[Small Fry]

Your making 50k+ a year and that is hobby income to you? ....lol

If you don't want to file a Schedule C as a self employed person, which you might be able to avoid if you're a student or actually have another full time job, then you'll just report your gambling income like everyone else. Winnings go right on the front of the 1040 and losses will go on Schedule A. I would use PokerTracker and divide your wins and losses by session. Pokertracker should be all the records you need.

In my opinion, no matter how you file if you play on a "regular and consistent" basis or consider yourself "in the trade or business" then I would still consider it self employment income subject to self employment tax. (If you're playing several thousand hands online a month I'd have to say your in the trade or business. Just my personal opinion) Other than that you just pay regular taxes just like any other job / income. Check out IRS.gov for a tax table based on your filing status/ income level.

Self employment tax is you paying both the employers and your share of Social security and medicare. It's basically 15% (of the amount of your net winnings, capped at $97,500 of income) but you do get half of that back as a deduction.

If your clearing anywhere near 4k a month I would highly advise you seek competent tax advice. It will be well worth the few hundred bucks you should have to pay.