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#1
04-12-2007, 06:18 PM
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Better to just claim \"other income\", not \"gambling income\", on 1040?
I'm wondering (since claiming gambling income raises your audit risk from 1% to 2%), is it better to just claim it as "other income" on the 1040?
I only have a small amount of gambling losses which would go on Sched A, and i'm willing to forego those offsets. Thanks! 
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#2
04-12-2007, 06:32 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
Line 21 Other Income has a requirement to fill in the type of income or attach a statement.
If you leave it blank, I would assume that would raise your audit risk even more. In fact, they may even have a method of requesting the type of income if you don't list it.
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#3
04-12-2007, 07:21 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
If you're really afraid of a 1% increase of an audit (where the eff did you get that number, BTW?), I would suggest you stop cheating on your taxes so that an audit wouldn't be a problem.
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#4
04-17-2007, 11:00 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
[ QUOTE ]
If you're really afraid of a 1% increase of an audit (where the eff did you get that number, BTW?), I would suggest you stop cheating on your taxes so that an audit wouldn't be a problem. [/ QUOTE ]Audits suck for non-cheaters too. How many hours do you spend with Jehovah's Witnesses when then come to your door? Why would anyone want to spend time with a charming IRS bureaucrat if they can avoid it?
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#6
04-18-2007, 02:52 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
[ QUOTE ]
If you're really afraid of a 1% increase of an audit (where the eff did you get that number, BTW?), I would suggest you stop cheating on your taxes so that an audit wouldn't be a problem. [/ QUOTE ] umm 1% to 2% is a 100% increase it is a question worth asking "how can I decrease my chance of audit". Good job not using math a 5th grader would know to dismiss a valid and worthwhile question.
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#7
04-18-2007, 04:45 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
How about this idea? Put something like "statistical analysis consulting income"...which is not a lie, and does not raise audit risk?
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#8
04-18-2007, 05:04 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
[ QUOTE ]
How about this idea? Put something like "statistical analysis consulting income"...which is not a lie, and does not raise audit risk? [/ QUOTE ] A consultant would be a business and required to fill out sched C. IIRC, the specific types of income that are supposed to be put on line 21 are outlined in the instructions. I'm sure there are exceptions, but if what you put isn't at least in the spirit of the items they list it probably belongs somewhere else. I don't think showing gambling income is going to increase your audit risk as much as what you might do to make it appear to be something else might. Also if you had any winnings where you received a form W2-G and you don't categorize it as "gambling winnnings" or similiar you're begging for an audit.
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#9
04-18-2007, 05:30 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
No W2G's, but you raise a good "workaround"...just claim it as Schedule C income.....hmmmmmm
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#10
04-18-2007, 06:50 PM
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Re: Better to just claim \"other income\", not \"gambling income\", on 104
[ QUOTE ]
No W2G's, but you raise a good "workaround"...just claim it as Schedule C income.....hmmmmmm [/ QUOTE ] Using schedule C is "filing as a professional." If you've got other income that may or may not be a good idea. It has the added disadvantage of having to pay self employment tax. On the positive side offsetting wins with your losses plus any other valid expenses is a no brainer.
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