tax confusion
I am confused about how to report my poker winnings to the IRS.
Some relevant information:
1) It sure as heck feels like I’m a poker professional.
2) On my 2003 return, I listed my profession as “poker player since 2/04”. However, I didn’t have poker income in 2003.
3) I don’t have another significant source of income.
4) My unstanding is that if I declare myself a professional, I get the advantage of deducting my expenses
5) I understand that if I am a professional, I have to pay self employment tax
6) If I’m not a professional, I’m confused about whether I have to pay self employment tax or not.
7) In my case, self employment tax amounts to more money than my expenses.
8) My understanding is that if I say I’m a professional, the IRS may fight this. However, if I say I’m not, they won’t argue with me.
Any help out there?
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