another thought on taxes for micros with other main income

[train.]

Mine may have been an exception, but I figured mine as just netted (2200) and then as income (5500) minus deductions (3300) and the net extra tax was exactly the same.

[bennyhana]

Well I guess I don't keep near as good of records as I should. How are you guys getting your bottom line, if you don't mind me asking? Poker tracker? Are you including bonuses and RB in these numbers?

I figure out my net the long way I guess. I just add up all the wire transfers back to my poker checking account from Neteller, and the total is what I figure I have won(or earned as I like to say around the house [img]/images/graemlins/tongue.gif[/img]).

[Buzz-cp]

Technically you have to put your winning sessions only as winnings, and losing sessions under deductions. Bonuses and RB are income as well. You can easily get all poker stuff from PT with the export function. I keep a spreadsheet of bonuses+RB+livegames. All of this is what is legally requied, unless you file as a professional gambler.

[train.]

I've got a notebook. I draw two lines vertically seperating each page into 3 columns. I write down the date, what game and limit I'm playing and what I buy in with. (if i multi table i only write the date and limit once but a seperate entry for each buyin.) When I finish playing I write down what I cashed out for, subtract the difference and write down a - or + number for win or loss. I total all wins and losses at the end of the day for session total. I fill up the first column like this and then the 2nd and then the 3rd. [img]/images/graemlins/grin.gif[/img]

I keep a running total at the top of the page, + numbers on the left, - numbers on the right, net for the year in the middle. When I fill up a page I total all the + sessions and add on the left, all the - sessions on the right, add in rb and bonus to get the new net and transfer to the next page.

I'm sure it would be just as easy to do it in an excel spreadsheet but it's really not that big of a hassle and from what I've read the IRS likes handwritten logs because they're not as easily manipulated dishonestly.

[bozlax]

[ QUOTE ]
from what I've read the IRS likes handwritten logs because they're not as easily manipulated dishonestly.

[/ QUOTE ]

My sarcasm meter must be busted because it didn't even twitch at this. Either that, or this is the stupidest thing I've ever read.

[train.]

[ QUOTE ]
[ QUOTE ]
from what I've read the IRS likes handwritten logs because they're not as easily manipulated dishonestly.

[/ QUOTE ]

My sarcasm meter must be busted because it didn't even twitch at this. Either that, or this is the stupidest thing I've ever read.

[/ QUOTE ]

Sir, I didn't say that is was correct or not stupid, only that it is what I have read (in numerous threads in the zoo.) No sarsasm intended.

[bennyhana]

wow...uh...wow. Do you do that every time you play? Is everybody doing this? I've just been playing poker, not really worrying about keeping records. I guess I better start. [img]/images/graemlins/shocked.gif[/img]

[Eeegah]

Bottom line: If you play poker and the IRS wants to screw with you, they will. The law is sufficiently gray that they could basically do whatever they want.

[train.]

[ QUOTE ]
wow...uh...wow. Do you do that every time you play? Is everybody doing this? I've just been playing poker, not really worrying about keeping records. I guess I better start. [img]/images/graemlins/shocked.gif[/img]

[/ QUOTE ]

I started keeping records almost as soon as I began playing because Ken Warren said that's what all winning players do. [img]/images/graemlins/shocked.gif[/img]

[Cosimo]

[ QUOTE ]
[income - taxes = net take-home]
+3K/-1K Standard Ded taken
62000 - (63000-8000).33 = 43850

+3K/-1K No Standard Ded taken
62000 - (63000-1000)(.33) = 41540

+10K/-8K Standard Ded Taken
62000 - (72000-8000)(.33) = 40880

+10K/-8K No Standard Ded Taken
62000 - (72000-8000)(.33) = 40880

[/ QUOTE ]

Bleh, remove the common stuff. Every line starts with "62000 -" and has "(.33)", so let's just remove that.

Say you have no other deductions -- no mortgage, medical expenses, business expenses, kids, moving expenses, etc. Then your options are:

a) 3000 in wins and 1000 in losses:
Net Taxable Income (NTI) = (60,000 base + 3000) - 8000 std. deduction = 55,000

b) 10,000 in wins and 8,000 in losses:
NTI = (60,000 base + 10000) - 8000 deduction = 62,000

Note that in case b, it doesn't matter whether you itemize or take the standard deduction, cuz it's the same $8000.

You should always take the biggest deduction you can. Itemizing $1000 in losses is obviously a bad idea, if the standard deduction is 8000. Just take the standard deduction.