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TAXES - HELP!

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  1. KenRogers KenRogers is offline

    Minot, ND
    United States

    Posts: 101
    Joined: Jun 05

    Apr 14th, 2006 (4/14/2006 1:15pm)

    May of screwed up waiting to the last minute! Here are my questions:

    Haven't figured it out yet but it appears to me that I may be best off filing as a "Pro". I do have a full-time job but made a decent amount playing poker. Reporting as a hobby and putting the income on line 21 really screws me because I don't have much for other itemized deductions and I lose "Child Tax Credit" etc. because my adjusted gross income becomes very high (largely due to cash game activity). I am thinking if I put my poker income on a Schedule C things may be better. QUESTION: Exactly what do I have to prove to be a pro? What are the negative effects of this?

    Where do you report deposit bonuses given by the sites? Gambling income or elsewhere?
     
  2. Bullox Bullox is offline

    Posts: 785
    Joined: Mar 06

    Apr 14th, 2006 (4/14/2006 1:39pm) in reply to KenRogers

    Ever hear of an accountant
  3. Gramps Gramps is offline

    Caldwell, ID
    United States

    Posts: 56
    Joined: Jan 06

    Apr 14th, 2006 (4/14/2006 1:41pm) in reply to KenRogers

    You can "gift" up to $10000+ annually to a relative, (i.e. your father), and reduce your tax burden considerably.
  4. KenRogers KenRogers is offline

    Minot, ND
    United States

    Posts: 101
    Joined: Jun 05

    Apr 14th, 2006 (4/14/2006 1:51pm) in reply to KenRogers

    I am definitely hearing of an accoutant right now. Would have to file an extenstion and still have to pay what I feel I owe - which is higher than what I thought it would be. I may be playing $5 SNG's again and rebuilding a bankroll because it is going to take a pretty good hit. :)
     
    Thread Starter
  5. phatcat phatcat is offline

    Hutchinson, KS
    United States

    Posts: 1,530
    Joined: Apr 05

    Apr 14th, 2006 (4/14/2006 2:07pm) in reply to KenRogers

    Simply put, the only true requirement for filing on Sch. C is that you have a reasonable expectation of profit from your business venture(poker). It sounds like you do and if so, filing Sch. C would be correct, probably more so than filing as a non-professional. The downside is, there is an extra "self-employment" tax on your net income of 15.3% (of which you are able to deduct half on line 27). Deposit bonuses would be treated and reported just like any other income from poker.

    phatty
    444 11
  6. KenRogers KenRogers is offline

    Minot, ND
    United States

    Posts: 101
    Joined: Jun 05

    Apr 14th, 2006 (4/14/2006 6:51pm) in reply to phatcat

    Thank you Phatcat!!!!!
     
    Thread Starter
  7. Rock_Me Rock_Me is offline

    Aledo, TX
    United States

    Posts: 522
    Joined: Feb 05

    Apr 14th, 2006 (4/14/2006 6:55pm) in reply to KenRogers

    Unless you earned over 90K from your other job. You may have maxed out SS and only owe on medicare. (which is 2.9%)

    Gramps, what are you smoking? I need some

    F
  8. Gramps Gramps is offline

    Caldwell, ID
    United States

    Posts: 56
    Joined: Jan 06

    Apr 14th, 2006 (4/14/2006 9:17pm) in reply to Rock_Me

    Rock....I'm Ken's old man, and was just trying (unsuccessfully), to get a piece of the rock, after I saw his plea for help. He's pretty good, but unfortunately his dad is a bit of a donk, with no poker-related tax problems. Out of pity he has turned me on to RPT and P5's, which someday I hope will make me a little less donkish.
  9. BoomerEsiasin BoomerEsiasin is offline

    IL
    United States

    Posts: 454
    Joined: Aug 05

    Apr 14th, 2006 (4/14/2006 10:51pm) in reply to Gramps

    this gramps guy is OK!
  10. Arevirr Arevirr is offline

    Ashburn, VA
    United States

    Posts: 278
    Joined: Sep 05

    Apr 14th, 2006 (4/14/2006 11:06pm) in reply to BoomerEsiasin

    YOU NEED TO READ THIS!!!!

    http://www.pocketfives.com/DD6E4B33-...BE6A8AF8C.aspx
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