Can we get some more clarification on this? Here is what I’m thinking and doing regarding tournament wins and losses, is it wrong? Live play is easy – take the session win or loss and add that to either the “Other Income” (Gambling Winnings) or Gambling losses (to the extent of winnings) sections on the 1040 and the schedule A. For a tournament, if my buy-in is $220, with $200 to the prize pool and $20 to the house, and I cash out $1000, my net win would be $780.
I “Lost” $220 by entering but “won” $1000 in the single session. Even if in the above example an additional $10 was taken out for the dealers, my “loss” was still $220. Assuming all tips are declared as income by all dealers (don’t know here, but for pooled tips it’s probably the case), and all tournament tips are reported, what is the additional tax implication on the dealers by taking it out up front? I don’t see any, assuming the up frot amount is the same as the winners tip amounts. Please explain.
Answer 1:
I agree. Unless there’s some complicated procedure to get around the simple and obvious (nah, the IRS wouldn’t do that, would they?) Mark: here’s a tip … get a receipt for tips for backend (normal) tipping arrangement like the Sam Boyd Poker Classic.
Answer 2:
You don’t have a “net win”, the IRS doesn’t recognize that. You have two entries in your tax records, a $1000 win, and a $220 loss. But you payout would then be something less than $1000. Unfortunately the TOC is not a casino entity. The simpler and more appropriate way to do this is for the entry to be $230. The took pool should come from the entry fee and not the prize pool. If done that way the tax implications are even easier to deal with. The tip money never goes into the prize pool. I don’t know how it could be clearer, but here goes again. Assume the total amount tipped is $5000. You can either give that $5000 to the winning players, have them sign W2G’s for the amount, have them tip, then have them have to pay some percentage of that $5000 in taxes at the end of the year……. or, you don’t make the players sign for the $5000, you give the money directly to the dealers. If you enter a $1500 tournament, win $100,000 and tip $5000, you have to pay taxes on $98,500 (the 100,000 with a 1500 “loss” deduction). When you walk out of the casino, you will have $95,000 in your pocket, but a tax liability for $98,500. If the $5000 tip money is part of the entry fee or a percentage of the prize pool, if you win, you will win $95,000 and you will pay taxes on $93,500 (95,000 with still a 1500 loss deduction). You walk out of the casino with $95,000 in your pocket, but a tax liability of $93,5000 — $5000 less than the above. Again, this is a pure no brainer for players. The same amount of money goes from the players to the dealers. Less money goes from the winners to the IRS. More money is kept in the poker community.
Answer 3:
There is a little more to this as well. The area where you declare other income, is fully taxable as part of your adjusted gross. Your schedule a deduction while not subjected to the 2% adjusted gross income limitation can be limited by the total amount of your overall deductions. In other words it is not always a dollar for dollar trade off. Please consult your own tax adviser for details.





I use Word and have the suit symbols available as “one-stroke” macros. I used that in a word document and then pasted the symbols in above. I’m posting this to see if they show up properly on rgp.
I have a copy of Brunson’s book, with Mike Caro’s odds table in the back. I’m trying to work these problems myself so I can do more complicated ones in the future. There is a chart that says if your first three cards are the T, J, Q of clubs, your odds of getting a straight if you stay to the river are 14.91 (expressed in percent). I have tried to figure this out, but I’m not getting what I believe to be the right answer. Please explain how this is determined.
I am new to poker and I am considering whether I should try playing for real money in one of the Internet sites, as I don’t think legal card rooms exist where I live (Orlando, FL). Could someone recommend a reputable site if that’s a good idea? Also, I’ve heard about the problem of collusion in online games. How prevalent a problem is that, really? And as I’m not yet an expert on the game, I can’t really see why two people playing in tandem would gain a particular advantage over other players. In my view that would be the same as one player getting two different hands in every round while having to pay for both of them. If he were a good player he would win
I live in Orlando, FL and I’m new to poker. I’ve been wondering if there’s a legal card room or some other reputable venue in this area or elsewhere in the state. If you know of one, I’d greatly appreciate it if you let me know.

