Feel free to move if this isn't the right place

I normally file my taxes on turbotax but this year is a bit different as it was the 1st time i sell action and cash >5k (got W2 etc).

So if i understand correctly I need to get a W9 from the guys i paid(already done) and issue them(and IRS) an 1099 right?

My question is how do i go about doing this on turbotax? I have to claim the entire win when entering the W2G but I can't find where to enter the amount paid to backers(therefore it's telling my i owe $x to the gov based off my entire cash and not just what i kept).

Is this even possible or do i have to get a cpa...seems a bit much for a relatively "small" cash.

Thanks in advance

I sorta found the 1099 section but it seems it's for only if i received one. I want to send some out and deduct the amount from my total winnings. Do i have to set myself up as a "business" in order to do this? Seems like a bunch of commotion for a small amount of $

surely there has to be a tax Q&A thread somewhere on this forum?

My main question is do i subtract the amount i paid out from the Amount i enter in my W2 column(on turbotax)? Will that raise eyebrows as that doesn't match the amount on my W2 from Harrah's?

Try the US Taxes sticky in this forum. You can read there about staking, and I think you will find there the link to Russ Fox's blog on how to go about what you are asking.

Thanks; I read through that but all those assume you are doing it with an accountant. I was hoping to stay away from that and do it online so I was hoping to find some advice pertaining to that but i may have to contact an accoutnant.

You can get the forms and instructions from the IRS and have at it. Turbo Tax is designed for the least common denominator. They don't want to get into messing around with complicated tax questions. If the forms are too much work and the program is not sophisticated enough that's what you would pay a professional to handle.

At the very least, you would probably have to move up to the level that a software package allows a small business return.

Turbotax is not the place to go for anything complicated when it comes to advanced forms ,, heck , it was me who got them to add the w2G forms to their system like 8 years ago .

You can do it in TurboTax Deluxe without an accountant. However, if you already read Russ Fox's blog on what to do as linked in the US Taxes sticky and still wrote your OP to this thread, then you don't really have enough understanding of tax returns to do it yourself. I'd recommend you use an accountant. Just bring them a copy of Russ's blog and the relevant portion of the tax sticky so they know what you want to do.

I understand what Russ is saying. My question was how to do it in Turbotax as opposed to going to a CPA which is what Russ says. (Go to CPA, collect W9s, which i've done, and have cpa send 1099s to appropriate parties). I don't have turbotax deluxe so maybe that's what i'm missing. Regular turbotax wants me to setup a business even tho this is just a hobby for me and i also don't see anywhere that allows me to issue 1099s to anyone, only to claim it if i received one.

That's what I mean: Since you don't understand the bolded, you should go to a CPA or tax pro. If you still want to do it on your own, search the IRS site for instructions on who can and how to issue 1099s.

Thanks.

Still feels like I"m missing some bit of info. I know I can't be the only amateur who sells action and hits a score...I'm wondering what everyone else in my spot does. Seems a bit overboard to hire a CPA for a 9k score...

Hints:
1. You will file a Schedule C for yourself as a business for the portion of your score that is paid out to your backers, as it says in Russ's blog.
2. IRS instructions for issuing 1099s (pdf file): http://www.irs.gov/pub/irs-pdf/i1099gi.pdf

As far as what everyone else does, it is more than likely not done correctly.

yea you are prob right on your last point. I saw the schedule C info...I was just thinking there is an easier way than to file as a business but oh wells. Thx for the info

Ok I think I got it. Only one question about russ' blog

"The accountant then splits his winnings: his share remains as gambling winnings (line 21); the portion belonging to others is moved to a Schedule C as receipts (income) (and the accountant or the winner mails checks to the other participants)"

Is he saying that when I enter 'gambling winnings' from my W2 I put my share right? Will it be a red flag if that number doesn't match what's on the W2? I'm not sure what line 21 he is referring to.

Btw i talked to my cousin who is a CPA and she's ignorant to poker/backing but said i could possibly just claim what i paid out as a loss as long as i have proof in form of check.

Ya my CPA is suggesting that I just do this. Is that a bad idea ?

No idea on how to honestly handle a tax situation is a bad idea until the day that the IRS disallows it. But as long as you pay the full taxes due, the method of getting there isn't terribly important. The downside of this method is that if you don't already itemize deductions, you will have to in order to take the gambling loss deduction and thereby lose your standard deduction.