mid year TAX question

greg nice · #1 07-01-2005, 02:02 AM

have no job this year and all my income will be from playing online poker.. therefore i havent paid a cent in taxes so far this year.

am i supposed to pay quarterly taxes? what if i dont? is there a huge penalty? i will be making a good amount more than i did last year..

Jeffage · #2 07-01-2005, 07:09 AM

You should be paying quarterly taxes (it's mandated by law if you will owe the IRS more than $1000 on April 15). Consult an accountant. I believe the first year you screw up and don't do this, there is a waiver of the penalty providing you pay the next year's quarterly at the same time you pay what's due on April 15. I could be totally wrong about that, but I don't think I am. Simply consult an accountant tomorrow (its like 250 for them to take care of you with quarterlies - vouchers and all).

Jeff

obsidian · #3 07-01-2005, 09:20 AM

Hmm, good info. I work full time and play part time, but I've made about 9.5k since I started playing poker 4 months ago. Looks like it is time to find an account...

greg nice · #4 07-01-2005, 09:54 AM

where do you recommend i go to find an accountant? should i just call up an H & R block? or should i get someone better? i live in NJ.

NSchandler · #5 07-01-2005, 09:58 AM

Get a CPA - H&R block doesn't know its head from its ass

Jeffage · #6 07-01-2005, 11:05 AM

CPA for sure, esp. since we're talking about a decent chunk of money (somone who makes an extra 10k or whatever could possibly go to H&R). Google one in your area, call him, explain the situation and that you need help. You should get a read on whether he knows what he's talking about or not; make sure he seems familiar with tax issues relating to gambling.

Jeff

Guthrie · #7 07-01-2005, 11:45 AM

[ QUOTE ]
Get a CPA - H&R block doesn't know its head from its ass

[/ QUOTE ]
Ask around, especially people who run small businesses. All the commercial tax form preparers are just that, tax form preparers, and aren't worth diddly on an ongoing basis.

BottlesOf · #8 07-01-2005, 02:26 PM

About this waiver ont he first year...Do they inform you with a letter or something, that you earned enough taxable income in such and such a year, and they are wiaving the penalty for the first offense?

I don't thiiink I should've paid quarterly last year, I don't think I earned enough, but I'm not sure. This year I DEFINIITELY earned enough, but haven't paid Quarterly, so I would think this year is my warning year...

molawn2mo · #9 07-01-2005, 02:55 PM

To the OP and others that have responded...

The tax implications on Gambling winnings are not cut and dry, that is to say, the reporting of winnings may be handled in different ways for different individuals in different circumstances.

It is not a complicated matter but it is individual in nature.

I am part of a 2 person CPA firm with an office in NYC. Anyone interested in pursuing this further should PM and I will talk with you about some specifics. I am also a winning player [img]/images/graemlins/smile.gif[/img] and understand the poker scene.

Jeffage · #10 07-01-2005, 03:14 PM

Molawn is 100 percent correct. I gave some basic advice based on my experiences, but I am not an accountant. Definitely consult a professional to see how you should file based on your specific tax situation.

Jeff