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#1
12-01-2005, 02:57 PM
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Tax return question
Due to me being in school most of my life, and my dad enjoying the tax break from having a dependent, I will be filing a return the first time next year.
The salary I get from my job will be easy enough to calculate, but I have a question regarding poker winnings... I anticipate being in the black on poker for the year, but I know that the typical way to report is to write your total winnings in, then deduct your total losses. Would it be problematic to simply declare your profit as income, and list no losses as a deduction? I apologize for such a noobish question, and I'm sure I'm probably overlooking a basic mathematical concept in the process, but I think one of you can answer it better than I can research it. 
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#2
12-01-2005, 03:11 PM
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Re: Tax return question
might lose you some loot
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#5
12-03-2005, 01:30 AM
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Re: Tax return question
I'm told (by pokerstars and Party) that they do not report any information to any governments regarding customer transactions. Is this a moot point if I'm using netteller and/or depositing cashouts directly to my checking account (so the IRS would be able to track easily)?
Seperate scenario: I cashout for less than $10k from an on-line site via check which I cash at some place other than my personal bank. Appear to be a safe way to cash out and not be accounted for???
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#6
12-03-2005, 01:34 AM
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Re: Tax return question
[ QUOTE ]
Seperate scenario: I cashout for less than $10k from an on-line site via check which I cash at some place other than my personal bank. Appear to be a safe way to cash out and not be accounted for??? [/ QUOTE ] Ever try to cash a check at a bank where you don't have an account? Unless it's a branch of the bank it's drawn on, I doubt you'll be successful.
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#7
12-03-2005, 04:17 AM
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Re: Tax return question
[ QUOTE ]
I'm told (by pokerstars and Party) that they do not report any information to any governments regarding customer transactions. Is this a moot point if I'm using netteller and/or depositing cashouts directly to my checking account (so the IRS would be able to track easily)? [/ QUOTE ] I'm pretty sure this doesn't matter if you are audited. I've read (but I'm not sure) that the IRS can simply require you to provide the documentation. So even if the site won't give it to the IRS, the IRS can demand the records from you and you will have to get them from the site. Not positive on that, but it's what I've read and it makes sense.
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#8
12-01-2005, 03:14 PM
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Re: Tax return question
No. You cannot list the net winnings. You must list the gross winnings and the gross losses separately (which if you add them together give you your net winnings anyway).
On a related note, you probably won't want to claim the standard deduction if you are reporting gambling winnings, otherwise you cannot deduct your losses. TT [img]/images/graemlins/club.gif[/img]
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#9
12-01-2005, 03:27 PM
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Re: Tax return question
Interesting...I will have to look into what deductions I took on my paycheck(I recall it was as many as possible) to avoid that problem.
Also...it will all depend on whether or not my profit for the year is significant enough to report...I mean, would it be an issue to not report $500 or so?
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#10
12-01-2005, 04:15 PM
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Re: Tax return question
The deductions on your paycheck have nothing to do with itemized deductions you take on your tax return. The standard deduction for 2005 is $5,000, so if your total itemized deductions (including your gambling losses) are less than that then you can't itemize.
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