Bonuses, Sessions and Taxes
 

Ok, first off, I know bonuses are taxable -- that is not my question.

I consider a session to be a contiguous time period playing on one site even if there are multiple tables involved.

Scenario:

Session 1 (4-tabling) - up $75
Session 2 (4-tabling) - up $25
Session 3 (4-tabling) - down $50
Bonus: cleared $100 bonus during session 3

Without the bonus, I would report total winnings of $100 (S1 + S2) and total losses of $50 (S3).

What to do about the $100 bonus during session 3?

Option 1: Consider this to be total winnings of $200 (S1 + S2 + bonus) and total losses of $50 (S3)

Option 2: Consider the bonus to be part of my income from session 3 thus making the net for session 3 +$50 now -- so now I would have total winnings of $150 and losses of $0

I'm curious to see what others think. I think I could make a good argument for option 2.

Re: Bonuses, Sessions and Taxes
 

Its all good until you get an audit, then you would rather you followed their rules.

Re: Bonuses, Sessions and Taxes
 

From this link, I would say I have no problem with the definition of a session.

The question is are awarded bonuses considered part of your session in which you earned them or are they considered independant sessions?

Re: Bonuses, Sessions and Taxes
 

I would have thought they would just be "other income" and unrelated to particular "sessions."

Re: Bonuses, Sessions and Taxes
 

I put bonuses and rakeback in the "additional misc. income" area. It is not wagered and paid more like an hourly wage for independant work.