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Tax Deductions on Poker Tournament Winnings

Discussion in 'The Poker Room' started by kiwigreg, Aug 3, 2015.

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  1. kiwigreg

    kiwigreg Tourist

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    I am heading to Las Vegas later on this week for the first time and I am hoping to play in one or two Poker Tournaments. I read somewhere that as a foreigner (I'm from New Zealand) if I'm good enough/lucky enough to win some prize money, there will be withholding tax taken out of that. Can someone tell me what % is taken in tax and how easy it is to claim that back. In New Zealand all gambling is taxed at the source so all wins are tax free.
    Thanks.
     
  2. tringlomane

    tringlomane STP Addicted Beer Snob

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    In the US, taxes are only withheld in poker tournaments if you win $5k or more in a single tournament. Without the WSOP or the Venetian Deepstacks running, few, if any, tournaments will award winnings > 5k. So unless you win one of the biggest tourneys in town that week (not a bad problem to have), you shouldn't have to worry. If you don't plan to play in a $200+ buy in tourney, you won't have to worry at all probably.

    http://www.irs.gov/instructions/iw2g/ar02.html#d0e683
     
  3. wanker751

    wanker751 Dutch Rudder Enthusiast

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    Did they change this? I won 2k in like 06 or so and got a w2
     
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  4. dsab85

    dsab85 Newbie

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    I won/chopped three Tournaments in May and no Taxes were withheld. All wins were under 5K.
     
  5. tringlomane

    tringlomane STP Addicted Beer Snob

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    Wow that sucks. Maybe a state requirement? The federal law for withholding winnings over 5k has been in effect since March 2008. Before that the federal govt. didn't require any withholding to my knowledge.
     
  6. wanker751

    wanker751 Dutch Rudder Enthusiast

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    Was majestic star... indiana. Meh paying taxes on $1500 is better than not having $1500!
     
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  7. nostresshere

    nostresshere Mr. Anti Debit Card

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    Sort of. That $1500 for to the FRONT page of your tax form.

    And, often when folks win $1500, it eventually goes back into the machine anyways.
     
  8. mwig

    mwig High-Roller

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    Based on the chatter at the Grand series at the Golden Nugget, it is a multiple of the buy in. I want to say it is anything over 10x the buy in gets a W-2G. I'm sure there is also a min/max in addition so maybe nothing less than the $1200 and everything over a higher dollar level? I won $1850 in a WSOP deep stack and did not get one. The buy in was $240 ish. Whatever the level was at the grand, they reduced the payout by $1 so no tax form was needed.
     
  9. kiwigreg

    kiwigreg Tourist

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    Thanks for that. I suppose it would be a good problem to have if I won a large prize. Cheers!
     
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