Anyone over 6 figures actually filing as a Pro?

[ActionBob]

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if you don't file as a pro you have to pay taxes on your gross and deduct your losses.

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This is the statement in question. Maybe I'm just misreading what he's trying to say here.

-ActionBob

[Niediam]

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if you don't file as a pro you have to pay taxes on your gross and deduct your losses.

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This is the statement in question. Maybe I'm just misreading what he's trying to say here.


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I don't see anything innacurate about his statement... what specifically is in question?

[Sniper]

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if a filing pro makes 50k for the year but has a networth of 20k

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Taxes are paid on Income, not Net Worth (unless you are dead).

[alta_chuttes]

If not filing as a pro, you pay taxes on an amount equal to your gross income minus your losses.

You do not pay taxes on your gross winnings (or income) and deduct your losses.

However, unlike a pro, you cannot report your net winnings, you must report your gross income and itemize your deducutions (e.g. each losing "session").

Losing session ("losses") are an itemized deduction, not a tax credit to be applied against the amount owed.

[TStoneMBD]

ok thank you i knew this to be the case but someone said that you can claim networth and i did a little happy dance there until i realized it was too good to be true.

[DanS]

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ok thank you i knew this to be the case but someone said that you can claim networth and i did a little happy dance there until i realized it was too good to be true.

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IOW, pay your taxes based on your net worth. "Yes Mr. IRS guy, I made $125,000 this year but I'm still in the red, asset wise. Mind if I don't pay taxes on the $125,000?" Is that what you're talking about?

[Packerfan1]

And the 100,000 goes where????

Make sure its somewhere you can get at it when you get out of prison. Don't mess with the IRS. Pay your taxes.

Pack

[threepines]

Very helpful discussion. Thank you Bobs and others. From what I've gathered, if you have two sources of income, one of which is poker, you're better off reporting your poker earnings as simple gambling winnings and not filing as a pro unless your expenses are very high. On-line part-timers generally should not file as a pro because on-line expenses tend to be minimal. This is true even if you make more money playing poker than you do in your "regular" job.

[mittman84]

I would also like to know this. I am 20 (almost 21) and my dad still claims me on his taxes since I am still in school (college). This is my first year of internet poker and will end up making 10-15K. I plan on talking to an accountant to find out what to do, but wouldnt mind a heads up if anyone knows what I should plan on. Thanks

[Nigel]

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If not filing as a pro, you pay taxes on an amount equal to your gross income minus your losses.

You do not pay taxes on your gross winnings (or income) and deduct your losses.

However, unlike a pro, you cannot report your net winnings, you must report your gross income and itemize your deducutions (e.g. each losing "session").

Losing session ("losses") are an itemized deduction, not a tax credit to be applied against the amount owed.

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So I think a 6 figure income for the year would probably mean you are going to get knocked into the highest tax bracket if filing as non-pro.