Do you have to report your earning from poker, and how would the guv know if you didnt' anyways?

Question

Do you have to report your earning from poker, and how would the guv know if you didnt' anyways?

Answer 1

If its over a certain amount you're probably supposed to, but its not like table games or slots so they can't really keep track of it.  So you're probably safe not reporting it.

Answer 2

im not a poker player

Answer 3

My guess is that there are probably two things that will determine whether or not you'll get checked out over gambling earnings.  The first is if you win some major jackpot.  If you win a huge jackpot, like some bad beat one, for $40k, the casino will have to fill out a tax form and give it to you.  Unlike the money you make from just winning normally, there will be a record of this.  Second, is whether or not poker is your primary income.  If you have a normal job, and play poker on the side, then it would be tougher for the government to know that you are making extra income.  However, if poker is your only income, then they'd have reason to suspect that your are withholding information about how much money you are making.  But I don't know what the chances are of you getting audited one way or the other.

Answer 4

There is no legal "threshold" that you must pass to have to pay taxes. If you win $1 gambling, technically you're supposed to report it and pay taxes. But realistically, if you don't win a significant amount, they're not going to bother you about it.

If you've won more than a few thousand dollars playing poker, you might want to consider reporting it. Otherwise, I wouldn't worry about it.

Answer 5

There is a threshold that if you win more than that, you're supposed to report it.  It depends on how you win it though.  If its just a monthly game with your buddies, you can probably get away with not reporting it.  However, if you're playing in a casino, there is a limit that if you win that or beyond, they have to report it to the government.  Then they send you a statement at the end of the year that you have to include when filing your taxes.  If you fail to include this, there's a good chance the government will notice and will want to take a closer look.

Answer 6

Depends on which country you are from - yes, if you live in the United States. One way they could find out is if they got a hold of the payment processing company's records, as they did with Neteller recently.