Re: Forms needed for pro filing?
I am a corporate tax attorney and have been prepping individual returns for more than 5 years now. I have done multiple returns for professional gamblers. PM me if you have any specific questions.
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Listen, if you file as a pro, you're putting your wins and losses on a schedule C. I'm told 1040's with schedule C items are one of the most highly audited returns out there.
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By filing a schedule C you are putting your net wins and losses i.e. total profit. Filing a traditional 1040 you claim gambling winnings and claim losses seperately as a deduction. Almost 1/2 the returns I do have scedule C's and I doubt that makes them more likely to get audited. Really only about 2% of returns wind up being audited.
The biggest problems with filing Schedule C - professional is that you are subjected to an extra Self-employment tax about 15%. You will however get to net your wins and losses - get to deduct for things like internet access/2+2 books/PXF or cardrunners fees/Pokertracker/Bluff magazine subscription/trips to vegas/etc.
Depending on your gambling winnings and total expenses claiming your income on your 1040 make be cheaper on your overall tax bill. Filing as a "pro" seems more glamourous but might not be your best option. I would chose to file whichever way makes my tax bill lowest.
The Self-employment tax can be reduced next year by setting up a Chapter S. corportation for your small "business."
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