Knowing When To Pay Your Poker Taxes!

Beginning in 2008 land based casinos and poker card rooms will be required to hold back 25% of your poker tournament winnings if the prize won is more than $5000.00. This doesn't include the buy in, so if you buy in for 25k and you win the cut off prize for 27k, winning a net total of 2k, this poker withholding doesn't apply to you.

Should you enter for 300, and win 50k like Debra Gudina did yesterday at Arizona Casino winning the Ladies Poker Championship title for the year, and the casino will be withholding 25% of your win.

It was ruled earlier this year that poker tournament winnings are considered gambling winnings, and therefore subject to automatic withholding. Winnings in the amount of $5k per year have be reported by casinos and card rooms to the government for them to stay in compliance with this law.

Poker Tournament winners will be issued a W-3G upon winning a poker tournament, and will need to report their winnings on their annual tax returns.