Two Plus Two Older Archives  

Go Back   Two Plus Two Older Archives > General Poker Discussion > Beginners Questions

Reply
 
Thread Tools Display Modes
  #1  
Old 12-12-2005, 01:11 AM
Lmn55d Lmn55d is offline
Junior Member
 
Join Date: Feb 2004
Posts: 5
Default College Loans and Taxes

I apologize in advance if this question is pretty dumb, but I know less about taxes than I do about the Etoro tribe of Papua New Guinea.

I'm about to graduate this year from a very expensive university with a large amount of student loans. Fortunately, I have made a good amount of money playing online poker during the last year or so and was planning on using this to pay off my loans before I graduate.

Unfortunately, the ridiculous amount of taxes I will apparently have to pay on my winnings will put a dent in these plans. What I am wondering is if there is any way to get some sort of tax break on winnings I use to pay off student loans. I know there are a lot of other college players on these boards who are in the same boat and am hoping someone has some advice.

Thanks.

EDIT: Oh, one other things that kind of sucks. When I report my taxes I'm gonna have to report my poker income to my university and will get a lot less financial aid next semester [img]/images/graemlins/frown.gif[/img] . Any advice on this dilemna?
Reply With Quote
  #2  
Old 12-12-2005, 01:41 AM
Nightwish Nightwish is offline
Senior Member
 
Join Date: Mar 2004
Posts: 182
Default Re: College Loans and Taxes

You do get to deduct some college loan payments off your taxable income, but the deductions phase out as your income increases, so it all depends on how much you made this year. A tax program like TurboTax or a CPA will be able to walk you through this.

As for reporting your income to your university, you have a simple choice. Either you report it honestly and see your financial aid cut (as it should be), or you lie and risk getting discovered. Depending on the university, you may risk all kinds of disciplinary action up and including expulsion. Your choice.
Reply With Quote
  #3  
Old 12-12-2005, 01:47 AM
TStoneMBD TStoneMBD is offline
Senior Member
 
Join Date: Jul 2004
Location: Rome, NY
Posts: 268
Default Re: College Loans and Taxes

i wouldnt advise you to pay off your loans. youre probably getting them at a ridiculously low interest rate. you could invest your money that you would have used to pay off the loans and your ROI will excede your interest rate. not only that but your loan interest is probably tax deductible.
Reply With Quote
  #4  
Old 12-12-2005, 02:31 AM
sthief09 sthief09 is offline
Senior Member
 
Join Date: Feb 2004
Location: duffman is thrusting in the direction of the problem (mets are 9-13, currently on a 1 game winning streak)
Posts: 1,245
Default Re: College Loans and Taxes

[ QUOTE ]
i wouldnt advise you to pay off your loans. youre probably getting them at a ridiculously low interest rate. you could invest your money that you would have used to pay off the loans and your ROI will excede your interest rate. not only that but your loan interest is probably tax deductible.

[/ QUOTE ]


yeah this is basically what a lot of my professors have said
Reply With Quote
  #5  
Old 12-12-2005, 03:35 AM
jzpiano14 jzpiano14 is offline
Senior Member
 
Join Date: Oct 2004
Location: IL
Posts: 229
Default Re: College Loans and Taxes

[ QUOTE ]
[ QUOTE ]
i wouldnt advise you to pay off your loans. youre probably getting them at a ridiculously low interest rate. you could invest your money that you would have used to pay off the loans and your ROI will excede your interest rate. not only that but your loan interest is probably tax deductible.

[/ QUOTE ]


yeah this is basically what a lot of my professors have said

[/ QUOTE ]

Take this route, works for me, also use turbotax to do taxes, it makes them SOOOOOOO easy
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 10:48 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.