Comments on: The Jock Tax Hits Poker Players http://www.taxabletalk.com/2009/11/15/the-jock-tax-hits-poker-players/ From Russ Fox, E.A., of Clayton Financial and Tax of Las Vegas, NV. All of the items below are for information only and are not meant as tax advice. Please consult your own tax advisor to see how each item impacts your own situation. Fri, 03 Feb 2012 02:18:00 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Russ http://www.taxabletalk.com/2009/11/15/the-jock-tax-hits-poker-players/#comment-147 Russ Wed, 18 Nov 2009 15:42:10 +0000 http://taxabletalk.com/?p=1896#comment-147 1. Does this apply to all gambling winnings? Absolutely. But it's difficult for states to go after gambling winnings without proof of the winnings. With tournament poker and W-2Gs, there is proof. Nevada is a non-issue as there is no income tax in Nevada. 2. Poker players are impacted through what I consider collateral damage. The law is written so that non-residents owe tax if they have income in (say) California. The law is written to cat as large a net as possible and obtain as much income as possible for the states involved. Thus, whether or not poker is a sport is irrelevant for this issue. As to the fairness of this tax, there are few taxes that are fair. 1. Does this apply to all gambling winnings? Absolutely. But it’s difficult for states to go after gambling winnings without proof of the winnings. With tournament poker and W-2Gs, there is proof. Nevada is a non-issue as there is no income tax in Nevada.

2. Poker players are impacted through what I consider collateral damage. The law is written so that non-residents owe tax if they have income in (say) California. The law is written to cat as large a net as possible and obtain as much income as possible for the states involved. Thus, whether or not poker is a sport is irrelevant for this issue. As to the fairness of this tax, there are few taxes that are fair.

]]> By: Mike S http://www.taxabletalk.com/2009/11/15/the-jock-tax-hits-poker-players/#comment-146 Mike S Sun, 15 Nov 2009 21:29:03 +0000 http://taxabletalk.com/?p=1896#comment-146 Hi Russ, A few quick questions, if you have a chance: 1) Is this tax something that "technically" applies to all gambling winnings? Notably, cash game wins and small tournament cashes? It seems like it'd be a huge mess for a traveling cash game specialist to have to keep track of winnings in each state and file returns for each of those states -- though I'm sure few people actually do this when W-2Gs are not given, is it something they should be doing? Is a casual poker player on a trip to Vegas really an "athlete" or "entertainer" in any sense? 2) If this is a tax that applies to athletes and entertainers, does that imply that either poker is "a sport" or that poker players are entertainers? It seems like either of these would run counter to the usual unfair rules in place for the way poker income is taxed. How is this reconciled, or is it just a standard unfair discrepancy? Thanks and Best Regards, Mike Hi Russ,

A few quick questions, if you have a chance:

1) Is this tax something that “technically” applies to all gambling winnings? Notably, cash game wins and small tournament cashes? It seems like it’d be a huge mess for a traveling cash game specialist to have to keep track of winnings in each state and file returns for each of those states — though I’m sure few people actually do this when W-2Gs are not given, is it something they should be doing? Is a casual poker player on a trip to Vegas really an “athlete” or “entertainer” in any sense?

2) If this is a tax that applies to athletes and entertainers, does that imply that either poker is “a sport” or that poker players are entertainers? It seems like either of these would run counter to the usual unfair rules in place for the way poker income is taxed. How is this reconciled, or is it just a standard unfair discrepancy?

Thanks and Best Regards,
Mike

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