Comments on: Do You Have To Report Online Poker Earnings To The Irs?

By: Rick B

Rick B — Sun, 29 Nov 2009 23:15:07 +0000

I’m pretty sure that it is illegal to gamble online for money in the US, so I would probably not report any of that activity.

By: Maryn

Maryn — Sun, 29 Nov 2009 19:31:46 +0000

Yes. All income, legal and illegal, is subject to taxation.

By: Craig T

Craig T — Sun, 29 Nov 2009 14:46:36 +0000

Technically you are required to report ALL gambling winnings, even if the winnings are from illegal gambling

By: mister ed

mister ed — Sun, 29 Nov 2009 08:09:41 +0000

all income has to be reported to the irs!!!

By: Judy

Judy — Sun, 29 Nov 2009 07:29:16 +0000

Legally, yes you do. Also, legally, if your winnings are over $600 (total for the year) the site must send you a 1099-misc for the amount you won, and also report it to the IRS.
If you follow the IRS rules for keeping an accurate log of ALL of your gambling activity for the year, and IF you itemize, you can deduct losses up to the amount of your winnings, so might not have to pay tax on the entire amount that you won.

By: STEVEN F

STEVEN F — Sun, 29 Nov 2009 07:23:46 +0000

Unless your TOTAL income is low enough that you are not required to file, you are legally required to report ALL income. Even if you only make $0.01 form a given source, that penny is supposed to be reported. on-line gabling is not legal in the US, but illegal income is taxable. On-line losses are NOT deductible against winnings because illegal expenses are specifically not deductible.
Judy is correct about losses from LEGAL gambling being an itemized deduction against gambling winnings. Losses from ILLEGAL gambling are not deductible. ALL on-line gambling is illegal under US Federal law.