vpFREE2 Forums

25% poker withholding

#1

Pesach Kremen wrote ....

Most of us have tax witheld from our paychecks. Why should it be different for poker players? The >total tax liability will not change, just the timing of paying some of the tax.

One problem I see is that if I play a $1000 buy in tournament, rebuy for $500 and then end up 'winning' $5000, I will have 25% ( $1250) withheld.? Now I have to go through the battle of wins vs entry fees on my taxes while the IRS holds on to $375 more dollars of mine than they should.?

The same thing happens on video poker.? The cost of the hand is considered a win for initial tax purposes.??

If anything, I think the IRS over collects on gambling wins.? All those people who hit a W2 jackpot but don't itemize to me pay more in taxes than they should.

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#2

Pesach Kremen wrote ....

>Most of us have tax witheld from our paychecks. Why should it be

different for poker players? The >total tax liability will not change,
just the timing of paying some of the tax.

One problem I see is that if I play a $1000 buy in tournament, rebuy

for $500 and then end up 'winning' $5000, I will have 25% ( $1250)
withheld.? Now I have to go through the battle of wins vs entry fees
on my taxes while the IRS holds on to $375 more dollars of mine than
they should.?

The same thing happens on video poker.? The cost of the hand is

considered a win for initial tax purposes.??

If anything, I think the IRS over collects on gambling wins.? All

those people who hit a W2 jackpot but don't itemize to me pay more in
taxes than they should.

You are correct Johnny, in Missouri they withhold 4% of every $1200 or
greater 'win'. One day, my wife and I hit 18 of these 'wins' and left
the casino down almost $3000 for the day, and had $993 in taxes
withheld. Every year we get a large refund check from MO because they
withhold every time you 'win' and yet you dont necessarily win at the
end of the year. They just want your money and hope you dont ask for
it back at the end of the year.

It could be worse, from what I understand Illinois does not allow any
offset for your losses and they want 3 or 6% of every w2g regardless
of whether you win or lose at the end of the year.

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--- In vpFREE@yahoogroups.com, greeklandjohnny@... wrote: