Re: I need tax advice
Here's a simplified explanation:
Your first option is the best, even if you don't have many expenses to deduct. This is also known as filing as a professional gambler and it allows you to pay taxes on your earnings. However, if you do not have detailed records you can almost forget about filing this way.
The second option REALLY sucks. Winnings are added to your income. Losses can only be claimed as a deduction and even then you can only claim up to the amount of winnings you claim.
As for your final line...if you make money playing poker and don't want to be faced with stiff penalties and payments of back taxes, do yourself a favor and report your income.
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