paying taxes

I think I will be classified as a pro due to how much I have made even though I am still a student/only 19/etc.

i that if I earned 400,000$ by the end of '06 I would owe approx 175,000$ in taxes (fed, state, SS, medicade) which seems redic!

he did tell me i could put some $ in a SEP IRA which would remain untouchable. btw, what kind of interest do you earn on that? i'm assuming it's better than what the bank normally pays for accounts/CDs/etc.

[TheWorstPlayer]

you invest money in an IRA in normal financial instruments. Just google this stuff or check out the finance and investing forum on here.

[Leptyne]

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Grim,

If you didnt pay taxes last year, you dont have to pay estimated payments this year.

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Does this only apply to taxes payed on gambling winnings last year? i.e., do i have to pay estimated payments this year up to the amount I paid in taxes from my 9-5 job?

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If you have W-2 income you are not required to file quarterly. Your income is taxed as you receive it. Gambling income would be listed on your 1040.

[Leptyne]

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you guys pay quarterly tax estimates?

i just talked to a tax attorney today who says I will need to pay every 1/4 and that my wins/losses will offset previous payments so in the end of the year I will get a refund/owe more which seems kind of rediculous. isnt it just easier to pay it all in the end of the year? or will I get penalties for this?

also, how is the IRS supposed to know if I my "income/winnings" is still in the poker site?

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IRS Gambling Income

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Grim,

If you didnt pay taxes last year, you dont have to pay estimated payments this year.

[/ QUOTE ]

Does this only apply to taxes payed on gambling winnings last year? i.e., do i have to pay estimated payments this year up to the amount I paid in taxes from my 9-5 job?

[/ QUOTE ]

If you have W-2 income you are not required to file quarterly. Your income is taxed as you receive it. Gambling income would be listed on your 1040.

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Understood, but this wasn't my question. My question is this:

Do you have to report your gambling income quarterly this year even if you only payed W-2 income taxes in the previous year?

[BLdSWtTRs]

Lol. Life sucks.

Lol. Tax sucks,

[Leptyne]

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[ QUOTE ]
Grim,

If you didnt pay taxes last year, you dont have to pay estimated payments this year.

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Does this only apply to taxes payed on gambling winnings last year? i.e., do i have to pay estimated payments this year up to the amount I paid in taxes from my 9-5 job?

[/ QUOTE ]

If you have W-2 income you are not required to file quarterly. Your income is taxed as you receive it. Gambling income would be listed on your 1040.

[/ QUOTE ]

Understood, but this wasn't my question. My question is this:

Do you have to report your gambling income quarterly this year even if you only payed W-2 income taxes in the previous year?

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General Rule
You must pay estimated tax for 2006 if both of the following apply.

You expect to owe at least $1,000 in tax for 2006, after subtracting your withholding and credits.

You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your 2006 tax return, or

100% of the tax shown on your 2005 tax return. Your 2005 tax return must cover all 12 months.

Sounds to me like you need a good tax professional familiar with gambling.

[IRV]

Do something good for your community and open up some churches.

i havent been to church in over 5 years