do you have to report online poker earnings to the IRS?
Do you have to report your earnings from playing poker online to the IRS on your taxes?
If so, is there a designated amount that doesn’t need to be reported – and everything above that does?
If it matters by state – I am curious about California.
Also, the way the monies are received from the poker site are via check.
Question posted by: Jessica G
Yes, you are required to report your earnings from playing poker online to the IRS, regardless of the state you live in. This applies to both cash games and tournament winnings. Income from gambling, including online poker, is considered taxable income and must be reported on your federal income tax return.
There is no designated minimum amount that does not need to be reported. All gambling winnings, regardless of the amount, should be reported on your tax return. However, you are also allowed to deduct your gambling losses, up to the amount of your winnings, as an itemized deduction on Schedule A of your tax return. It’s essential to keep accurate records of your winnings and losses to support your deductions.
Additionally, if you receive a check from the poker site, it’s essential to report the income on your tax return. Failing to report income from online poker or any other gambling activities can lead to penalties and interest from the IRS.
It is also worth noting that the tax laws and regulations regarding online poker earnings may vary in different states. For more specific information regarding your tax obligations in California or any other state, it is best to consult with a tax professional or an accountant familiar with gambling-related tax issues.