Tell me more ×
Poker Stack Exchange is a question and answer site for serious players and enthusiasts of poker. It's 100% free, no registration required.
up vote 6 down vote favorite

When I'm looking for WSOP 2012 results payout structure, why some players paid taxes and some of them doesn't? Is their goverment getting this money from them? Is it about being illegal in their country?

enter image description here

share|improve this question
2  
Poor merson, 3.7M tax. – Soner Gönül Dec 18 '12 at 22:16

2 Answers

up vote 4 down vote accepted

These are due to IRS regulations, and it isn't taxes paid, just withheld. The players must declare this money as income, less any deductions, to the IRS and then they can have the difference returned to them. For professional players, if they had losses and expenses to offset some of these winnings, they might get quite a lot of it back - even all of it. That's between them and their accountant and the IRS, the casino is just required to withhold that money.

Some countries have tax treaties with the United States and there is no withholding. That is why some players show no tax - but they still have to declare these winnings in their home country and pay taxes there, the casino just isn't required to withhold anything.

share|improve this answer
3  
In a number of countries, as long as playing poker isn't your profession, you don't have to pay taxes on it. The US is not one of these, obviously. – Jacob G Dec 19 '12 at 1:20
@jacob - right, and if you are from one of those countries you can get this withholding returned to you as well, you just need documentation from your country etc. – wilfra Dec 19 '12 at 6:10
up vote 2 down vote

Well, based on the American tax laws, the winnings of WSOP would be charged a tax of 30% if you are an American citizen. But, as far as the players from other nations are concerned, it would completely depend on the tax laws of their country, which is why the tax deductions don't show in their winnings.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.