Do you need to pay taxes on money won playing online poker?

Question

I recently won $3000 on a poker site, not based in the United States. Will I need to claim this on my taxes at the end of the year?

Answer 1

Yes.

According to the revenue code, all sources of money and wealth are taxable until Congress awards an exclusion. The following sources of income are also taxable:

money found on the ground
ill-gotten gains
money made on a press in the basement
money stolen from a bank
goods purchased with monopoly money and sold for real (capital gain)

Exclusions include things like pensions, state and municipal bonds, military hazard zone pay, etc.

Answer 2

Yes

Answer 3

You will have to declare this amount because in order for you to collect this amount it would have to pass through a bank or other financial institution and as it does, it is recorded. Banks are supposed to issue Suspicious Activity Reports (SARs) on any deposit or withdrawl starting at the $10,000 level. However, in order to cover themselves with the IRS, many financial institutions will file for a lot less, especially from money coming in from outside of the US.

Answer 4

Absolutely. Unlike European countries, the US taxes all income that its citizens make.

You can deduct any losses you had *this year* against your $3000 gain. I'd recommend going to the IRS website and doing some research on how, exactly, you'd file.

Answer 5

Legally yes, any income, even from gambling should be claimed. That being said, I doubt anything would happen if you didnt claim it, as long as you do the rest of your taxes right.

Answer 6

Yes.

Answer 7

i thought they recently made it illegal to play online poker if you are a us citizen. I know my partypoker account will not let me gamble with real money anymore

Answer 8

Legally, yes you do.

Answer 9

i wouldnt, but yes i think its over a curtain amout and i think you are over that.