How does a professional poker player file taxes?
mazarate21 asked:
I’ve made quite a bit of money last year playing cash game poker on the side and I’m thinking of quitting my day job and going full time. How does a professional poker player file taxes and their annual salary? How does the IRS verify the income reported is true? Must you report every cent of your winnings minus the losses?
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February 5th, 2009 at 11:28 am
Any game you play in that the winnings can be verified would have to be reported (casinos). Games in the back room need not be reported. You should show sufficient income to maintain your life style. If you are winning lots of money and spending it so that there is a paper trail i.e. credit cards, bank accounts. The IRS will eventually catch up to you.
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