Online Poker Players Must Pay Taxes

It almost seems like a recipe for trouble; online poker is still effectively illegal in the United States, so filing taxes on your online poker winnings seems like you are asking to get busted. Yet, not filing the taxes is a crime that has no real grey areas, so that route will defiantly get you in trouble. Gambling is not illegal everywhere in the US, so there are certainly rules about filing a tax report on gambling income, and the same rules apply for Internet gambling as well.Gambling wins have to be reported by session, and all income has to be reported, even if it comes from a bank on the Isle of Man. The US taxes all money one of its citizens earns, even if the source of that money is overseas. Of course, if you paid foreign taxes on your money, that can be a deduction, so you can avoid double jeopardy. If you have been having a great time at the online poker tables, check with your tax advisor to make sure you don't have a bad time at an audit.