So if I don't pay my taxes...then what??

[Corey]

[ QUOTE ]
How are you reporting it? Because th IRS wants a blow by blow, session by session breakdown. They strictly say that netting your gambling for the year is not the way to do it. So if you win $100,000 and lose $100,000 over the course of the year, you owe taxes on the $100,000 before any deductions are applied. Not cool.

[/ QUOTE ]

That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.

[Osprey]

Ah, but then there are happy fun states that don't allow gambling losses to be deducted.


That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.

[/ QUOTE ]

[Krazy Dan]

[ QUOTE ]
That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.

[/ QUOTE ]

And that is the problem. You end up paying taxes on what is obviously zero income, an infinite marginal tax rate. I call this a useful application of the Laffer curve: it's not that people work less when in higher marginal tax rates, but that people are much less likely to report "income" when it is going to be taxed above 100%.

You have incentive: you don't want to pay tax. You have the opportunity: the IRS doesn't know about your gambling winnings. You have the justification: the tax is over 100% and far from fair. There we go, fraud triangle.

It's the same stupidity with the hobby income. Who reports hobby income unless they can weasel it on a Schedule C? An agreement starting with "Why, yes, Mrs. Fluffenstuff, I'll mow your lawn for $10 per week" certainly won't find its way to Line 21 of Form 1040, even on the tax return of the most honest taxpayers.

[jman220]

[ QUOTE ]
[ QUOTE ]
How are you reporting it? Because th IRS wants a blow by blow, session by session breakdown. They strictly say that netting your gambling for the year is not the way to do it. So if you win $100,000 and lose $100,000 over the course of the year, you owe taxes on the $100,000 before any deductions are applied. Not cool.

[/ QUOTE ]

That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.

[/ QUOTE ]

This would actually make it very very bad I think for any college student on financial aid to have to report. Even if they only make a few thousand dollars playing poker in that year, wouldn't the fact that they are bumped into a much higher tax bracket negatively impact their FAFSA? (I'm assuming for example that a $5,000 net profit for the year could actually mean something like $50,000 in winning sessions and $45,000 in losing sessions, variance being what it is.)

you guys can say what u want, but i dont believe in war or paying for it. When all the troops are out that when ill pay taxes on my three hundred dollars i made last year hahahahahaahahahah

[gildwulf]

[ QUOTE ]
you guys can say what u want, but i dont believe in war or paying for it. When all the troops are out that when ill pay taxes on my three hundred dollars i made last year hahahahahaahahahah

[/ QUOTE ]

Whats that mean and whos that idiot

[mattw]

[ QUOTE ]
Whats that mean and whos that idiot

[/ QUOTE ]

did mcvicker get a new handle? atleast his caps are off.

[Jimbo]

[ QUOTE ]
you guys can say what u want, but i dont believe in war or paying for it. When all the troops are out that when ill pay taxes on my three hundred dollars i made last year hahahahahaahahahah

[/ QUOTE ]

Translation: I cry like a baby at night being so afraid I might actually be needed to serve my country and place other lives and their welfare ahead of my own.

(Translation: I cry like a baby at night being so afraid I might actually be needed to serve my country and place other lives and their welfare ahead of my own. )

DUDE IF U THINK US IN IRAQ IS HELPING ANYBODYS WELFARE? WELL THEN U NEED TO GET OFF THE WEED. ALSO THIS COUNTRY IS ALL ABOUT PUTTING PERSONAL NEEDS AHEAD OF OTHERS NEEDS JUST LOOK AT OUR SENATE AND CURRENT ADMINISTRATION. WAKE UP U JACK OFF AMERICA IS ALL ABOUT SCREWING THE NEXT GUY LOLOLOLOLOOOLOOHAHAHAHAHAAHAHAHAH