Tax Question

bighomage · #1 05-26-2005, 04:55 PM

I'm 18 and I've been playing on Party Poker for about 3 months. I live in Indiana, and my parents are still my main source of income for living expenses and they'll probably pay for a lot of it when I go off to college. From time to time, I take some money out of my bankroll to pay for my miscellaneous expenses from time to time. Over the course of the year, I'll probably take out about $1500. Am I really going to have to pay taxes on this? I'm assuming the answer's unfortunately going to be yes. Should I just put some money aside that I'm going to have to give up come tax day? If so, how much should I expect to pay. I've never filled out a tax form so this stuff's over my head. Any advice would be appreciated. I also live in Indiana if that matters. Thanks.

eric5148 · #2 05-26-2005, 04:57 PM

I assume your parents are claiming you as a dependent?

Do you have any other income?

bighomage · #3 05-26-2005, 05:04 PM

Not really. I might get a summer job and I'll have a campus job at college but that goes towards that financial aid package.

eric5148 · #4 05-26-2005, 05:08 PM

Ok, if you won't be making that much then you'll be able to take the standard deduction, and you won't need to itemize deductions.

So you can just add your total poker winnings to your income from other jobs.

Be sure to keep detailed records of what you won/lost each day or session, so that if you get audited, you can prove whatever you put on your tax return.