Poker tournament winnings are reported as “other income” on your tax return. However, your tax treatment will vary depending on whether you are an amateur or a professional poker player.

Amateur Poker Players

Most players fall into this category. If playing the WSOP is a fun hobby, but you still have a regular job, you’re an amateur. You still need to report your wins. Just remember:

• You cannot deduct entry fees, meals, or other gambling-related expenses.
• Keep track of your wins and losses.

Professional Poker Players

If poker is your primary job, your taxes will look slightly different.

• Pros report their winnings as business income (Schedule C).
• You can deduct tournament entry fees, travel costs, and other expenses, but you also pay self-employment tax.
• You must keep detailed records that distinguish between your business expenses and winnings.s

If you’re staking or swapping action with other players, it’s your responsibility to report your share accurately.

Deducting Losses

If you have a down year, you can deduct your poker losses as a miscellaneous itemized deduction on Schedule A up to the amount of your winnings. This reduces your taxable income but doesn’t eliminate it entirely.

• You’ll need records to show both your wins and losses.
• If you’re audited and can’t prove that something is an expense, you’ll owe back taxes, plus interest, and possibly penalties.

Amateurs can also deduct losses, but only up to the amount of their winnings.

What Happens at the WSOP Cashier

• For wins over $5,000, the WSOP will require winning players to fill out a W-2G form.
• U.S. citizens can request to withhold federal taxes right at the payout window.
• The withholding rate for non-U.S. citizens depends on the tax treaty between their country of residence and the U.S.

WSOP Sample Scenarios

Example 1: You win $15,000 at a WSOP event with a $1,500 entry fee. The cashier will likely issue a W-2G for $13,500 ($15,000 prize minus the $1,500 buy-in).

Example 2: You cash for $500 at another local tournament. No tax paperwork may be issued, but you must still report this as income.

What Forms Should You Expect?

• W-2G: Issued by the casino for wins exceeding $5,000 (minus the buy-in).
• Schedule C and SE: For professionals reporting business income and paying self-employment tax.
• Schedule A: For itemized deductions, if you’re an amateur trying to claim gambling losses up to the amount of your winnings.