If a person wins a large sum of money playing internet poker, what are the tax implications?

I am curious about a scenario where a person wins, say, $250,000 at a site like Full Tilt Poker. First off, can they just transfer the money into their bank account without any problems? After that, what kind of taxes will they have to pay? Are the any (legal) options that would reduce the total tax amount?

10 Responses to “If a person wins a large sum of money playing internet poker, what are the tax implications?”

  1. gnomic says:

    Just like any business…winnings are reported as income and losses as expenses.

  2. xxst3v3nliuxx says:

    yes

  3. lotus_blossom says:

    I have a friend who won $500,000 in online poker. He did have to pay a large amount in taxes. I’m not sure about legal options to reduce it, though, he just did what his tax guy told him to do and said it was “a lot” but not as much as he thought it would be. Congrats!

  4. kooooo says:

    Is it really possible to win that much at online poker?

  5. radio80flyer says:

    It is a voluntary reporting system, so they say.

  6. Robert R says:

    No, it is taxable income. The only way to decrease it is to off set it with losses. You may deduct your gambaling losses, to the extent that you had winnings.

    If you won 250 and lost 250 you would declare the income and the deduction so no tax. If you won 100 and lost 250, you can only deduct 100.

  7. Spanky Mc Cranky says:

    You poker shark you!

  8. cardiackid65@sbcglobal.net says:

    any winnings in excess of $1500 are subject to a IRS form 1099. I would suggest withdrawing your winnings a little at a time, open multiple checking accounts and slowly deposit it a little at a time so as not to cause suspicion…..

  9. rey says:

    question is…what site did you go play at so i can go play

  10. Gary says:

    All winnings are taxable no matter the size of the pot. Winnings goes on Line 21, 1040 tax form.

Leave a Reply

Top Poker Sites

Win Palace Poker

Win Palace Poker
Win Palace chooses Real Time Gaming for ther software. WinPalace welcomes new players to their exclusive casino with $1000 CASH! Plus a huge 200% bonus (up to $500) not only on your first but 2nd deposit too! ...

Play Now

Winner Poker

Winner Poker
Winner Poker has the support of Playtech Software, allowing players to experience great poker games online. Players at Winner Poker can enjoy Sit n Go, Daily Freerolls plus new players get 100% match bonus of up to $500....

Play Now

Sun Poker

Sun Poker
$500 New Player Deposit Bonus New Player to can receive up to a whopping $500 in free online poker money from your first 90 days of poker play, 100% bonus up to $500! SunPoker is your online place to play poker. You won't find anything like that in a land based poker room. ...

Play Now

Noble Poker

Noble Poker
At Noble Poker they like to get you going with a good start... sign up today and get up to $500 when you make your first deposit at Noble Poker! 100% Bonus...

Play Now

Celeb Poker

Celeb Poker
CelebPoker's New 100% up to $600 Deposit Bonus is an easy way to boost your bankroll, play today and get in the money! Plus you will receive a free token to try to grab a part of that $2500. ...

Play Now

Party Poker

Party Poker
Get your 100% welcome bonus, worth up to $/£/€100, when you join PartyPoker.com today....

Play Now

PokerTime

PokerTime
Get a 100% match bonus up to $200 when you join PokerTime! Make your first deposit with PokerTime and you will receive a 100% bonus up to $200! To redeem this bonus, all you need to do is play and earn poker points equal to 1 times the bonus amount...

Play Now

Poker Rewards

Poker Rewards
Another successful Microgaming Poker Room, Poker Rewards offers new players a 50% bonus of up to $200 FREE! ...

Play Now

Cool Hand Online Poker

Cool Hand Online Poker
At Cool Hand Online Poker - Get a €10 instant match bonus on your 1st successful deposit! Do you play poker for entertainment? Want to grow your skills and build confidence? Would you prefer your bankroll to last longer? If YES, Play Poker with Cool Hand Online Poker! ...

Play Now

Villento

Villento
Villento Casino is one of the latest products of Micro gaming’s casino websites. Apart from sporting some of the best features of online casinos, Villento Casino is also regarded as one of the best online gaming portals around....

Play Now

Contributors

We recommend