Another Tax Thread...But I spent most of my winnings

[Stereolab]

Income tax time is coming soon. Well I've made over 12k this year and I've spent most all of it on college and a trip to Europe. Now if i have to pay .30% in taxes I'm going to need $4k by April 15. This isn't a problem but lets say hypothetically I can't come up with the money by April 15. What can I do besides pray that I won't be auditted? Can I pay this years income taxes next year?

Also, are college(ie tuition, books, living) expenses tax deductible? I'm still filed as dependant to my parents so does this mean my parents are resposnsible for reporting my taxes? Thanks.

[TStoneMBD]

i think you already know the answer but are looking for someone to tell you what you want to hear.

[dogmeat]

Don't worry, with just $12k in income, you won't owe too much. However, the problem with being a winning poker player is that you are in your own business or profession - and will have to pay self-employement taxes. These amount to about 15% of whatever your final (after deductions) income is. Or, you can claim all of your winnings on line 21 (other income) and write in gambling winnings.

If you do this you get no deductions, but can avoid the self-employement taxes. I've used this in the past, but these days it might not fly -

You can always file for an automatic extension - there will be a minor penalty and interest for this, but it is going to be a very small amount. you might consider buying turbotax and doing your taxes this way. It can guide your through claiming a business (for your poker) with expenses, and can also help with the automatic extension.

Dogmeat [img]/images/graemlins/spade.gif[/img]

[WhiteWolf]

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You can always file for an automatic extension - there will be a minor penalty and interest for this, but it is going to be a very small amount.


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Good advice, and a far better option than trying to hide income.

[canis582]

Pretend like you nevar won.

[Stereolab]

?

I might know how to diversify my bonds, but when it comes to taxes I'm clueless.

[Chadt74]

There are so many things wrong with your opening statement..

1 - You can't just throw down your winnings as income and you probably do not want to file as a professional
2 - If you do just put down $12K as income and that is your only income in 2005 you'd owe like $1,500. I have no idea where you get 30% from? Based on your last comment I'm assuming you did not break out your sessions and increase your income.
3 - With deductions like the standard one ($3,200) you can move your gross down and only owe a little less than $1K

Sorry man you owe a few bucks to the tax man but the good news is that it isn't $4K.

[TheHammer24]

If I made more money playing poker than I did at my job at a restaurant, can I file as a professional? What are the advantages disadvantages. I have turbotax. Should I just use that?

[Stereolab]

Like I said, I'm clueless when it comes to taxes. When I said income I meant gambling winnings. I didn't realize the wrong word usage made such a difference.

Thanks for the insight though. If the taxes will be as low as you said it will be no problem.

[Chadt74]

Hammer, filing as a pro has a ton of issues, I'd suggest searching the boards for thread from those who do it. Lab, if you did not keep good records of your sessions and want to pay your taxes, put the $12K as other income on line 21 of your 1040 and you might be surprised how little you owe.