With 2019 on the horizon, online poker players can benefit from learning more about their tax paying needs. Taxes aren’t due until April 15th, but it can be helpful to get started thinking about tax requirements now. The Tax Cuts and Jobs Act of 2018 has left poker players with changes that they must be aware of in order to ensure taxes are filed correctly next year.
With the new act, several reductions are now on offer, for particular brackets of individual taxes. The alternative minimum tax for individuals have been increased plus estate tax exemptions. Foreign income is also being taxed in a different way, so poker players who earn certain amounts need to be aware of these changes.
Based on the act, all winnings from gambling must be reported. Some players located in the United States will be given a W-2G form that covers certain types of gambling winnings. This will include casino game play. This form is issued by a gaming venue if the net win is worth $600 or more and if the win is 300x or more the amount wagered.
For players who are recreational gamblers, any win amount will need to be reported on a 1040 form and placed under the category listed as Other Income. Losses can also be deducted against winnings and this will need to be listed as an itemized deduction.
Players who compete professionally will need to list their gambling activity and will be able to reduce their overall income earned by listing expenses or losses from wagering. The process may seem tricky and confusing, so it is important to have a knowledgeable accountant by your side to assist. This year may seem a little more confusing with the changes so having help with your filings are essential to follow the law when filling out tax paperwork.