Forms needed for pro filing?

[MikeyPatriot]

I'm filing as a pro for the first time and wanted to make sure I have all the forms I need. I have the basic 1040, schedules A and C, and my state form (IN-40). I need to pick up schedule SE, but the library is currently out (though I'm going to stop by the help desk on my way out). I picked up a copy of the 1040-ES so I can start paying quarterly as well.

Also, would it be easier to pick up a commercial program? If so, what is recommended for a pro player?

The reason I'm not going to a CPA is because outside of filing as a pro, there isn't much else to do. I don't have many other deductions (I don't have any receipts for any deductions I might have, lessons learned).

[I_C_ALL]

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The reason I'm not going to a CPA is because outside of filing as a pro, there isn't much else to do. I don't have many other deductions (I don't have any receipts for any deductions I might have, lessons learned).

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Those are the best reasons to go to a CPA. 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. If you're filing as a pro, you'll probably want to set up a corporation. The benefits are two fold

First, you'll present yourself as a "professional" in that you are treating this as a business with business expenses(travel, meals, education, fees, etc...)

Second, you reduce your self employment taxes as you only pay self employment tax(15.3%) on the "salary" you pay yourself, which will probably be less than to substantially less than the corporations profits depending on numerous factors including the aggressiveness of the CPA.

Find a professional who deals with the IRS, not a glorified bookkeeper who will put the values in the right box. You can do that. Make sure they have tons of experience. I think I'm my CPA's first gambler, but in my opinion, he makes up for that with his experience.(by the way, the fact my CPA doesn't specialize in gambling should encourage you to seek professional advice before relying on the above.)

If you're filing professionally, you should be doing somewhat well. Spend the money on a consultation. If its a family or friend referral, the consultation may even be free. Just remember, you get what you pay for.

Oh, and to answer your question, you have all the forms you need. We used Turbo Tax for the last few years with great results other than paying 18k in extra tax.(I have situations you probably don't)(being serious here, not sarcastic. I liked Turbo Tax over Tax Cut) I also thought my income/expense was easy enough. I was wrong.

[Krazy8s]

Agree with the CPA sug. As for the forms....did you say you went to the library? Go to IRS.gov and DL any form u need or better yet get turbotax and that's all u need.

[pokerstudAA]

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."

[bcblack]

hey pokerstud as far as you know is the IRS forcing people to file as pros if poker is the majority of their income? I have read that they used to not like pro gamblers but lately they are changing their position and forcing us to file pro. What do you think are the chances of getting away with not filing pro, when for all practical purposes you are one?

Thx for posting in this thread.