We have to pay tax if we won it,
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Tax Free Poker: 2011 WSOP Champ Pius Heinz Will Keep Entire $8.7 MillionThis year’s World Series of Poker champion Pius Heinz will not have to pay any taxes on his $8.7 million in winnings it was revealed on Tuesday. The German player outlasted 6865 players to win the 2011 WSOP last week.
From DailyFinance.com:
Under the U.S.-Germany Tax Treaty, Germans' gambling income earned on U.S. soil isn't taxed by the IRS, reports Taxabletalk.com. Back in Germany, gambling winnings are also tax-exempt. So Heinz won't have to ante up one penny to any government, while most of his competition is paying a full house or more.
Ben Lamb of the US is estimated to be forking over $1.5 million of his $4,021,038 third place winnings.
Martin Stazko of the Czech Republic finished second and won just over $5.4 million. He will not owe anything to the IRS in the USA but in the Czech Republic he'll likely end up paying just shy of $1 million, or $814,963.
Eoghan O'Dea of Dublin, Ireland will be paying 40 percent of his $1,720,331 5th place winnings back home. DailyFinance.com noted that, while Irish amateur poker players get to keep all of their winnings, professionals like O'Dea must fork over 40 percent.
It could be a whole lot worse. In 2008, WSOP Main Event champ Peter Eastgate had to surrender 73 percent of his more than $9.1 million in winnings to the Denmark government.
