Burden Of Records When Filing Taxes

[moondogg]

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Sorry... I'm aware of that, but you have 9k in losses deductions. So the net is the same. What effect does the adjusted gross income have on a tax basis?


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A) It may disqualify you from contributing to a Roth IRA
B) IMHO, if you get audited, it gives the IRS a higher amount of income to claim is taxable. In other words, they will believe every cent of your winnings, but demand documentation for your deducted losses.

[Jaquen H'gar]

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2) This forces you to itemize your deductions, which depending on your situation may not be a positive.


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Right, I will lose my standard deduction in this case. I was thinking of going the Schedule C route. Any problems using this for online poker?

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I believe this would require you to pay the employer side of the taxes (e.g. Social Security, etc). If I remember correctly, it's another 7% of taxes.

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Yep, 7% extra. I've filed Schedule C for the past three years. Of course, I have a CPA who does most of the work but he tells me 7%.