Do I have to pay tax on my ONLINE poker winnings?

Question

I don't understand what criteria makes my winnings subject to tax. If I cash out $300 a month for 12 months... is that any different than cashing out once for $3600? I'm asking because I set a personal goal for profiting $5000 this year. I'm very cautious and have a very strict system. So no "gambling is bad" comments please.

Anyway, If I was to win that $5000 successfully... does that mean I actually need to win like $8000 or $10,000 so I have enough to cover taxes? It's pretty frustrating to know that I would have to log in so many extra hours just to fund the Uncle Sam fund.

I don't play for a living, I have a normal job and pay taxes. I just love to play, and a little extra cash on the side is nice. I already won a total of $2300 this january, but it was between three different cash-outs. I've heard that a cah out over a certain amount subject it to tax. But I don't know if I'm responsible to pay on the total of all the seperate checks i got?

Answer 1

NO, you don't have to pay taxes for $5000 in winnings, all you have to do is cash out more often let say every 4 months, if you would deposit more then 9,999.00 into your bank account IRS has a right too know hod did you get that money. my friend got $4800 cash out he has no problem and that was in 2005

Answer 2

Winnings are taxable.  

Receiving cash does not mean you won because you bought in for a certain amount.  

You need to keep accurate records for your buy in and per session wins and losses.  Does the website where you play provide these to you?

Answer 3

First off all gambling on the internet is illegal and if you do it and win you best not post it.No gambling site is registered in the USA.No sites have any tax reporting to IRS.No taxes are paid to anyone and are not deducted.Also 90% of internet gambling sites are scams to collect but not payout so anyone with a computer can say they are a legal gambling site so beware.The oldest site still on line is world sports exchange the site is wsex.com.They have been in court in  the USA for years battling the IRS with no result yet as reported on 60 Minutes.Most credit card company's and  PayPal will not allow money transfers to known gambling sites and banks are slowly trying to stop it.Since the sites are offshore banks also charge a % for transfer of funds,good luck