Proper tax planning is a must for any professional poker player. Without it, you may be costing yourself huge sums of money. If poker is your profession, there’s plenty of work you’ve got to put in that isn’t even connected to poker play. We’re talking about understanding the tax implications – including expenses and mortgage eligibility – that come with the territory.
As the year draws to a close, poker pro and WSOP bracelet winner Chris Wallace has put together a primer on what it takes for a poker player to conduct themselves professionally, as far as taxes, recording income and expenses, etc. is concerned.
American citizens have tax reporting requirements on all income worldwide and on all foreign bank accounts with a minimum of $10,000 in them. For many online poker players, then, it’s important to abide by the rules and file taxes with the IRS accordingly.
This post reviews a couple of the main tax issues US citizens face that relate to online poker, and the importance of being the right side of the law. It’s certainly worth a look, even if you’re just a recreational poker player.
Along with my Top Pair Home Game Poker Podcast co-host Bruce Briggs, I recently interviewed Ray Kondler, a longtime tax advisor and accountant for poker players. You don’t have to be a professional poker player to appreciate the importance of correctly filing tax returns on poker wins. Also, if you are a professional poker player, you need to know what expenses can be deducted from your tax return. Whatever your poker status, this is an interview that’s important to check out. Listen to the entirety of Episode 259 of the podcast, which includes the interview with Poker CPA Ray Kondler starting at the 13:10-minute mark. You can also read the summarized transcript. Enjoy!