Quote:
Originally Posted by Nitewin
I know it's a bit late but here I am finally getting to it. I'd like to think that I haven't been intentionally avoiding taxes. My life has just been a complete horrible mess the last few years so I hope you fellow leggo members can help me out. Regarding taxes, there's just so much information that it overwhelms me a little. I've watched both Russ Fox videos but I'm still looking for some easy steps to follow. I hope you can help me.
1. If I have not payed taxes in the past and do not have any record of my play time, would it be okay to start today and forget the past? Or should I fabricate records or use estimates?
2. What forms do I have to fill out? State? Federal? What else? I'm a beginner when it comes to taxes. I've filed as a dependent all my life. So would I be filing "Kiddie Taxes"?
3. I know MA is a bad state to live in for gambling as a hobbyist. Does it really matter if you file as a pro or not? Are you declaring yourself as a gambler in any form? I thought it was just "other-income".
Please walk me through this.
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1. As a licensed tax professional, the only answer I can give is that you must correct your prior tax returns (if necessary). Fabricating records is obviously wrong.
2. You will need to complete federal tax forms and your state's tax forms (apparently MA).
3. Whether you are a professional or an amateur is a matter of facts and circumstances. You are usually either one or the other (but there are exceptions). If you were claimed as a dependent by your parents in 2009, the Kiddie Tax may apply; again, this depends on your facts and circumstances.
I would strongly suggest you get account histories from the site(s) you have played at so you can reconstruct your gambling wins and losses. That's the first step that's necessary in order for you to know what you won or lost.
Hope this helps,
Russ Fox