Earned bonus vs. paid bonus and taxes

[Uglyowl]

The IRS is f'd up in the fact you can't net winnings and losses.

Take this hypothetical... FULLTILT:

DAY 1: Lose $40, but earn $50 in bonus.

DAY 2: Win $100, earn $20 in bonus, paying out $60 in bonus. Leaving $10 earned unpaid.

Is that:

A. $130 gain
B. $160 gain, $40 loss
C. F it... too complicated so I am not filing

Also with Rakeback you could conceivable lose everyday and actually be ahead and then you have tons of income, tons of loss and get screwed on a ton of stuff.

[radek2166]

I am going to try to go just by neteller. +/-'s

[Uglyowl]

That's tough for us bonus whores... $ in, $ out.

[richie]

A real mess to be sure, ain't it? /images/graemlins/crazy.gif You do the best job you can i guess and hope for the best. Good luck. Not filing could be a real mistake though. FWIW, I would say B is the closest correct answer.

[Uglyowl]

I am going to do the best I can.... I know how much extra I have in my bank account and if that is not good enough.. then we will see.

[richie]

That's all any of us can do... It's not like you're trying to defraud the govt. NOT paying any tax is fraudulent, though.

[buffett]

[ QUOTE ]
DAY 1: Lose $40, but earn $50 in bonus.
DAY 2: Win $100, earn $20 in bonus

[/ QUOTE ]
I'm no CPA, but I have read the instructions for 1040 and Schedule A. My understanding is that you had gross winnings of $10 for day 1 and gross winnings of $120 for day 2. So if this was all the poker you played for 2004, you would put $130 on Line 21 of 1040 and nothing on Schedule A.

[ QUOTE ]
paying out $60 in bonus. Leaving $10 earned unpaid.

[/ QUOTE ]
This is irrelevant.

Just keep a good diary of where you played, how much you won or lost, and follow the IRS instructions.
-web