Let's say you are playing in the WSOP Main Event, and the bubble bursts and you're one of the first people to be knocked out. You go collect your prize of $19,106, how are taxes factored into this? Are you able to declare your buy-in as deductible for this, or do you pay taxes on all of it?
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possible duplicate of poker.stackexchange.com/questions/984/…– RayofCommandSep 19, 2013 at 8:12
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@RayofCommand: While that question deals with tax that are withheld from the payout, it isn't a duplicate of this question.– lnafzigerSep 24, 2013 at 14:57
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2 Answers
In the US, when you do your taxes, you are required to show your income from poker. This would be the total of all of your winnings, minus your losses. However, you can not show a loss on your tax return, so the lowest amount you can show is $0.00.
This means that you can deduct your buyin from your winnings in this case.
If you are a professional player, you can even deduct other expenses related to playing poker (transportation, meals, lodging, etc.) but not if it is only a hobby.
See here for lots more information: http://www.pocketfives.com/articles/tax-qa-585513/
the taxes are charged on that price you get. so of your $19,106 you have to pay around 30% as taxes, depending on the country you live in. as an american it's 30% for that. -it seems that your buyin is not "part" of it and you have to pay taxes on your own 10k you brought in... Found here :
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When you actually do your taxes the buy-in of 10 k is deductible, so in the end you only pay on your actual win of 9,106.00– Jon ♦Feb 13, 2018 at 2:10