The poker world is buzzing about a new tax code that will withhold 25% of any poker tournament winnings if the amount is over $5000.
The day that this formally goes into effect is March 4th, 2008. Starting that day, if you cash for say $10,000 in a tournament, the casino will deduct the amount of your buyin from the amount that you won, and withhold 25% of that amount.
This new tax code came about after a tax court ruling that stated that tournament poker was not a skillful competition, and should instead be treated as a gambling activity.
The amount will be withheld until the player files their tax return for the year. Then at that point, it will be decided whether or not the player needs to pay more, or receive some of that back.
Filed Under: Other Poker News