Ever appropriate to ask SSNL how they handle poker taxes?

[brandysbich]

If this isnt allowed please delete this post and accept my apologies.

I know theres a lot of us here who make decent money at poker, whether it be on the side of a job or college or whether it be your only source of income. I think a large majority of SSNL is in the 4k-8k range/month (i know theres a few that make a lot more) but it just feels like a bit of an overkill to go and hire a poker tax specialist for hundreds an hour to work out our moderate winnings.

Are most of you guys filing as a pro? (I feel a bit awkward about going to a specialist and calling myself a pro if i'm only making 4k/5k a month)

Are you guys happy filing it as a hobby and paying slightly more taxes with less legwork to do come taxes time?

Does anybody know how much of a chunk taxes takes out of our profits? Even doing a bit of research its hard to put a % on it cos it varies on so many things

Any advice from guys out there who have gone through this a year or 2 already on what kind of records we need to keep besides PT to make taxes time easier.

I know its nowhere near taxes time but it never hurts to be prepared and its something we all going to have to go through come April no matter how we file it.

Any feedback would be helpful (yes we know you guys in the UK dont pay taxes)

Thanks

[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.

[SpecT]

lol... taxes

yay for australia

[MyTurn2Raise]

find a good local CPA for taxes

I file as a pro
I end up paying about 20% of my total income after deductions for 401k

[brandysbich]

Thanks for the replies Small Fry and MT2R, very informative...I guess 4k a month isnt peanuts after all.

Could you elaborate a bit more on this 401k (i'm a total newb to this)

I take it filing as a pro is the same as claiming to be self employed. Could you give me a few examples of the other things you can write off by filing this way?

Thanks

[FoldEqu1ty]

[ QUOTE ]
lol... taxes

yay for australia

[/ QUOTE ]

Yeah hahaha

Although I am a little worried. Let's say I don't work ANY job for the next few years, and rake in a very solid income through poker - can I eventually be considered a professional gambler? I've heard that it's possible to be classified as one in this country and thus pay taxes on all winnings, but that it's very very difficult. Specifically someone told me you need to be doing it full-time for 3 years minimum to be eligible for this classification.

Does anyone have an idea of how tax applies to poker in Australia?

[InsideEdge]

lol pokeristaxableincomeaments