Similar to a pay raise
Posted: Wed Dec 20, 2023 9:50 am
I am ending 2023 +$71,000 on VP (I play mostly high limits).
+71,000 is higher than usual for me because I hit two $5 Royals in 2023 for a taxable total of $40,000.
I mentioned my 2023 total to a good friend who plays a lot of live poker and some slots. He immediately said, "Uh oh! You're gonna go into a higher tax bracket! That's the penalty for winning! Too bad!"
I was perplexed. I have actually heard this before. I don't know if people are jealous or if they are uninformed.
Anything I do to increase my income is going to have tax implications. (Other than robbing banks, which has its own implications. lol)
If we get a nice increase in our salary, everyone congratulates us. No one says, "Uh oh!"
Same thing with VP winnings. It's money in the bank. Regardless of the tax changes, it is still plus income for me. I would never reject a salary increase because it might push me into a higher tax bracket. Bottom line plus income is bottom line plus income.
+71,000 is higher than usual for me because I hit two $5 Royals in 2023 for a taxable total of $40,000.
I mentioned my 2023 total to a good friend who plays a lot of live poker and some slots. He immediately said, "Uh oh! You're gonna go into a higher tax bracket! That's the penalty for winning! Too bad!"
I was perplexed. I have actually heard this before. I don't know if people are jealous or if they are uninformed.
Anything I do to increase my income is going to have tax implications. (Other than robbing banks, which has its own implications. lol)
If we get a nice increase in our salary, everyone congratulates us. No one says, "Uh oh!"
Same thing with VP winnings. It's money in the bank. Regardless of the tax changes, it is still plus income for me. I would never reject a salary increase because it might push me into a higher tax bracket. Bottom line plus income is bottom line plus income.