Can a Graduate Student File as a professional gambler?

[tarath]

I play poker online and am also a grad student.

I get paid a stipend for living expenses as a gradstudent of 25k a year.

I also play online poker.

Can i file as a professional gambler? Do I need to make sure to win a certain amount of money relative to my stipend to do this? Grad-school isn't really i job (I don't think) but as I recieve a stipend I'm not sure what the rules are

Thanks in advance for your help

[tarath]

Also is it worthwhile for an online player to bother with this?

[doormat]

Why would you want to file as a professional? It is unlikely you have any large expenses related to gambling to deduct, and if you file as a pro you will be liable for self-employment tax. My advice would be just to declare poker winnings as "other income".

disclaimer: I am not an accountant and would advise seeing one before making decisions such as these.

doormat

[Hiiiiiiii]

How do you get 25k a year?

[tarath]

the school pays me 25k a year for books/lvingin expenses, I get monthly checks.

I have heard its good to file as a pro as then you can report your net profit rather than having to itemize deductions to deduct your loses.

[adanthar]

I am a lawyer but not a tax lawyer or a CPA, this isn't legal advice, consult a tax pro, blah blah blah:

From other posts here, the IRS has lately sent letters to students asking them to file as a pro lately, not the other way around, so you probably won't have any problems if you file as a pro if your winnings are significant. Before filing, check to make sure this won't affect your student aid, any scholarships, or break a requirement from the school not to work etc. etc.

Also, unless you have a six digit income from this, get hit by the AMT if you don't do it this way, or live in a state that disallows gambling loss deductions, you might be better off just filing as a hobby. Again, it's going to depend on the raw numbers.

[tarath]

[ QUOTE ]
I am a lawyer but not a tax lawyer or a CPA, this isn't legal advice, consult a tax pro, blah blah blah:

From other posts here, the IRS has lately sent letters to students asking them to file as a pro lately, not the other way around, so you probably won't have any problems if you file as a pro if your winnings are significant. Before filing, check to make sure this won't affect your student aid, any scholarships, or break a requirement from the school not to work etc. etc.

Also, unless you have a six digit income from this, get hit by the AMT if you don't do it this way, or live in a state that disallows gambling loss deductions, you might be better off just filing as a hobby. Again, it's going to depend on the raw numbers.

[/ QUOTE ]

Thanks, this is really helpful. My poker income is only going to be in the 5 figures, I live in CA.

The only one that worries me is the AMT.

Without poker my wife and I make about 100k so I will have to figure out if poker might push me into the AMT.

I hate the AMT

[Pokerdemic]

25 k a year stipend? I am guessing you are not in the humanities=)

[yahboohoo]

To clarify some terms:

A "professional" is someone who is entirely dependent on a given activity to support himself/herself.

A "semi-pro" is someone who is somewhat dependent on a given activity to pay monthly bills, but is also dependent on some other activity to suplement his/her income.

An "amateur" is someone who does an activity purely for self-enjoyment. Any money they make is not needed to make ends meet. (Contrary to what some believe, an amateur is not necessarily someone who always does something for free.)

For the purposes of this thread, I don't think it makes any difference whether you call yourself a "pro" or not. The IRS wants you to claim your income -- period -- regardless of its source or origin. The only question remaining for the OP is does he want to go through the hassles of itemizing, self-employment, etc.