Re: I need tax advice
method 1: file as an individual
- total session wins go on 1040 as "other income"
- total session losses to the extent of wins go as deduction on Sch A
drawbacks to this method: 1)losing deductions if you normally take the standard deduction, 2) phaseout of exemptions if the numbers get large.
method 2: file as a professional gambler
-You put the stuff on schedule C including expenses (like home office, ISP etc.)
Drawbacks to this method:
- self employment tax on top of regular tax
- increased auditor scrutiny, especially if they don't define you as a professional gambler
method 3: don't file
- possible civil and criminal penalties
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