I decided to see where I stand for 2005, and I felt like dying

[stigmata]

[ QUOTE ]
Well that's peculiar, because by some mishaps my rakeback is always 30% of what it says under total rake.. hmmmmmm

[/ QUOTE ]

Because you get rakeback on the average table rake, NOT on what you actually paid in rake. A tight player pays less rake than the average player, but still gets rakeback on the average. This can effectively push rakeback into the ~30-40% range, so thing's aren't all that bad if you get a good rakeback deal.

[MrFroggyX]

[ QUOTE ]
[ QUOTE ]
Well that's peculiar, because by some mishaps my rakeback is always 30% of what it says under total rake.. hmmmmmm

[/ QUOTE ]

Because you get rakeback on the average table rake, NOT on what you actually paid in rake. A tight player pays less rake than the average player, but still gets rakeback on the average. This can effectively push rakeback into the ~30-40% range, so thing's aren't all that bad if you get a good rakeback deal.

[/ QUOTE ]

It depends on the site. Some sites counts on how much you personally pays in rake. Some others do like you described.

[TStoneMBD]

comeon einbert. i would be more willing to trust a site that takes $100/m in rake where my active balance is 5k than party poker where my active balance is 10k but they take 10k in rake from me per month.

my liability from the lowrake site is 5k, but my certain liability from party poker is 100k for the year.

[Jeffage]

If you're winning 10kish now, you should already be paying quarterly taxes. Talk to an accountant to avoid penalties.

Jeff

[augie00]

[ QUOTE ]
If you're winning 10kish now, you should already be paying quarterly taxes. Talk to an accountant to avoid penalties.

Jeff

[/ QUOTE ]

My dad said the same thing. I HATE BEING AN ADULT!!!

[James282]

[ QUOTE ]
If you're winning 10kish now, you should already be paying quarterly taxes. Talk to an accountant to avoid penalties.

Jeff

[/ QUOTE ]

You only need to do this if you've paid taxes on your gambling winnings in the past. Otherwise, you can't be penalized so long as you pay by next April.
-James

[turnipmonster]

if I did not pay quarterly but did pay last year, do I have to go quarterly if making over X this year. if so, any idea on what X is? I should probably talk to an accountant about this I know.

[James282]

[ QUOTE ]
if I did not pay quarterly but did pay last year, do I have to go quarterly if making over X this year. if so, any idea on what X is? I should probably talk to an accountant about this I know.

[/ QUOTE ]

Yes - unless you know exactly what you will make, you should be paying %110 of what you would have paid as quarterly payments last year. If you somehow make less than you did last year, you can get a refund - but if you do not pay %110 quarterly payments(at least) and then make up the difference in your April payment, you will probably be penalized.
-James

[augie00]

I think I am in a very weird and dangerous spot. For the last three years I have been working a retail job making ~3,000/yr.

I will be making a jump from $3,000/yr to what will amount to be about ~$35,000/yr (if I stay on track). This will draw the attention of the IRS, wouldn't it? I wish I could just send them a check for $10,000 next April and have them never look at me.

[James282]

[ QUOTE ]
I think I am in a very weird and dangerous spot. For the last three years I have been working a retail job making ~3,000/yr.

I will be making a jump from $3,000/yr to what will amount to be about ~$35,000/yr (if I stay on track). This will draw the attention of the IRS, wouldn't it? I wish I could just send them a check for $10,000 next April and have them never look at me.

[/ QUOTE ]

Your spot isn't as precarious as you think. Most young pros that I know went from like 0 to 6 figures in a year and I've yet to hear of anyone having any problems. You're allowed to gamble. If you pay taxes on it appropriately, you'll be just fine.
-James