Taxes and Parents

Thythe · #1 02-09-2005, 05:35 PM

So I've been playing poker for the last 1.5 years now. This year I decided that I better pay taxes as the amount I've earned has grown to a considerable amount. The problem being that my parents do my taxes (since my Dad is an accountant type) and that they do not know about my poker playing.

So I decided to e-mail them about the whole situation and tell them about my secret 5 figure gains over the last year. So when they call me back in a rage, what should I tell them to make them understand the situation?

Cleveland Guy · #2 02-09-2005, 05:37 PM

[ QUOTE ]
So I've been playing poker for the last 1.5 years now. This year I decided that I better pay taxes as the amount I've earned has grown to a considerable amount. The problem being that my parents do my taxes (since my Dad is an accountant type) and that they do not know about my poker playing.

So I decided to e-mail them about the whole situation and tell them about my secret 5 figure gains over the last year. So when they call me back in a rage, what should I tell them to make them understand the situation?

[/ QUOTE ]

I think you need to grow up first off.

Call your parents - don't send this in an e-mail. I'm not sure how old you are, but your failure to be open and honest with your parents, and to communicate with them effectively probably is a big part of this problem you are having.

If you are an adult, and not asking them for money - what's the problem?

jagoff · #3 02-09-2005, 05:54 PM

Since I know you and I know a little about the situation lemme see if I can give you some insight. First off tell them that your playing in no way has hindered your studies at school. Tell them that this is easing the burden of paying off school too (unless of course you got a full ride). I think that you should let them cool off from the initial shock and then prepare a plan to explain to them what you are doing and how you are going about doing it (eg. WHORING). Let them know that this money will not be lost by placing all your money on black at a roulette table and that you are a little more wise about money handling. Also the email thing was a definite bad move unless of course that is the only way you communicate with your family but with all the money you have whored you can at least afford a cell you cheap bastard! Looks like it's time to make a weekend trip home and explain yourself. Good luck!

gazarsgo · #4 02-09-2005, 06:41 PM

Your dad is an accountant, you shouldn't have trouble explaining the math of poker to him.

But, asking him to help you out with claiming taxes on your winnings is a very mature move and I have a hard time seeing trouble coming out of it unless your parents are pretty big control freaks, which is possible with an accountant dad I guess [img]/images/graemlins/smile.gif[/img]

The documentation that is required that your dad will ask for in filing your taxes (some kind of session export from pokertracker, I imagine) will probably help them understand it is neither a fluke nor a coincidence that you've won at poker. Unless you just have a couple huge MTT finishes [img]/images/graemlins/grin.gif[/img]

Thythe · #5 02-09-2005, 06:47 PM

Thanks for the responses everyone. I think they'll understand the math behind it, but probably never really get over the inherent idea of gambling as an income source. But it is what it is. The alternative of getting jacked by the IRS in the future and then explaining it seems much worse.

octop · #6 02-09-2005, 07:18 PM

My father hates gambling since his dad had a gambling problem, so I guess hes worried I would do the same thing. So i just don't tell him where the money I give him comes from

gonzo787 · #7 02-10-2005, 02:05 AM

I'm 26 and the look on my parents faces was priceless when I told them about my poker adventures a year or so ago. Once they got used to the idea, they have been extremely cool about it. Now they actually enjoy listening to me talk about my winnings. So Thythe, their reaction may surprise you.

Is doing your own taxes an option? Even so, you probably should tell them (and probably should have told them sooner).

LLXC · #8 02-10-2005, 02:27 AM

[ QUOTE ]
Is doing your own taxes an option?

[/ QUOTE ]

Not letting your dad, who is an accountant, file your taxes would be suspicious to him.

AncientPC · #9 02-10-2005, 02:36 AM

I'm in a similar situation since my parents' friend does our taxes.

I keep track of my daily winnings / losses for the day I have to explain to my parents where all the money comes from. They'll see the ups and downs, but will see that the line goes up in the long run.

BTW, if poker is your sole source of income you need to pay taxes quarterly right?

Emperor · #10 02-10-2005, 04:41 AM

Thythe,

You have mentioned this issue in the past.

You dad seems like the type of guy that expects to be respected, you should do the same, and he will respect you. People treat you like you expect to be treated, and if they don't. You quickly realize they aren't woth your time until they come around.

Email! That is a GREAT idea. You can be articulate. You can avoid sounding like you are doing something wrong. You can give lots of account history, math, and stats. This will also give your dad awhile to digest the information.

My parents used to bug the crap out of me about getting a job. I finally printed off my account sheet for the month showing I made more than my dad that month (which I had). They haven't said a word since. Actually they have been very supportive, finally.

Don't allow your parents to treat you in a way that is unacceptable to you. If you let them, then they will think that it is ok. It isn't BTW. You deserve to be treated as an adult if you act like one.

You are doing the adult thing by paying your taxes. If your Dad doesn't approve, you can always hire someone else. Don't be afraid to put him in his place.

BTW most kids do this at some point in there lives because parents like being in control. Controlling another adult is not acceptable behavior, it is abuse. Don't be abused.