Quote:
Originally Posted by TruFloridaGator
Take out a % when you cash out ldo.
Quote:
Originally Posted by dave1mo
Yeah that's what I should have been doing from the start. I did it with my freelance money but wasn't paying attention for poker. I didn't start playing professionally until like september so before that I was still looking at it as just play around with money because I'm a life donk.
I've been paying quarterly's most years since 1990. If you continue to play as a pro you are supposed to be paying quarterly as well. This is the most important bill you need to pay imo.
Here is what you should do imo: Set up a separate savings account. When you cash out, take X% out and stick it in that account. Never touch the money in that account until you need it for taxes. Get a savings account that pays significant interest. I use ING and am currently getting something like 2.5 or 3%, but there might be better ones out there if you do some research.
Also, I would set aside enough to fund a SEP IRA. You can put up to 20% of your net income into one and that money will not be taxed. I stick about 40% of my gross pay into my tax account every time I get paid and that works out about right for my taxes + SEP. You might want to use a tax advisor to figure out how to do this best going forward.