Re: Poker, the IRS, Law, and Self Emp Tax
I've called the IRS and asked them a couple times, and none of them really know. But they did say that if it was ruled that i filed incorrectly i would potentially owe SE tax for the previous 3 years, with interest and possible penalties.
Since I am definitely a pro and had a big jump in poker income 2 years ago I decided to just start paying it. I still think it was the right decision but I really hate that tax. It kills me every quarter.
Up until then I only made like 35-45k a year from poker and like 20k working. I filed it as other income and never had a problem for about 3 years i think.
I started making 75k poker and 10k working and that seemed pretty obvious and my accountant agreed.
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