taxes

[mistrpug]

[ QUOTE ]
Well, I guess I did overstate it and didn't qualify what I meant by "in the red". What I mean is that for a 1k a month player who has a job and takes the standard deduction, you will be taxed on approx 16k of additional income instead of the 12k of income you really made. If you already make $30k/yr and take the standard deduction, your tax liability will be about $1200 more than it would be if you took a 2nd job and made 12k of additional income. That's a 10% gross penalty for poker, which is a big financial hit--particularly if extended over time. If you wind up having a break-even year, you may pay taxes on income you never received.

[/ QUOTE ]

All that is correct, but one thing you left out is that if you itemize deductions, there are some other deductions you may be able to make that you would not have otherwise. This can go a long way towards making up for the loss of the standard deduction. I know in my case, my state and local taxes (which you can deduct if you itemize) are so high that I'll barely have to take a hit for losing my standard deduction. I don't know if that's a good thing or a bad thing. :-)