Re: Ways of reporting poker winnings
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I didn't make that much money in 2006 because I was in school for most of the year but my net poker winnings where more than what's on my W-2
Poker: $8300 ($33,500 winnings - $25,200 losses)
W-2: $4500
I did my taxes both ways last night and found that my tax liability increased by $819 when I used schedule C to report my poker winnings.
TL Schedule A way: $377
TL Schedule C way: $1196
Can someone point me to something from the IRS discussing how the poker income must be reported in my situation.
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You may not have done this right. With the schedule C you will also get to take the standard deduction of ~$5,000. If you take the schedule A route, you will eat up the standard deduction.
Out of curiosity, what did you use to figure out your taxes?
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