How to Get Online Poker Tax Information
U.S. residents who play poker online are required to report gambling winnings or losses to the Internal Revenue Service, even though most poker websites are based in other countries. The IRS offers basic tax guidelines regarding gambling, though online poker players will need to consult additional resources to ensure that they are filing correctly.
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Instructions
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Review IRS guidelines concerning gambling by downloading Publications 529 and 552. You must report gambling winnings on Form 1040, Line 21, and you cannot deduct gambling losses which exceed gambling winnings. Keep a complete diary of your gambling sessions and supporting documentation. There are online poker logbooks available for purchase to document your sessions.
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Consult a tax accountant, ideally an enrolled agent (EA). An EA is certified through the IRS as an accountant specializing in taxation. You can also search for tax accountants online who work extensively with poker players, like certified public accountant and author Ann-Margaret Johnston, enrolled agent Russell Fox and enrolled agents Yolanda and Roger Roche.
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Research tax information online. There are informative websites specifically for online poker player tax questions, although you should always verify any information with your accountant or the IRS. Tax information of specific interest to online poker players is the definition of gambling sessions, sharing entries, and declaring foreign accounts. The website Online Poker FAQ provides good tax information specific to online players, as well as links to other resources.
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Tips & Warnings
Even though most poker websites are based outside the country, U.S. residents are required to report their earnings/losses on their tax returns.
Filing taxes as a professional poker player may eliminate the need to record each session, but professional players can be subject to a 15-percent self-employment tax and may see their returns (and losses) scrutinized more closely by the IRS.
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us players can play on pokerview.
