 2008 12:04 pm GMT

huh.. i guess you do learn something every day

MJJ · by **MJJ** » Mon Mar 24, 2008 12:12 pm GMT

also (according to quick google search) if the $ from gambling is your primary source of income, it is taxable in Canada. In your example, 200K would be taxed unless you make a lot more than that somewhere else.

Ensano · by **Ensano** » Mon Mar 24, 2008 12:27 pm GMT

MJJ wrote:also (according to quick google search) if the $ from gambling is your primary source of income, it is taxable in Canada. In your example, 200K would be taxed unless you make a lot more than that somewhere else.

i honestly doubt that it would be an issue... if i worked for a company for the last 10 years drawing the same regular pay... then one month happen to inthe lottery (say 90k) there's no way they could argue that those lottery winnings are my primary source of income...

but on the other hand, if I had no job and was a professional gambler then i'd assume from what you found that i would have to pay taxes on it..

Felting · by **Felting** » Mon Mar 24, 2008 8:02 pm GMT

inopethflames wrote: because i mean it is legal to play poker online right?

Except in the state of Washington, where it is a class C felony.

Otherwise, ditto what the other respondents said.

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