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Need Help With Taxes
This is my first full year playing poker on-line. I've been tracking my sessions daily by site. My spreadsheet shows date, site, beginning balance, and ending balance. So, each day at each site shows either a winning session or losing session.
I live in Wisconsin, so I pay both federal and WI state taxes. Here are my current totals when I add up my winning sessions and losing sessions: Wins: 5,362 Losses: 3,568 Net won: 1,794 For federal taxes I can deduct the losses, so I will be taxed on the net of 1,794. For my state taxes, though, I cannot deduct the losses. Therefore, I am taxed on 5,362. If I approximate 25% taxes, fed taxes will be 449 and state taxes will be 1,341 for a total in taxes of 1,790. This basically leaves me with a total profit for the year of $4. Does this sound correct? Does anyone have any experience with this, especially the state taxes? If I was winning even a little less, I'd actually be losing money after paying taxes. Is there any way to legally get around this? Thanks in advance for any help you can give me! Crash74 |
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