I find it a little strange that Rob Singer has no idea of the tax consequences of W-2s. Of course, you can avoid the AGI problem if you file a Sched C as a professional gambler, but this is not allowed by the IRS for everyone who plays negative games and even for most APs.
Harry and Jean are both correct and indicate there is a long list of negative tax issues. I want to mention that W-2s do not reduce your Social Security benefits, but they can increase the taxes you may need to pay on your SS benefits. Only half of your SS benefits are taxable but only if you exceed a rather low income threshold.
If you are paying a Medicare premium you may end up paying a much higher premium if your AGI goes over $85,000. This negative consequence is not well known because it does not affect your taxes.
If you live in a state that does not allow you to itemize your losses you can really get whacked with a huge state tax. One high roller on this board found out the hard way.
If you intend to play a lot at higher denom you really must be aware of the tax and Medicare issues.
Chris
--- In vpFREE@yahoogroups.com, "Queen of Comps" <queenofcomps@...> wrote:
>
> In Tax Help for Gamblers I have a long list of items that can be affected negatively when W-2Gs inflate your AGI. In the 1st edition that list is on pages 45-46. A newly-updated edition is coming out next month, both in eBook and hard copy form, but I don’t know the exact page # that will have that information. But it will be in the same chapter, “Filing Your Return,†which discusses at length this problem for many recreational gamblers.
>
> --------------------------------
> Jean $¢ott, Frugal Gambler
> http://queenofcomps.com/
> You can read my blog at
> http://jscott.lvablog.com/
> .
>
>
>
> [Non-text portions of this message have been removed]
>
