I am using Turbo Tax and wish to file gambling winnings
on Schedule C. I am not quite sure where this should go
within Turbo Tax.
The chat people are clueless and keep insisting I put them
in personal income.
Does anyone know to enter this information via Turbo Tax?
Please respond privately.
Thanks
Jim
what7do7you7want wrote:
<<I am using Turbo Tax and wish to file gambling winnings
on Schedule C. I am not quite sure where this should go
within Turbo Tax.>>
Is this a trick question? It goes on Schedule C. If you're using the
interview there should be a topic about profit/loss from a business (sole
proprietorship). Or you can just open up the form and fill it out.
The IRS has been disallowing the use of Schedule C for reporting gambling
winnings unless you are a full-time winning gambler without another primary
source of income. I trust you've investigated this and have come to an
educated decision.
Cogno
It goes on line 1 under income. I know someone who filed Sched C, but was not able to convince the IRS even after an appeal. His documentation was outstanding, but the IRS would not accept it.
Good luck!
Chris
--- In vpFREE@yahoogroups.com, "what7do7you7want" <what7do7you7want@...> wrote:
I am using Turbo Tax and wish to file gambling winnings
on Schedule C. I am not quite sure where this should go
within Turbo Tax.The chat people are clueless and keep insisting I put them
in personal income.Does anyone know to enter this information via Turbo Tax?
Please respond privately.
Thanks
Jim
If you are using Turbotax there should be a section which will ask about "other income". (I haven't had a W2G in a couple years). Just input the W2G info there and the program will put it where it belongs. Also, it should then give the opportunity to input off-setting losses. I hope I have that "problem" next year.
--- In vpFREE@yahoogroups.com, "kcace1024" <cy4873@...> wrote:
It goes on line 1 under income. I know someone who filed Sched C, but was not able to convince the IRS even after an appeal. His documentation was outstanding, but the IRS would not accept it.
Good luck!
Chris
--- In vpFREE@yahoogroups.com, "what7do7you7want" <what7do7you7want@> wrote:
>
>
> I am using Turbo Tax and wish to file gambling winnings
> on Schedule C. I am not quite sure where this should go
> within Turbo Tax.
>
> The chat people are clueless and keep insisting I put them
> in personal income.
>
> Does anyone know to enter this information via Turbo Tax?
>
> Please respond privately.
>
> Thanks
>
> Jim
>
Yes, Redtoppicker has it right. I also use Turbo Tax, a great tax program, to do our taxes, and your W2-G gambling winnings, is reported in Turbo Tax in the other income section, and ends up on with any other taxable income you have, and, if you use the Turbo Tax option of letting Turbo Tax guide you...meaning ask all pertinent questions...like, do you have any gambling losses to offset gambling winnings?...you won't forget to take advantage of the deductions you are entitled to. Gambling losses end up on line 29 gambling losses, which is combined with all of your other itemized deductions. I keep a gambling log, so it the IRS audits me, I will be able to support my losses, in detail, including when, where, what game played, time of day, and amount of loss. I keep a miniture recorder with me to record this info after I leave each game, and then type it in an Excel spreadsheet when I get home. Hope this helps. Don H
----- Original Message -----
From: redtoppicker
To: vpFREE@yahoogroups.com
Sent: Saturday, September 11, 2010 11:50 AM
Subject: [vpFREE] Re: Turbo Tax
If you are using Turbotax there should be a section which will ask about "other income". (I haven't had a W2G in a couple years). Just input the W2G info there and the program will put it where it belongs. Also, it should then give the opportunity to input off-setting losses. I hope I have that "problem" next year.
--- In vpFREE@yahoogroups.com, "kcace1024" <cy4873@...> wrote:
>
> It goes on line 1 under income. I know someone who filed Sched C, but was not able to convince the IRS even after an appeal. His documentation was outstanding, but the IRS would not accept it.
>
> Good luck!
>
> Chris
>
> --- In vpFREE@yahoogroups.com, "what7do7you7want" <what7do7you7want@> wrote:
> >
> >
> > I am using Turbo Tax and wish to file gambling winnings
> > on Schedule C. I am not quite sure where this should go
> > within Turbo Tax.
> >
> > The chat people are clueless and keep insisting I put them
> > in personal income.
> >
> > Does anyone know to enter this information via Turbo Tax?
> >
> > Please respond privately.
> >
> > Thanks
> >
> > Jim
> >
>
[Non-text portions of this message have been removed]
<<I also use Turbo Tax, a great tax program, to do our taxes, and your W2-G gambling winnings, is reported in Turbo Tax in the other income section, and ends up on with any other taxable income you have,>>
This information is correct for recreational gamblers. However, I think the person asking about this wants to file as a professional on Schedule C. I don't use Turbo Tax so I can't give any specific advice here. I would think the software would prompt you to put in your business income, which would be your total session wins (see notes below) for the year, and your expenses, which would include your gambling losses plus other business expenses. But I don't really know if Turbo Tax would automatically ask you the right questions - maybe not for a "gambling business." You might have to do this "manually." (I've never used a tax software program so I don't know if this is possible. Marissa does our taxes.)
(Note: To avoid an audit many professional gamblers use a figure that is your W-2G total or larger for your income and then use a loss total so your actual profit corresponds with your actual session loss total.)
________________
Jean $�ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
<<The IRS has been disallowing the use of Schedule C for reporting gambling
winnings unless you are a full-time winning gambler without another primary
source of income. I trust you've investigated this and have come to an
educated decision.>>
Yes, this has been happening to some, but others have "persuaded" the IRS to see it their way. This is discussed at length in my book "Tax Help for Gamblers." There are other factors that can be taken into consideration that can help your case.
________________
Jean $�ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
what7do7you7want wrote:
<<I am using Turbo Tax and wish to file gambling winnings
on Schedule C. I am not quite sure where this should go
within Turbo Tax.>>Is this a trick question? It goes on Schedule C. If you're using the
interview there should be a topic about profit/loss from a business (sole
proprietorship). Or you can just open up the form and fill it out.
I had the same "trick question" reaction.
You do have to make use of the "override" capability with Turbo Tax, if using it to file a Sch C for gambling. Turbo Tax will want to put your W-2G's on the "other income" line. If you want, you can add a note on that "other income" line stating that W-2G income is included with SchC.
The IRS has been disallowing the use of Schedule C for reporting gambling
winnings unless you are a full-time winning gambler without another primary
source of income. I trust you've investigated this and have come to an
educated decision.
I don't think this is uniformly the case. They may ask you to support your claim, but you are not automatically disqualified if you have another job. I know of more than one pro who has what would be considered a full-time job, but successfully uses Sch. C.
Also, keep in mind that it's not necessarily advantageous to file Sch. C. The pesky self-employment tax takes something like an additional 14% of your profit (after figuring in the deduction for SE tax). (If your other job puts you over the Soc Security max, the self-employment tax drops to the approx 2.5% Medicare component.) For people with low gambling expenses (but who itemize), it's often better to file as a recreational gambler.
--Dunbar
--- In vpFREE@yahoogroups.com, "Cogno Scienti" <cognoscienti@...> wrote:
"...I keep a gambling log, so if the IRS audits me, I will be able to support my losses, in detail, including when, where, what game played, time of day, and amount of loss. I keep a miniture recorder with me to record this info after I leave each game, and then type it in an Excel spreadsheet when I get home...."
Unless the IRS chooses to completely ignore your gambling log!
At least some IRS auditors are now demanding independent verification of your gambling losses - meaning specifically that they want to see win/loss statements from the casinos you visit. You can send them copies of all the detailed and carefully recorded gambling logs you want, and they'll send a reply that they simply don't accept your log as proof of your losses.
For video poker players (who have near 100% carded play), the task of collecting win/loss statements from all over the place is mostly a time consuming PITA. Some casinos make it easier than others. But for gamblers who generally have unrecorded play (think live cash game poker players) ...
Of course this stance by the IRS auditors conflicts with their very own instructions for documenting gambling losses, but so what? Tell them that next time they send you one of those pink letters, and let me know how that argument works out for you.
EE
--- In vpFREE@yahoogroups.com, "Don T Hughes Jr" <donthughesjr@...> wrote:
A better idea would be to work with an EA or CPA to do this return, since
you will definitely get audited and they can begin getting you ready for
the audit. Doing this yourself would be foolish.
At 11:48 PM 9/12/2010 +0000, you wrote:
--- In <mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com, "Cogno
Scienti" <cognoscienti@...> wrote:
>
> what7do7you7want wrote:
>
> <<I am using Turbo Tax and wish to file gambling winnings
> on Schedule C. I am not quite sure where this should go
> within Turbo Tax.>>
>
> Is this a trick question? It goes on Schedule C. If you're using the
> interview there should be a topic about profit/loss from a business (sole
> proprietorship). Or you can just open up the form and fill it out.I had the same "trick question" reaction.
You do have to make use of the "override" capability with Turbo Tax, if
using it to file a Sch C for gambling. Turbo Tax will want to put your
W-2G's on the "other income" line. If you want, you can add a note on that
"other income" line stating that W-2G income is included with SchC.>
> The IRS has been disallowing the use of Schedule C for reporting gambling
> winnings unless you are a full-time winning gambler without another primary
> source of income. I trust you've investigated this and have come to an
> educated decision.I don't think this is uniformly the case. They may ask you to support your
claim, but you are not automatically disqualified if you have another job.
I know of more than one pro who has what would be considered a full-time
job, but successfully uses Sch. C.Also, keep in mind that it's not necessarily advantageous to file Sch. C.
The pesky self-employment tax takes something like an additional 14% of
your profit (after figuring in the deduction for SE tax). (If your other
job puts you over the Soc Security max, the self-employment tax drops to
the approx 2.5% Medicare component.) For people with low gambling expenses
(but who itemize), it's often better to file as a recreational gambler.--Dunbar
[Non-text portions of this message have been removed]
"you will definitely get audited". Really? What's the basis for that and other blanket statements in this thread?
I've been filing a Sch C for gambling for at least 17 years and I've never been audited. I've always done my own tax return, too. One year I had over $200K in W-2G's and less than $20K in net profit (yeah, not a great year!), but still no audit.
Maybe I should complain about being neglected. If everyone else is being audited, why can't I get audited?
--Dunbar
--- In vpFREE@yahoogroups.com, Ernie Mayhorn <e_mayhorn@...> wrote:
A better idea would be to work with an EA or CPA to do this return, since
you will definitely get audited and they can begin getting you ready for
the audit. Doing this yourself would be foolish.At 11:48 PM 9/12/2010 +0000, you wrote:
>
>
>
>
>--- In <mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com, "Cogno
>Scienti" <cognoscienti@> wrote:
> >
> > what7do7you7want wrote:
> >
> > <<I am using Turbo Tax and wish to file gambling winnings
> > on Schedule C. I am not quite sure where this should go
> > within Turbo Tax.>>
> >
> > Is this a trick question? It goes on Schedule C. If you're using the
> > interview there should be a topic about profit/loss from a business (sole
> > proprietorship). Or you can just open up the form and fill it out.
>
>I had the same "trick question" reaction.
>
>You do have to make use of the "override" capability with Turbo Tax, if
>using it to file a Sch C for gambling. Turbo Tax will want to put your
>W-2G's on the "other income" line. If you want, you can add a note on that
>"other income" line stating that W-2G income is included with SchC.
>
> >
> > The IRS has been disallowing the use of Schedule C for reporting gambling
> > winnings unless you are a full-time winning gambler without another primary
> > source of income. I trust you've investigated this and have come to an
> > educated decision.
>
>I don't think this is uniformly the case. They may ask you to support your
>claim, but you are not automatically disqualified if you have another job.
>I know of more than one pro who has what would be considered a full-time
>job, but successfully uses Sch. C.
>
>Also, keep in mind that it's not necessarily advantageous to file Sch. C.
>The pesky self-employment tax takes something like an additional 14% of
>your profit (after figuring in the deduction for SE tax). (If your other
>job puts you over the Soc Security max, the self-employment tax drops to
>the approx 2.5% Medicare component.) For people with low gambling expenses
>(but who itemize), it's often better to file as a recreational gambler.
>
>--Dunbar
>
>[Non-text portions of this message have been removed]
Ask Geithner, Turbo Tax Expert
________________________________
From: dunbar_dra <h_dunbar@hotmail.com>
To: vpFREE@yahoogroups.com
Sent: Mon, September 13, 2010 3:54:12 PM
Subject: [vpFREE] Re: Turbo Tax
"you will definitely get audited". Really? What's the basis for that and other
blanket statements in this thread?
I've been filing a Sch C for gambling for at least 17 years and I've never been
audited. I've always done my own tax return, too. One year I had over $200K
in W-2G's and less than $20K in net profit (yeah, not a great year!), but still
no audit.
Maybe I should complain about being neglected. If everyone else is being
audited, why can't I get audited?
--Dunbar
--- In vpFREE@yahoogroups.com, Ernie Mayhorn <e_mayhorn@...> wrote:
A better idea would be to work with an EA or CPA to do this return, since
you will definitely get audited and they can begin getting you ready for
the audit. Doing this yourself would be foolish.At 11:48 PM 9/12/2010 +0000, you wrote:
>
>
>
>
>--- In <mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com, "Cogno
>Scienti" <cognoscienti@> wrote:
> >
> > what7do7you7want wrote:
> >
> > <<I am using Turbo Tax and wish to file gambling winnings
> > on Schedule C. I am not quite sure where this should go
> > within Turbo Tax.>>
> >
> > Is this a trick question? It goes on Schedule C. If you're using the
> > interview there should be a topic about profit/loss from a business (sole
> > proprietorship). Or you can just open up the form and fill it out.
>
>I had the same "trick question" reaction.
>
>You do have to make use of the "override" capability with Turbo Tax, if
>using it to file a Sch C for gambling. Turbo Tax will want to put your
>W-2G's on the "other income" line. If you want, you can add a note on that
>"other income" line stating that W-2G income is included with SchC.
>
> >
> > The IRS has been disallowing the use of Schedule C for reporting gambling
> > winnings unless you are a full-time winning gambler without another
primary
> > source of income. I trust you've investigated this and have come to an
> > educated decision.
>
>I don't think this is uniformly the case. They may ask you to support your
>claim, but you are not automatically disqualified if you have another job.
>I know of more than one pro who has what would be considered a full-time
>job, but successfully uses Sch. C.
>
>Also, keep in mind that it's not necessarily advantageous to file Sch. C.
>The pesky self-employment tax takes something like an additional 14% of
>your profit (after figuring in the deduction for SE tax). (If your other
>job puts you over the Soc Security max, the self-employment tax drops to
>the approx 2.5% Medicare component.) For people with low gambling expenses
>(but who itemize), it's often better to file as a recreational gambler.
>
>--Dunbar
>
>[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]
The audit rates are in the high 90%'s for Sch C's as gamblers under many
circumstances. If this is your only main source of income then you're
probably OK-if it isn't, then you are the one at risk.
You can easily get audited, just ask-they will be happy to assist you.
At 07:54 PM 9/13/2010 +0000, you wrote:
"you will definitely get audited". Really? What's the basis for that and
other blanket statements in this thread?I've been filing a Sch C for gambling for at least 17 years and I've never
been audited. I've always done my own tax return, too. One year I had over
$200K in W-2G's and less than $20K in net profit (yeah, not a great
year!), but still no audit.Maybe I should complain about being neglected. If everyone else is being
audited, why can't I get audited?--Dunbar
--- In <mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com, Ernie
Mayhorn <e_mayhorn@...> wrote:
>
> A better idea would be to work with an EA or CPA to do this return, since
> you will definitely get audited and they can begin getting you ready for
> the audit. Doing this yourself would be foolish.
>
>
>
>
> At 11:48 PM 9/12/2010 +0000, you wrote:
> >
> >
> >
> >
> >--- In
<mailto:vpFREE%40yahoogroups.com><mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com,
"Cogno
> >Scienti" <cognoscienti@> wrote:
> > >
> > > what7do7you7want wrote:
> > >
> > > <<I am using Turbo Tax and wish to file gambling winnings
> > > on Schedule C. I am not quite sure where this should go
> > > within Turbo Tax.>>
> > >
> > > Is this a trick question? It goes on Schedule C. If you're using the
> > > interview there should be a topic about profit/loss from a business
(sole
> > > proprietorship). Or you can just open up the form and fill it out.
> >
> >I had the same "trick question" reaction.
> >
> >You do have to make use of the "override" capability with Turbo Tax, if
> >using it to file a Sch C for gambling. Turbo Tax will want to put your
> >W-2G's on the "other income" line. If you want, you can add a note on
that
> >"other income" line stating that W-2G income is included with SchC.
> >
> > >
> > > The IRS has been disallowing the use of Schedule C for reporting
gambling
> > > winnings unless you are a full-time winning gambler without another
primary
> > > source of income. I trust you've investigated this and have come to an
> > > educated decision.
> >
> >I don't think this is uniformly the case. They may ask you to support
your
> >claim, but you are not automatically disqualified if you have another
job.
> >I know of more than one pro who has what would be considered a full-time
> >job, but successfully uses Sch. C.
> >
> >Also, keep in mind that it's not necessarily advantageous to file Sch. C.
> >The pesky self-employment tax takes something like an additional 14% of
> >your profit (after figuring in the deduction for SE tax). (If your other
> >job puts you over the Soc Security max, the self-employment tax drops to
> >the approx 2.5% Medicare component.) For people with low gambling
expenses
> >(but who itemize), it's often better to file as a recreational gambler.
> >
> >--Dunbar
> >
> >
>
>
> [Non-text portions of this message have been removed]
>
[Non-text portions of this message have been removed]
Where do you get info on the audit rate for filing a Sch C for gambling? How do you know it's in the "high 90%'s" and what kind of "circumstances" will put you in the high 90's group?
I'm seriously interested in what you are basing these numbers on. Is this just your guess or do you have access to some strange database that isolates Sch C's for gambling under various circumstances?
--Dunbar
--- In vpFREE@yahoogroups.com, Ernie Mayhorn <e_mayhorn@...> wrote:
The audit rates are in the high 90%'s for Sch C's as gamblers under many
circumstances. If this is your only main source of income then you're
probably OK-if it isn't, then you are the one at risk.You can easily get audited, just ask-they will be happy to assist you.
At 07:54 PM 9/13/2010 +0000, you wrote:
>
>
>
>
>"you will definitely get audited". Really? What's the basis for that and
>other blanket statements in this thread?
>
>I've been filing a Sch C for gambling for at least 17 years and I've never
>been audited. I've always done my own tax return, too. One year I had over
>$200K in W-2G's and less than $20K in net profit (yeah, not a great
>year!), but still no audit.
>
>Maybe I should complain about being neglected. If everyone else is being
>audited, why can't I get audited?
>
>--Dunbar
>
>--- In <mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com, Ernie
>Mayhorn <e_mayhorn@> wrote:
> >
> > A better idea would be to work with an EA or CPA to do this return, since
> > you will definitely get audited and they can begin getting you ready for
> > the audit. Doing this yourself would be foolish.
> >
> >
> >
> >
> > At 11:48 PM 9/12/2010 +0000, you wrote:
> > >
> > >
> > >
> > >
> > >--- In
> <mailto:vpFREE%40yahoogroups.com><mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com,
> "Cogno
> > >Scienti" <cognoscienti@> wrote:
> > > >
> > > > what7do7you7want wrote:
> > > >
> > > > <<I am using Turbo Tax and wish to file gambling winnings
> > > > on Schedule C. I am not quite sure where this should go
> > > > within Turbo Tax.>>
> > > >
> > > > Is this a trick question? It goes on Schedule C. If you're using the
> > > > interview there should be a topic about profit/loss from a business
> (sole
> > > > proprietorship). Or you can just open up the form and fill it out.
> > >
> > >I had the same "trick question" reaction.
> > >
> > >You do have to make use of the "override" capability with Turbo Tax, if
> > >using it to file a Sch C for gambling. Turbo Tax will want to put your
> > >W-2G's on the "other income" line. If you want, you can add a note on
> that
> > >"other income" line stating that W-2G income is included with SchC.
> > >
> > > >
> > > > The IRS has been disallowing the use of Schedule C for reporting
> gambling
> > > > winnings unless you are a full-time winning gambler without another
> primary
> > > > source of income. I trust you've investigated this and have come to an
> > > > educated decision.
> > >
> > >I don't think this is uniformly the case. They may ask you to support
> your
> > >claim, but you are not automatically disqualified if you have another
> job.
> > >I know of more than one pro who has what would be considered a full-time
> > >job, but successfully uses Sch. C.
> > >
> > >Also, keep in mind that it's not necessarily advantageous to file Sch. C.
> > >The pesky self-employment tax takes something like an additional 14% of
> > >your profit (after figuring in the deduction for SE tax). (If your other
> > >job puts you over the Soc Security max, the self-employment tax drops to
> > >the approx 2.5% Medicare component.) For people with low gambling
> expenses
> > >(but who itemize), it's often better to file as a recreational gambler.
> > >
> > >--Dunbar
> > >
> > >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
>[Non-text portions of this message have been removed]
<<Where do you get info on the audit rate for filing a Sch C for gambling? How do you know it's in the "high 90%'s" and what kind of "circumstances" will put you in the high 90's group?
Most people "guess" at this because they more often hear from their gambling friends when they do get audited. People who do not get audited are less likely to talk about it.
I have read information from tax experts who do say your likelihood of getting audited "goes up" if you are a business and even higher if it is a "cash" business. And some say they are seeing more gambling audits in their tax preparation business.
I don't think the IRS puts out any exact figures, so when someone gives an exact figure it is usually a "guess." If you are a tax preparer you may have a more "educated guess."
One needs to be very careful about taking Internet forum advice , especially in this tax area. Everyone has different circumstances and one person's experience may be based on facts and conditions much different than your own.
________________
Jean $�ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
I agree, Jean. There were a couple of assertions in this thread of 100% or near 100% liklihood of being audited if a taxpayer files a Sch C for gambling. I, too, suspect the posters are merely guessing.
--Dunbar
--- In vpFREE@yahoogroups.com, "Jean Scott" <queenofcomps@...> wrote:
<<Where do you get info on the audit rate for filing a Sch C for gambling?
How do you know it's in the "high 90%'s" and what kind of "circumstances"
will put you in the high 90's group?Most people "guess" at this because they more often hear from their gambling
friends when they do get audited. People who do not get audited are less
likely to talk about it.I have read information from tax experts who do say your likelihood of
getting audited "goes up" if you are a business and even higher if it is a
"cash" business. And some say they are seeing more gambling audits in their
tax preparation business.I don't think the IRS puts out any exact figures, so when someone gives an
exact figure it is usually a "guess." If you are a tax preparer you may
have a more "educated guess."One needs to be very careful about taking Internet forum advice , especially
in this tax area. Everyone has different circumstances and one person's
experience may be based on facts and conditions much different than your
own.
________________
Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
dunbar_dra wrote:
I agree, Jean. There were a couple of assertions in this thread of
100% or near 100% liklihood of being audited if a taxpayer files a
Sch C for gambling. I, too, suspect the posters are merely
guessing.
What's worth taking issue with as well is that the prospect of an audit is posed by these posters in ominous tones.
From what I recall, those who have had their Sch C's questioned have principally been challenged on qualification as a "pro", and in some cases been required to go the Sch A route instead. I never sensed there was a big drama involved, nor dire consequence (though obviously a disadvantageous result).
Point being that if going the Sch C route is advantageous, and you feel you can make a reasonable case for it, it's worth going for. You just want to know your potential liability should you be successfully challenged.
My estimates are purely from my experience representing taxpayers in Reno
as an enrolled agent. There is no 'database' with these figures, at least
none that is public, but from my own conversations with the 10 auditors in
Reno that I work with on an almost daily basis. I can tell you that every
auditor handles gaming differently due to their lack of training and
understanding of gambling. When I discuss gaming logs, they all have
different opinions as to how they handle it. When I explain the tax code,
they stick to their 'interpretation' and they will let it be resolved in
appeals.
So, yes, I do have some experience with this.
At 11:08 PM 9/13/2010 +0000, you wrote:
Where do you get info on the audit rate for filing a Sch C for gambling?
How do you know it's in the "high 90%'s" and what kind of "circumstances"
will put you in the high 90's group?I'm seriously interested in what you are basing these numbers on. Is this
just your guess or do you have access to some strange database that
isolates Sch C's for gambling under various circumstances?--Dunbar
--- In <mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com, Ernie
Mayhorn <e_mayhorn@...> wrote:
>
> The audit rates are in the high 90%'s for Sch C's as gamblers under many
> circumstances. If this is your only main source of income then you're
> probably OK-if it isn't, then you are the one at risk.
>
> You can easily get audited, just ask-they will be happy to assist you.
>
>
> At 07:54 PM 9/13/2010 +0000, you wrote:
> >
> >
> >
> >
> >"you will definitely get audited". Really? What's the basis for that and
> >other blanket statements in this thread?
> >
> >I've been filing a Sch C for gambling for at least 17 years and I've
never
> >been audited. I've always done my own tax return, too. One year I had
over
> >$200K in W-2G's and less than $20K in net profit (yeah, not a great
> >year!), but still no audit.
> >
> >Maybe I should complain about being neglected. If everyone else is being
> >audited, why can't I get audited?
> >
> >--Dunbar
> >
> >--- In
<mailto:vpFREE%40yahoogroups.com><mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com,
Ernie
> >Mayhorn <e_mayhorn@> wrote:
> > >
> > > A better idea would be to work with an EA or CPA to do this return,
since
> > > you will definitely get audited and they can begin getting you
ready for
> > > the audit. Doing this yourself would be foolish.
> > >
> > >
> > >
> > >
> > > At 11:48 PM 9/12/2010 +0000, you wrote:
> > > >
> > > >
> > > >
> > > >
> > > >--- In
> >
<mailto:vpFREE%40yahoogroups.com><mailto:vpFREE%40yahoogroups.com><mailto:vpFREE%40yahoogroups.com>vpFREE@yahoogroups.com,> > "Cogno
> > > >Scienti" <cognoscienti@> wrote:
> > > > >
> > > > > what7do7you7want wrote:
> > > > >
> > > > > <<I am using Turbo Tax and wish to file gambling winnings
> > > > > on Schedule C. I am not quite sure where this should go
> > > > > within Turbo Tax.>>
> > > > >
> > > > > Is this a trick question? It goes on Schedule C. If you're
using the
> > > > > interview there should be a topic about profit/loss from a
business
> > (sole
> > > > > proprietorship). Or you can just open up the form and fill it out.
> > > >
> > > >I had the same "trick question" reaction.
> > > >
> > > >You do have to make use of the "override" capability with Turbo
Tax, if
> > > >using it to file a Sch C for gambling. Turbo Tax will want to put your
> > > >W-2G's on the "other income" line. If you want, you can add a note on
> > that
> > > >"other income" line stating that W-2G income is included with SchC.
> > > >
> > > > >
> > > > > The IRS has been disallowing the use of Schedule C for reporting
> > gambling
> > > > > winnings unless you are a full-time winning gambler without
another
> > primary
> > > > > source of income. I trust you've investigated this and have
come to an
> > > > > educated decision.
> > > >
> > > >I don't think this is uniformly the case. They may ask you to support
> > your
> > > >claim, but you are not automatically disqualified if you have another
> > job.
> > > >I know of more than one pro who has what would be considered a
full-time
> > > >job, but successfully uses Sch. C.
> > > >
> > > >Also, keep in mind that it's not necessarily advantageous to file
Sch. C.
> > > >The pesky self-employment tax takes something like an additional
14% of
> > > >your profit (after figuring in the deduction for SE tax). (If your
other
> > > >job puts you over the Soc Security max, the self-employment tax
drops to
> > > >the approx 2.5% Medicare component.) For people with low gambling
> > expenses
> > > >(but who itemize), it's often better to file as a recreational
gambler.
> > > >
> > > >--Dunbar
> > > >
> > > >
> > >
> > >
> > > [Non-text portions of this message have been removed]
> > >
> >
> >
>
>
> [Non-text portions of this message have been removed]
>
[Non-text portions of this message have been removed]