Using PokerTracker for Taxes...

[PShabi]

I found a perfect example of how I'm getting fucked this year. Enjoy!!!



A post from elsewhere:

Let's assume a few things:

1. I am not a professional gambler.
2. I'm married.
3. I won $20000 in 2004.
4. I lost $15000 in 2004.

If I don't really have any other deductions, does this mean I get screwed big time?

Let's assume I have $1000 of deductions so I would just opt for the standard deduction. Now, because of poker, I lose that $9500 deduction, because I have to say that I lost $15000 gambling, esentially robbing me of $9500 in deductions.

Is this correct thinking? I'm just trying to get a sense of how screwed I'm getting.




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Let's just add one more assumption if no one minds:
ASSUMING NO POKER, junkmail's income was $25,000.

So, WITHOUT POKER, his AGI would be $25,000. His exemptions (assuming 1 for himself and 1 for his wife) would be $3,100 each or $6200 total. That brings him down to $18,800 taxable income. Then he takes standard deduction of $9,500 bringing his taxable income down to $9,300

WITH POKER, his AGI becomes $25,000 + $20,000 = $40,000.
He still gets the $6,200 exemption bringing his taxable to $33,800. But now he can no longer use the standard deduction of $9,500 unless he doesn't want to declare his gambling losses, so he files a Schedule A showing $15,000 as gambling losses.

This reduces his taxable income to $18,800. This means he is paying taxes on $9,500 more income ($18,800 - $9,300) even though he only netted $4,000 from his poker.

Is this correct??

Thanx so much for pointing this out and for your help!


**** What I now gather is this. The scenario where you get fucked is:

1) Non-professional
2) No itemized deductions other than poker losses.(no home ownership, etc)
3) Your net was less than $9500.

Best thing is, that's me!

It seems like this person would be the only one getting screwed and everyone else is just paying taxes? Am I right here?