Taxes: Does this seem right?

esknights · #1 03-06-2005, 04:15 PM

I just filled out an E-tax online to see what my refund or lack there of would be. Before including poker, I was going to receive a refund of about $600.

I then went back and put in gambling winnings under other income. I put in $7000 and the program said I owed the IRS about $500. So I guess that is a turnaround of $1100 which is 15% of my winnings.

This was just a rough draft. I only included my net poker income which I am sure is not right. I looked into filing a Schedule C, but was unsure of how this would work. What are the advantages of filing a Schedule C or C-EZ.

Also, shouldn't the IRS be happy that I am even attempting to claim my gambling winnings as I believe that most people do not?

AcmeSalesRep · #2 03-06-2005, 06:45 PM

If you are in the 15% Federal tax bracket, then that looks about right (as an estimate) to me.

And yes...the IRS should be happy that you are trying to pay taxes in a reasonable manner. Taxes that most people ignore or don't know they should pay. But they have a policy that screws gamblers, so they won't be happy with anything less than 2 pounds of your flesh!