25% up to $100 bonus at Pacific Poker

congress.jpgOn March 4, 2008, a new tax law that requires casinos to report any and all tournament winnings of over $5,000 to the IRS went into effect. Poker players have always been required to pay federal income taxes on their winnings, and this law will make it easier for the IRS to see that the winnings are indeed being paid. Casinos who comply with the law by reporting all winnings of over $5,000 to the IRS will not be required to withhold winnins for federal income tax; instead, the player will have the responsibility of paying taxes to the IRS. If casinos do not comply, than they will be required to pay the taxes that should have been withheld.

Players will give their tax information to the casinos, who will then report the winnings to the IRS. The player will have to pay 25% of their winnings in taxes, which is 3% less than what the casino would be forced to withhold if the players did not give their tax information, as taxes must withhold 28% of winnings if they do not have a player’s tax information, which is typically their social security number as it acts as their tax identification number.

The tax law went into effect on March 4, 2008, and casinos do not need to report any winnings that occurred before that date; however, the players who earned winnings before March 4th are still required to pay the income taxes on their winnings that they have always been required to pay.

Leave a Reply

Mac Poker Rooms

Objective reviews of Mac poker rooms by an online poker pro.

Mac Casinos

Click in and get your latest info on Mac Casinos!

US Poker Rooms