[Jurollo]

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1. Definitely file as a pro and max out your SEP IRA (or Individual 401k depending on what is best for you). This is $45k that goes in before taxes and grows tax free. You can withdraw at 59 1/2 and pay normal income tax on the money.


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Why "file as a pro" and pay the extra self employment taxes? Even once he hits the max on social security he still has to pay both halves of medicare on the whole thing. I would not be so sure that the retirement benefit outweighs the extra taxes.

OP - Don't forget that any buyins for the rest of the year are tax deductible. That means the WSOP ME will only cost you approximately $6,500 after taxes. (this is an estimate without knowing the exact tax rate for MA and your tax bracket).

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That was my initial thought about the SEP IRA, while it is tax deferred I am still going to get slammed on the self employment if I file as a pro, rather then just filing my consulting funds as my primary income with lots of gambling winnings.