Taxes- Please Help!?!

[SlyAK]

I have just found out from a friend of mine that I probably should have been paying "Estimated Quarterly Taxes" on my poker income. I havent been, since I have never heard of these taxes before. (Also I started playing poker in Jan, and never dreamed I'd make more than a couple grand profit).

I will probably make about 30k in poker winnings this year. I understand all the basics of the W2-G form, keeping track of winnings and loses, etc. I have been planning to pay my taxes completely fairly to the 'letter of the law' as you will.

However, this estimated quarterly tax is new to me. I would appreciate more information on the estimated quartlerly tax, and more importantly what penalties, if any, will I be facing for not paying the estimated taxes quarterly?

Thank you very much for your help.

Sly

[jcx]

Estimated tax penalty is complex to calculate, that is why the IRS offers to figure it out for you on your return. If you intend to follow the law and poker is your main source of income, go get a CPA. You need the help of a professional if you want to do it right. They can calculate the amount you need to deposit quarterly to avoid penalties in the future.