Calculate the Net Tax Cost/Benefit of Filing as a Professional Gambler

There are two main tax benefits of filing taxes as a professional gambler. First, it allows you to net your wins and losses which leads to a much lower AGI which in turn affects a great deal of tax deductions. Second, it allows you to deduct expenses incurred while gambling such as food, travel, and equipment. However, professional gamblers must pay self-employment tax which is considerable - recreational gamblers do not pay this tax.

Deciding on whether you should file as a professional is a very complex decision that is full of risks and uncertainties. However, given the complexity of the tax code even figuring out the amount of savings/cost of choosing professional over recreational is extremely difficult without basically doing your taxes twice. To evaluate taking a risk you must be aware of the reward - this calculator is designed to help you quickly estimate the monetary amount you stand to gain or lose by filing as a professional gambler.

Two important notes. First, this calculator does not take into account every possible scenario and is only an estimate. It is based on the criteria I used to make this decision for myself; I hope to expand it with time. Second, the calculator will not tell you whether you should file as a professional - it simply estimates the financial gain/loss of doing so to help you determine if the risk and hassle is worth the benefit. You should consult a tax professional who specializes in gambling.

Tax Year:	20072008200920102011201220132014201520162017
Filing Status:	SingleMarried, Filing Jointly
Income Subject to Self-Employment Tax:	any income, excluding gambling, on which you pay social security taxes
Rental Property Income/Loss:	include all deferred losses
Other Income:	capital gains, interest, dividents, etc.
Gambling Winnings:	sum of all your winning sessions
Gambling Losses:	sum of all your loosing sessions
Gambling Expenses:	include deductable value of expenses including car, meals, etc.
AGI Deductions:	any AGI deductions you will claim (IRA, HSA, etc.)
Student Loan Interest:	amount of interest you paid on student loans if any
State Taxes:	state taxes you can claim as itemized deductions
Other Itemized Deductions:	other itemized deduction (excluding gambling losses)
Number of Personal Exemptions:
Marginal Federal Tax Rate (%):
Marginal State Tax Rate (%):
Investment Rate for Deferred Loss (%):	how much interest you earn on your money