Re: Need Help With Taxes
Yes, you should only pay $107 in State taxes on your winnings. There probably isn't any provision in the State taxes about not netting wins/losses - so go ahead and net it.
The Feds are particular in wanting winning "sessions" and losing "sessions" kept seperate, and not to net the results.
However, they have not provided a defintion of what a session is. For online purposes their is a good argument to be made that your session extends from buy-in to cash-out, although you have chosen to define session as daily.
Don't worry about the illegal thing. You are declaring income, I wouldn't be too specific as to exact source. Besides, if the State tried to use that as evidence against you, you have an out of not paying taxes at all due to rights against self-incrimination. Hence, taxing bodies don't share information with legal authorities, or try to press a case from it.
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