I’m pretty ignorant to the tax laws, but I’m curious: Is money made in online poker (offshore) taxable?
Answer 1:
While I can’t guarantee I’m right, I’m pretty sure that any income made overseas by a U.S. resident is subject to U.S. Federal Income tax. If you pay taxes to the foreign country, you might get an offset to that amount, but I doubt you’re paying any Costa Rican taxes at the Planet or Paradise Poker sites.
Answer 2:
It is defiantly taxable, but the US Gov’t has no idea that you earned the income – so they put the responsibility on you to report it in “other taxable income not reported” – this is were they get you for tax evasion (But don’t worry – that only holds true if it is over 10% of your AGI “adjustable gross income”)
Answer 3:
The short answer: Yes. If you are residing in the US, it doesn’t really matter where you earn the money. It’s taxable. If you are a US citizen who lives abroard (or is physically present in the foreign country for a substantial part of the tax year), then foreign income is excludable.
