Sticky/How-To About Filing Taxes?

[Mr_Donktastic]

Just wondering if anyone out there who knows the ins and outs of this stuff could write up something to guide all of us clueless newbs...or if this has been already if someone could direct me to it/sticky it.

2007 is my first year as a poker pro and I have no idea what I should be doing at this point to be ready for the next round of filing. I keep daily records of net wins and losses but that is about it. I'm used to using standardized deductions so I have no clue about what expenses I should be tracking or even how to go about doing it.

Help plz!?!?!?!

[1p0kerboy]

Donktastik,

I can give you some basic advice as to the research I've done. (I got the 2 popular tax books and have already asked a zillion questions on this board).

I highly recommend How to Turn Your Poker Playing Into a Business by Ann-Margaret Johnson.

1. You should file quarterly taxes. This can easily be done from TaxCut or one of the other programs.
2. When you file at the end of the year, you are going to file a Schedule C with your 1040. Your wins will go in box 1 and your loses in box 4. Box 5 is your gross profit.
3. Read the book I mentioned to find out what deductions you can claim for business expenses. Books and internet can be deducted for internet players and for live players some gas and travel expenses can be deducted. These will go under Part 2 of your schedule C. Also health insurance and a SEP retirement plan are deductable.
4. You must also file a Schedule SE. This is self-employment tax which goes to pay social security and medicaid. It typically works out to be about 15% of your income, but half of that is deductable from your gross income. (The booklet or program will explain all of this in more detail and guide you through it a little better).
5. When all is said and done, your net profit from your business (from line 31 of your Schedule C) is going to end up on line 12 of your 1040. At that point you can decide whether you want to itemize personal deductions or just take the standard deduction. Note this is separate from your business deductions, which you have already claimed and subtracted on your Schedule C.

Hope this makes some sort of sense.

[1p0kerboy]

Here is a link to links of prior tax discussions. (http://forumserver.twoplustwo.com/showflat.php?Cat=0&Number=4712394&page=0&vc=1#Post 4712394)

[1p0kerboy]

Also PM me if you wanna go over some of this stuff on the phone sometime.

[plasphemy]

RBS Tax Services "The Tax Guide for Gamblers" gave me all the help I needed. Well worth that $40 investment.

[break0ut]

I was trying to start one of these a week or so ago but I've been swarmed these past two weeks with new clients. I'll post some stuff in here in a few days to help.