Most big winning pros that I know do quarterly taxes as poker professionals.
Mine weren't done that way bc I have a non poker business, so I can't help you anymore than that.
Perhaps the other guys can give you some more answers.
I read 2p2 legislation forum sometimes (where all the tax questions are asked) but sifting through the garbage on that forum only gives me a headache, so proceed into that forum with caution.
I don't really get it with you guys in the U.S. I mean the whole legal situation. On one hand there's lots of casinos all over the country and on the other hand there's that unlawful internet gambling enforcement act. As far as I know this doesn't forbid gambling but it punishes the financial institutes that transfer money to online gambling sites - correct? So they somehow don't want you to gamble (obviously real gamble stuff is more of a problem than poker I guess) but at the same time you aren't punished for it but your bank is which leaves the opportunity that you still have to pay taxes because obviously you aren't doing anything illegal? Or did I misunderstand everything? I just don't get this after all..
In some US states there is a certain tax law that allows drug dealers and pimps to pay taxes. If one of these are busted and are found to have not paid taxes, they can use those FICO laws a lot easier i believe.
And welcome to the crazy US haha.
Not paying quarterly is punishable by a fine. That's it as far as I know. It's a percentage fine though, so it's substantial.
NOT LEGAL ADVICE: Just pay your taxes quarterly after your first year of demonstrated income... Use your total income last year and divide by four for your quarterly estimates (legal) assuming you plan to make more this year, then pay whatever the difference is come tax time.
Most big winning pros that I know do quarterly taxes as poker professionals.
Mine weren't done that way bc I have a non poker business, so I can't help you anymore than that.
Perhaps the other guys can give you some more answers.
I read 2p2 legislation forum sometimes (where all the tax questions are asked) but sifting through the garbage on that forum only gives me a headache, so proceed into that forum with caution.
my first year as a pro I filed all at the end of the year, and since then i've been doing it quarterly
I have no other job, so I guess that makes my decision easy. Thanks guys.
Dean
First year, just paid a lump sum at the end, now I pay quarterly.
First year lump, now quarterly here too.
What's the advantage of paying it quarterly vs annually? Just easier to keep track of?
I don't really get it with you guys in the U.S. I mean the whole legal situation. On one hand there's lots of casinos all over the country and on the other hand there's that unlawful internet gambling enforcement act. As far as I know this doesn't forbid gambling but it punishes the financial institutes that transfer money to online gambling sites - correct? So they somehow don't want you to gamble (obviously real gamble stuff is more of a problem than poker I guess) but at the same time you aren't punished for it but your bank is which leaves the opportunity that you still have to pay taxes because obviously you aren't doing anything illegal? Or did I misunderstand everything? I just don't get this after all..
Yeah, it's fucked up hah.
In some US states there is a certain tax law that allows drug dealers and pimps to pay taxes. If one of these are busted and are found to have not paid taxes, they can use those FICO laws a lot easier i believe.
And welcome to the crazy US haha.
Not paying quarterly is punishable by a fine. That's it as far as I know. It's a percentage fine though, so it's substantial.
NOT LEGAL ADVICE: Just pay your taxes quarterly after your first year of demonstrated income... Use your total income last year and divide by four for your quarterly estimates (legal) assuming you plan to make more this year, then pay whatever the difference is come tax time.