The Tax Man Cometh

[SinCityGuy]

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If it's your primary source of income, you are self-employed. Period. Especially if you have been doing it for years.

Not filing as such is attempting to avoid paying the SE tax. This is not going to end good when you do get audited one year. All that interest is going to add up.

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There is no requirement for fulltime players to file under Schedule C. If they're only making about 50K per year or less, they're usually better off filing a normal return and listing their losses as an itemized deduction. They don't have to pay SE tax if they do this. On the line for employment, they can list "none" or "retired" if they want to.

If they're making over 50K per year, in most cases they're better off filing under Schedule C and paying the SE tax because of the additional business related deductions that are allowed on Schedule C.