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Tax on tournament winnings - LA / Vegas / East Coast Tax on tournament winnings - LA / Vegas / East Coast

09-29-2017 , 05:25 PM
Hi, guys.
Pokerplayer from Norway in Europe who likes to travel to the US to play tournaments. I mostly play from $100 to $1000 buyin.
I have been (un)lucky to pay tax both in Las Vegas and Los Angeles.
In Vegas it was the usual $5000+ net winning. However, after winning $1500 (net 1270) at Commerce in LA i had to pay 30 %!

So for me its less value to play tournaments in LA compared with Vegas..
I have not played any tournaments at the east coast yet, but I have plans to win a lot there.

So my simple question is, where can I see the difference in tax rules listed from state to state? Or something thats clarifies the tax rules..
Tax on tournament winnings - LA / Vegas / East Coast Quote
09-29-2017 , 05:55 PM
Playing in California, you chose to play in a jurisdiction that has not only federal tax issues but ALSO a State income tax. Each State has their tax codes viewable on some portion of the State government webserver.

There are processes in place by which people may seek a refund...for most US residents, they do so at the end of the tax year when they file a return in the jurisdiction in which the income was earned and subject to State tax and they also make the required federal filings.

This is not something unique to poker. Back when I was bowling, I routinely had multiple States in which I had to file precisely because I had earned income in a jurisdiction subject to State income taxes. Professional athletes in all sports run into these issues. An accountant can advise you as to tax implications of playing poker...
Tax on tournament winnings - LA / Vegas / East Coast Quote
10-04-2017 , 01:07 PM
You get it all back at least in Vegas, if you follow the instructions about the subject (you have to visit some local office). They send it later back to your bank account or/and as a check. In Norway, you minus the costs of your trip and pay taxes of the remaining amount, if still up for the year.

If you lose in cash games and win in tourneys, too bad.

Playing cash when outside the EU, is a better idea, as long as it isn't (double) taxed, e.g. I have about never read of anyone winning 1.5k or (over) 5k in cash that was cut by 30% or so. It is generally up to the player to pay the tax every year or so.

If you would somehow get to play online tourneys/cash at some segregated pokerroom in some country, then there is a shot that they would take the taxes away before withdrawal. India is one possibility, although you are unlikely to get to play there, nor on any other segregated place.
Tax on tournament winnings - LA / Vegas / East Coast Quote
10-19-2017 , 01:14 PM
Fellow Norwegian here, also in the US several times a year for tournaments. Outside of the WSOP, I tend to stick to the East Coast, both due to reduced travel time and a good amount of tournaments available in my price range. "Luckily", I haven't had any >$5k scores there yet, so no taxes paid so far. I assume you know "Norsk Pokerforbund", I believe they can put you in touch with lawyers specializing in poker income + taxes.
Tax on tournament winnings - LA / Vegas / East Coast Quote

      
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