Don’t worry, the IRS isn’t going to take 25% of your cash.
But it almost happened.
There was a proposed rule for approval in the Internal Revenue Service that was going to withhold 25% of all tournament winnings of more than $5000 bucks. Now it turns out, so says Wally Chalmers, who is the Vice President of the American Gaming Association, that they dropped the idea once they assessed the entirety of the rule. We also give some thanks to the American Gaming Association Tax and Finance Task Force. They lobbied hard against that oh-so-dirty proposal to suck more tax money out of us.
What’s going to happen now is, if you’re a winning poker player, you’ll be getting hooked up with a tax statement about your earnings from your winnings. Most likely you’ll be served with an IRS Form W-2G (usually used to report random income - like casino winnings of over $1199). Regardless of this whole thing, you’ll still have to report your winnings using a tax form.
Hey, I’m all for keeping more winnings and getting more casino money in your pocket. We’ve all had our share of days where the casino busts us big time and we drop big loads of cash in the casino bosses pockets. Imagine throwing up 25% of winnings to the federal government? Nasty stuff right there!
Of course, government hates online casino gaming but doesn’t mind getting a fat 25% cut of casino gaming winnings. Which of course it will spend on $25,000 toilet seats in government buildings. And $5000 dinners for “diplomatic” purposes.
Related items
Related posts:
Subscribe to the RSS Feed
Leave a Reply