Wins like that in Ohio are taxed 48%, similar in most states.

LoL, shut up Gder.

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thanks for all the info on taxes.... i got a question though, what if I like have a residence in Australia or am like a dula citizen or something...would I get a tax break or have to pay double?

60% local + 60% state + 60% federal = you fuxXxed

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I am pretty sure that being a dual citizen has little effect on paying tax, you are normally taxed on were you live.

So if you are an Aussie living in the US, you would be subject to US taxes but i am unsure and it is a complex area.

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50% tax for professional gamblers?? wow.. what a ripoff!

No, the size of the win puts him on the 50% tax bracket. If anybody else made 7-8 million a year as any other income, they too would be paying around 50%.

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Hi guys, new to the site. Since this is a tax related question I figured I'd ask on this thread.

Living in the US and playing poker on an online site that's overseas, if you win $5000 - $9000, can you simply request a check and deposit it without reporting it to the IRS? I've asked around and many financial type people have said that if the site doesn't have your ss# which they dont, it can't really be tracked. They also said if you made a $5000 deposit into your banking account from online poker frequently, you may raise a red flag but what's to stop someone from winning that amount once, requesting a check and either depositing it to your bank acct or going to a local check cashing place, paying their fee to cash it, and walking away?

I see so many people online playing and winning thousands all day and was wondering what all of these people do when it comes time to withdraw some/all of it.

Any information would be helpful.

Thanks!

Sounds like an excellent idea, until you get audited.

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how would you get audited though? The check isn't from the poker site, it's from a bank in MN thats used as a clearing account in the US. Thousands of people every day are requesting checks of all amounts. If I got a check for $5000 as a gift or from an online poker site, would it really be researched and could it really be tracked to gambling?

You don't pay taxes on a hobby. If you're a professional gambler you pay the taxes on winnings and get a percentage of your losses back each year; much like a business. However if you are not registered as a professional player you do not have to declare it; it's a hobby