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also u can file as a hobby and not have to pay that extra 13 percent whatever self-employment tax. Only way u should file as a pro if u have lots of big deductions like flights/hotels/etc for big live events
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Yeah, I just talked to my CPA again and she said I could go that route (hobby). She said it's and "aggressive" line to take because I'm making 3-4x's any W2s I have. She basically said if I got audited they might make me pay back self employment tax. So, I'm going for it. I'm just gonna pay 17% to the feds and 8% to California. She said it was "up to me" if I didn't want to pay the SE tax. Fk the IRS and our government. I'm in a bad mood.
Thnx luckybacon for the advice.
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i'm telling you now, but feign ignornce if you get caught.
filing as a professional gambler you can report your net gambling income, and be taxed on that.
otherwise, you have to report your winnings (sum of wining sessions) as income, and deduct a portion of your losses (sum of losing sessions). unfortunately, this is often something like 200k winnings, 180k losses, which turns out very, very ugly tax wise (some people owe more than they make, etc).
i just say, "dad i won $XXXXX this year" and say nothing to "but how much did you lose?". whatever, if they catch me, i didnt know better.
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