Jerry Yang WSOP Poker Champion get to keep all of his winnings?

Question

Does he get to keep all the cash or does some go to taxes?

Answer 1

The government takes 35% (I think) of any winnings over a certain amount.  I can't remember what it is off the top of my head, but it's quite a bit.  Why wouldn't they?  It's income, and taking money out is no different than withholding part of your paycheck.

Answer 2

It's one of those completely unfair government scams.  Let's face it, 6000 or so people each put up about $10,000.  The casino takes a small portion to pay for their time, space and staff.  The rest of that money is put into a big pile, the lions share going to the winner, in this case Wang.

So he wins this money that all the poker players put into the kitty, and now the government wants 35%.  Hardly seems fair really.

After all, I give my friend $100, should the government get to steal $35 of that?

So whatever his prize was (I forget the exact amount now) I'd say the government took about a third of it.

Answer 3

When you win cash like that, it is immediately taxed under the capital gains provision of the tax law.  I think they immediately withhold about 35%.  Capital gains tax is near 35% - 40% but I am not sure.

Mark F.

-PokerGob.com