OMG!! Smart people answer me dis $TAX$$

[AlienCorpse]

I'm doing my estimated taxes for this years income and I'm not filing as a pro (I believe I read somewhere that you shouldn't file as a pro unless you can show gambling winnings for the last 3 years), and I saw self employment tax on the form and I was wondering if I'm not filing as a pro, then I assume under occupation (since I'm not filing as a pro) I would put unemployed, and if I'm unemployed then there is no self employment tax. So would I have to do self employment tax?

I'd rather not have the IRS calling me up and fining a penalty on my ass. I'd also rather not pay self employment tax if I don't have to because I know the IRS won't bother to correct me if I'm wrong.

Other thing to note is I will not have any other source of income this year.

[GrannyMae]

if your total income is 7k, you have to file under law.

we have to pay to keep our country our country, tax evasion is such a scummy move and i'll tell you this as well. more people do hard jail time on tax evasion charges than any white collar crap.

if you are a kid living at home that made 7k last year, forget it. you are not required to file. if you made substantially more, you gotta do the right thing.

if you made between 7k and 15k, pay the $40 consultation with an accountant at h&r block because there are standard deductions that may allow for more earnings than 7k without owing taxes, but having to file. you have to file over 7k even if your actual tax owed turns out to be zero.

ok, that's my last tax speech, i will ignore the scum sucking, society sucking trolls that say crap to me about this post and i will stay out of these bottom feeding leeches threads when tax time approaches. the threads make me sick so i ignore them.

finally, remember that in jail for your 6 month term, don't expect a reach around unless it is to break your nose.

[LinusKS]

[ QUOTE ]

finally, remember that in jail for your 6 month term, don't expect a reach around unless it is to break your nose.

[/ QUOTE ]

That's pretty harsh. Who're you addressing?

Also, I've never heard of that 7k thing before. Where'd that come from?

[GrannyMae]

last year, if you made $6,900 or less, you were not required to file. i'm assuming the number is still close to that. all these laws at irs.gov.

[GrannyMae]

That's pretty harsh. Who're you addressing?


tax evaders.

[mosquito]

My understanding is that you only pay SE tax on
earned income.

Gambling winnings filed as misc. are not earned,
not matter how you may feel.

[UncleDuke]

I'm pretty sure mosquito is correct. If you are not filing as a pro, there is no self-employment tax on gambling winnings. I'm not sure the three-year thing is necessarily accurate though as far as what makes you a pro. The definition seems to be extremely fuzzy, so if you had substantial gambling income and no other job, it might be worth getting a tax pro's opinion.

[SinCityGuy]

You only pay the SE tax if you file under Schedule C as a Professional Gambler.

[SteveY]

[ QUOTE ]
last year, if you made $6,900 or less, you were not required to file. i'm assuming the number is still close to that. all these laws at irs.gov.

[/ QUOTE ]

Would state/local tax laws follow suit with this?

Or IOW, is the 7K limit strictly a federal issue, and I would still have to pay state/local taxes (depending on the state laws) even if I made under 7k?

EDIT: I searched irs.gov and found this:
http://www.irs.gov/faqs/faq2-1.html

How much does a student have to make before he or she has to file an income tax return?

If you are an unmarried dependent, you must file a tax return for 2004 if you have earned income of more than $4,850 , unearned income of more than $800, or if your gross income is more than $800 and exceeds your earned income by more than $250. If part of your earned income is from tips, see Tax Topic 402, Tips .

So I guess it's changed?

[Fraubump]

[ QUOTE ]
we have to pay to keep our country our country

[/ QUOTE ]

Ok, but can I pay more to have our country change sexes and become a nice country like Sweden?

[MicroBob]

[ QUOTE ]
I'm not sure the three-year thing is necessarily accurate though as far as what makes you a pro. The definition seems to be extremely fuzzy

[/ QUOTE ]



agreed. i've seen the 3-year things bandied about before but it doesn't make sense it certain cirumstances.
For example, I wasn't even playing poker (didn't know how) 3 years ago. Now it is my sole source of income. Obviously I am obligated to file as a pro even though I've been doing it for less than 3 years.


I believe the 3-year thing applies to some other aspect of self-employment but I'm really not sure what.

[El Barto]

[ QUOTE ]



I believe the 3-year thing applies to some other aspect of self-employment but I'm really not sure what.

[/ QUOTE ]

The 3 year rule is aimed at self-employed people in volatile occupations where in any given year you may have either a gain or a loss (like the oil industry and other speculative fields). You have to prove that you are a long term earner, and are not just trying to write off your current year losses against other income streams.

By the time a poker player might face an audit, you will have additional years of winning poker play anyway that you can point to.

Not every guideline used to determine if you are a professional (and there is a list of them) applies to everyone, it depends on the nature of your profession.

[GrannyMae]

How much does a student have to make before he or she has to file an income tax return?

If you are an unmarried dependent, you must file a tax return for 2004 if you have earned income of more than $4,850 ..............


So I guess it's changed?

well, this is not what i was referring to. you are looking at the filing requirements for an unmarried <font color="red">dependent</font>


for a non dependent, here is the tax law

<font color="green"> Who Must File a Tax Return

Tax Tip 2005-3, Jan. 5, 2005

There are some instances when you may not be required to file a federal income tax return. But keep this in mind — more than 70 percent of those who file are due a refund, so it may be to your advantage to file even if you are not required to.

The law does require you to file a tax return if your income is above a certain level. Check the instructions for Form 1040, 1040A or 1040EZ (under "filing requirements") for specific details that may affect your need to file a tax return with IRS this year.

Here are some general guidelines for anyone under age 65. Remember, these guidelines may change based on your particular situation. In general, once you have the following gross income amounts, the law requires you to file a federal tax return with the IRS:

Single — $7,950
Head of Household — $10,250
Married Filing Jointly — $15,900
Married Filing Separately — $3,100
Qualifying Widower (with dependent child) — $12,800

Generally, a person who is self-employed must file a tax return if his or her net earnings from self-employment for the year exceed $400.

Even individuals who don't earn enough to be required to file a tax return may be eligible for an earned income credit up to $2,604 for a taxpayer with one qualifying child and $4,300 for a taxpayer with two or more qualifying children. Some individuals who do not have a qualifying child may be eligible for a credit of up to $390. However, you must file a return to receive the Earned Income Tax Credit. You must also file a return if you received any advance payments of this credit while you worked during the year.


</font>

so, it has gone up to $7,950. but remember that there are many instances where you can have earned more, do NOT owe taxes, but you still need to file.

[etgryphon]

The whole three year things is for "business" endevors. You can show losses for three years before your "business" can be classified as a "hobby" and thus no eligible for loss writeoff.

-Gryph