Ways of reporting poker winnings
Last year I filed a schedule C to claim about $5000 in net poker winnings ($25,000 in total winnings - $20,000 in total losses). This amount was subject to self employment tax of about $700.
I have heard that it's possible to report total poker winnings as "other income" (line 21 on form 1040) and total losses as a schedule A itemized deduction. If I can do it this way I wouldn't have to pay anything in self employment taxes, right?
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