So are poker players/bettors screwed for Roth IRAs?

[domer2]

Since Roth IRAs are based upon MAGI instead of taxable income, your losses/deductions cannot be utilized for a Roth if I am understanding it correctly.

For instance, if you have income of 200k but losses of 140k, you don't qualify. Even though you earned well, well under the limit of $99k for individuals.

Do I have that right?

[Badger]

Poker winnings aren't earned income, so even if you did have winnings below the limit you still couldn't use it to contribute to a Roth IRA.

I'm not positive that MAGI discludes poker losses, so hopefully someone else can clarify what happens in the situation that someone earns $90k, then has gambling winnings of $25k and losses of $20k.

[spider]

Yeah, if you file as a non-pro, the gross winnings aspect can cause you to exceed the AGI phz-out even though your net earnings are under the threshhold. Just another aspect of how poker taxation in US sucks.

If you file as a pro, you only get phased out if you net is too high.

[spider]

Badger: as non-pro, losses are an itemized deduction, and they can only reduce taxable income, never AGI or MAGI.

(Well, I shouldn't say strictly never since MAGI can mean a million different things, but AFAIK never.)