Quote:
Originally Posted by zachvac
So this means that someone who makes $8k in his summer job pays $0 in taxes but guy who makes 8k at summer job and wins 1k and loses 1k to be a break-even poker player now owes $800 because bottom rung for income tax (think it went up to 10k) is 10% and he made over $900 in unearned income?
Just because you need to file doesn't mean you will actually end up owing taxes.
If you make 8K at a job, win $1K and lose $1K, you net income will be $9K. You will be eligible for a $1K itemized deduction, but you should just take the standard deduction instead. After the standard deduction and the personal exemption, your total income actually subject to taxation will be $50, so you will owe $5 in taxes.
Of course, if you are a student with a summer job, and your parents are still claiming you as a dependent, you cannot take the personal exemption and you will owe more. But this is true re: the summer job income whether or not you have any gambling winnings or losses.