Hi,

I'm a newbie to the forums and wanted to get everyone's thoughts on how they manage cash after a poker session? Deposit into the bank or just keep in your sock drawer? I would think frequent withdrawals/deposits from a bank account would trigger the bank's suspicious activity alarm or something from the IRS. I don't feel comfortable using a safety deposit box at a casino.

Thanks!

Get a safe deposit box at a bank (~$20 yr rental fee). Deposit cash bills in there ~monthly as your bankroll builds up if your worried about "bank suspicious activity alarm" or IRS

Good idea, but anyone else? Are my concerns really valid or no?

I regularly deposit into a savings account at my local bank. They know I play poker professionally and no problems have arisen so far. I do pay my taxes on poker income.

Banks/IRS don't really care how many transactions you have during a month unless you are already being looked at. 'In general' all transactions of over $10K are 'looked at/logged' but not scrutinized obviously. And yes, we don't really live in a cash society anymore, so (I guess) there's a greater chance of attracting attention to yourself. If you are around 10-15 transactions a month at a bank I don't think you would need to worry.

1) Keep 10-12 BI out of the bank, if not more
2) Consider a safe at your house
3) Consider a safety box at the bank
4) Use multiple/separate banks for house and poker
5) Yes, properly account for income on your tax return

You don't state what stakes you are playing or how often you play ... You'd be surprised at how many people are walking/driving around with large amounts of cash 'close by'. With 'so many' visits I'd be more worried about getting robbed by someone watching your patterns than being flagged at the bank. Don't know where you live either .. GL

By the way, if yuo are asking 'How do I hide my income from poker playing so that i don't have to pay taxes?', the answer you will find here is 'Declare your income and pay your taxes.'

That's not what I'm asking. I don't play enough or high enough stakes for that to matter anyways.

Then I guess I don't understand your concern

" I would think frequent withdrawals/deposits from a bank account would trigger the bank's suspicious activity alarm or something from the IRS"

Uhhhh, it all matters to the IRS. No matter how small you play.

To complete your yearly return legally, you have to consider the following.

If you itemize, you list your winning sessions as earned income and then list your losing sessions as an itemized deduction. (You DO NOT "net" your poker money.)

If you do Not itemize....and with the US tax structure written for 2020, itemizing is mostly for large earners..... the poker player (gambler) is totally screwed. You Must list all your winning sessions without the possibility of a corresponding deduction. So if you do not itemize, ALL your winning sessions can amount to a tidy sum that gets taxed! You can not net winnings and be legally filing a return.

*winning session has been loosely translated into "a casino visit" and/or if you play online, "log in/log out".

What if you don't itemize your hundreds of yearly sessions - what a pain in the a**! - but you have records (such as PokerIncome) to back up your reported net winnings that you pay taxes on? (I am not a large earner btw, <$100k.)

DT....technically you are in violation unless you file as a professional player.

Of course the key to do that is the majority of your income must be derived from gambling.

I am not sure of the exact requirement here though. example: If you take all you winning sessions for 2019 total of 50K (again, not net) and your day job brings in 40K...can one be a professional gambler (if gambling losing sessions add up to 30K)? I dunno.

I was a rec player always....but also was able to always itemize. I kept DAILY journal of winnings/losings for all online and live casino play.

Thanks...sounds like I am probably in the clear (gambling winnings far exceeded day job earnings and I filed as professional gambler in addition to day job). Appreciate it.

OK, I guess. My suspicion is filing as a pro does not absolve you of the need to have winning and losing sessions defined. But I do not have absolute answer on that. I would have a pro CPA* do your tax once (maybe this year) and fill you in on absolute requirements. Then follow that template on the following years.

* Not HRBlock type...get a real CPA imo.

I live in a juris where gambling earnings aren't taxed, but I've seen enough debates about poker tax in the US on 2p2 to second the idea that getting an accountant is +++lifeEV.

yes .. there are 'poker' CPAs out there if you feel that you really need one.

1) Although the likelihood of an audit is low, you need to be ready for one. So records will be required to show where you got your numbers from.

2) The 'not net' is very important since Gambling Winnings (winning sessions) and Losses go in different parts of the return for amateurs. That's where the CPA can help you.

3) 'Pretty sure' that you can't pick and choose (out of tax convenience) whether or not you are professional or a hobbyist from year to year. That would require more records. One thing is money, the other is 'effort' or time you are putting into your 'jobs'.

Taxes are not a money grab, so to speak ... You only owe what you owe. The issue is trying to determine what you owe based on your activity. Once your life gets beyond the super simple you might as well get in touch with someone who deals with more than just your situation more than one time a year!! GL

This is helpful. I’m just getting back into online poker after the Black Friday days and was unaware you couldn’t just “net”. I guess if the situation arises I’d probably fork up for a cpa