Publication 529 (2017), Miscellaneous Deductions
Gambling's other sick legacy is its encouragement of pathological behavior. Has 5 years of experience as live analyst of volleyball, tennis, football, basketball. Federal crime investigation and prosecution. Some of the deductions previously discussed in this publication are adjustments to income rather than miscellaneous deductions. Job Search Expenses Employment and outplacement agency fees. K Kickbacks, List of Nondeductible Expenses. If the property is a car used in your work, also see Pub.
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I was going to be rich, and I wasn't going to work for it. But the rumors around the dorm were increasing - everyone thought we were pouring all of our money down the drain like idiots. We had to change their minds. We declared that we were big winners and offered a chance to invest with us. Give us your money on friday and on monday we would return it, reflecting our win.
So cocky we were, that we guaranteed against losses. No one wanted to take it. The money went to our heads and we started spending it. We spent some in real life and even more future profits in our heads. We'd buy boats, an island, planes, or whatever else we wanted. I never had a cell phone before, but I went and bought the most expensive one available at the time that only high powered executives could afford. Soon we split into two teams and kept playing. We'd go to the business building at UT and play side by side, smirking at the business students who were cranking out their term papers.
I thought we were unstoppable. But Hayden, eternally more cautious than I, managed to unravel our strategy and do the math.
We were getting lucky My whole world was crashing around me. The past couple weeks had me completely convinced I was on the fast track to wealth, and I didn't want to let go of that dream. Reluctantly we cashed out and split the profits. More thorough this time I worked and worked to try to come up with a winning strategy.
By some fate, one hit me. It couldn't be that easy, could it? Sure enough, the next few months proved that it could be that easy.
Some of the casinos would pay me like that first one did, others would stiff me. Some seemed to have the games rigged and I couldn't win no matter what. As time passed I figured out which to trust and which to avoid. I took my first job the next year. I wanted a car, but didn't want to spend all my money on one, so I decided to get a job and pay myself back before quitting.
It was my first Mercedes, and I was loved it. My job was delivering pizzas, and I only needed to work for two months to recover the money spent on the car. As pizza delivering became more boring, the gambling thing looked more attractive.
In a fit of irony my car actually broke on the way home when I was one day away from earning enough to pay myself back for it. The timing chain was broken and the car was totalled. Shortly after, I decided to drop out of school.
Class was getting in the way of gambling and thanks to Papa Johns Pizza, I knew I would never get a real job again - the money isn't good enough to justify giving up my precious time. With gambling I could play whenever I wanted, take time off when I wanted, and play from anywhere in the world. Calling my mother didn't feel quite as good. In her life priority list, school is a clear number one.
And possibly numbers two and three too. The conversation ended when she hung up on me:. It seemed like a good enough idea to me. She was convinced for a long time that I wasn't making any money. I'll never forget the quote: She was wrong, though. My monthly income doubled within a few months of dropping out. After a few months she began speaking with me again, and eventually gave me some of the money they had saved up for college to use in my gambling business.
After that my income hit six figures and stayed there. The next six years, peppered with a few stressful disasters, was pretty smooth sailing. I never worked more than 20 hours a week, and often less than I hired employees, got an office, and had custom accounting software written. I even paid my taxes. Finally I burnt out, though. It occured to me that although it was easy enough to make a huge salary every year, I was never going to become a multi millionaire from gambling.
It has a limit. Also, after playing millions of dollars of hands every year, I just got sick of seeing casinos. Yesterday after a business partner reneged on a deal that we made, I decided it's finally time to quit and move on to bigger and better things.
I'll still deal with my existing cashouts, but within a month or two I'll probably be done with gambling for life. It's a bittersweet goodbye, since gambling was so incredibly profitable and fun for me. It seems like a dumb idea to forfeit so much easy money, but the fact is that I don't enjoy it anymore. I really believe that it's important to enjoy what one does, so I'm going to work on becoming a rapper.
Two gambling related books that I love are: Bringing Down the House: The Inside Story of Six M. The incident he mentioned had to do with marketing and not player relations, but it's now been more than two years since posting this and I no longer know which casino is the best.
This post is now four years old and gets a lot of people angry. Let me clear a few things up:. Yes, I was really a professional gambler for seven years. The idea that I would lie about this to make up a blog post which all of my real life friends and family have read is insane.
I will NOT tell how I made money. I will not tell you why. If you want to make money gambling, I suggest you play poker. The links to Casino-On-Net are affiliate links. I don't know if I still get paid for them, since this was posted almost four years ago. I don't know if they're still a good casino. Back when I played they were easily the most reputable casino. They might not be anymore.
Either way, I would NOT recommend gambling with them or anyone else. I thought this was clear in the post, but I wasn't a very good writer back then: To the people asking Tynan what his secret formula is, there is no secret, mathematical formula to win. This article is pure fiction. It did not happen. Think for a second and use common sense.
There are millions of people who gamble in casinos and online sites every year, and thousands of researchers, math whizzes, college students, professors, etc. At the top of the page, he casually comments, "Dedicated people may figure it out.
Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips.
A payer is required to issue you a Form W-2G. You must report all gambling winnings on your Form When you have gambling winnings, you may be required to pay an estimated tax on that additional income.
For information on withholding on gambling winnings, refer to Publication , Tax Withholding and Estimated Tax. You may deduct gambling losses only if you itemize your deductions on Form , Schedule A.
The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. If you're a nonresident alien of the United States for income tax purposes and you have to file a tax return for U.
Nonresident Alien Income Tax Return. Refer to Publication , U. Tax Guide for Aliens , and Publication , U. Tax Treaties , for more information. You can't deduct fines or penalties you pay to a governmental unit for violating a law. This includes an amount paid in settlement of your actual or potential liability for a fine or penalty civil or criminal.
Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. You can't deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. You can't deduct the cost of a home security system as a miscellaneous deduction. However, you may be able to claim a deduction for a home security system as a business expense if you have a home office.
You can't deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. You can't deduct premiums you pay on your life insurance. You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. You generally can't deduct amounts paid or incurred for lobbying expenses. These include expenses to:. Participate, or intervene, in any political campaign for, or against, any candidate for public office;.
Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums; or. Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials.
Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. A covered executive branch official, for the purpose of 4 above, is any of the following officials.
Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. Any individual serving in a position in Level I of the Executive Schedule under section of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals.
If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you can't deduct that part. You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business.
You can deduct expenses for attempting to influence the legislation of any local council or similar governing body local legislation. An Indian tribal government is considered a local council or similar governing body. If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Payments by the other person to you for lobbying activities can't be deducted.
You can't deduct a loss based on the mere disappearance of money or property. However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. The diamond falls from the ring and is never found. The loss of the diamond is a casualty.
You can't deduct the expenses of lunches with co-workers, except while traveling away from home on business. You can't deduct the cost of meals while working late. However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. Damages for personal injury except certain whistleblower claims and unlawful discrimination claims.
You can't deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. You can't deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate aren't deductible.
You can't deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. You can't deduct contributions paid to a private plan that pays benefits to any covered employee who can't work because of any injury or illness not related to the job. You can't deduct any charge including taxes for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business.
You can't deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. You can't deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. You can't deduct expenses to produce tax-exempt income.
You can't deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. If you have expenses to produce both taxable and tax-exempt income, but you can't identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. You can't identify the amount of each expense item that is for each income item. You generally can't deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you or your employee on personal or business travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual.
You can't deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. You can't deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties.
If you have deductible employee business expenses, you usually must file either Form or Form EZ. You must file Form or Form EZ if any of the following applies to you. You are a qualified performing artist claiming performing-artist-related expenses.
You are a fee-basis state or local government official claiming expenses in performing that job. You are an individual with a disability and are claiming impairment-related work expenses. See Impairment-related work expenses , later. You have travel expenses as a member of the Armed Forces reserves that you can deduct as an adjustment to gross income.
You are claiming job-related vehicle, travel, transportation, meal, or entertainment expenses. This doesn't apply if either of the following is true. Your only entry on Form or Form EZ is on line 4. You can use the shorter Form EZ instead of Form if both of the following apply.
You aren't reimbursed by your employer for any expenses. Amounts your employer included as wages on your Form W-2, box 1, aren't considered reimbursements. If you have reserve-related travel that takes you more than miles from home, you should first complete Form or Form EZ.
Use Part V of Form , Depreciation and Amortization, to claim the depreciation deduction for a computer that you didn't use only in your home office.
Complete Form , Part I, if you are claiming a section deduction. However, if you file Form or Form EZ, claim your depreciation deduction on that form and not on Form Use Form , Part III, to claim the depreciation deduction for a computer you placed in service during and used only in your home office.
Don't use Form to claim the depreciation deduction for a computer you placed in service before and used only in your home office, unless you are otherwise required to file Form Instead, report the depreciation directly on the appropriate form. If you are an employee, you enter impairment-related work expenses on Form or Form EZ. If you are self-employed, enter your impairment-related work expenses on the appropriate Form Schedule C, C-EZ, E, or F used to report your business income and expenses.
Deduct expenses of preparing tax schedules relating to profit or loss from business Schedule C or C-EZ , rentals or royalties Schedule E , or farm income and expenses Schedule F on the appropriate schedule. Debra Smith is employed as a salesperson. She isn't a statutory employee. She has the following qualifying miscellaneous deductions:. She enters the gambling losses on Schedule A, line She then completes the rest of the form.
Debra's expenses for tax return preparation are entered on Schedule A, line Her expenses for investment counseling are entered on line If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.
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Eight in 10 taxpayers use direct deposit to receive their refund. This applies to the entire refund, not just the portion associated with these credits.
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Paying electronically is quick, easy, and faster than mailing in a check or money order. Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you. Debit or credit card: Choose an approved payment processor to pay online, by phone, and by mobile device.
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TAS can help you if:. We have offices in every state, the District of Columbia, and Puerto Rico. You can also call us at Our Tax Toolkit at TaxpayerAdvocate. These are your rights. TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at IRS.
LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language.
Services are offered for free or a small fee. To find a clinic near you, visit TaxpayerAdvocate. For you and your family. Individuals abroad and more. EINs and other information. Get Your Tax Record. Bank Account Direct Pay.
Debit or Credit Card. Payment Plan Installment Agreement. Standard mileage and other information. Instructions for Form Request for Transcript of Tax Return. Employee's Withholding Allowance Certificate. Employer's Quarterly Federal Tax Return. Employers engaged in a trade or business who pay compensation. Popular For Tax Pros. Apply for Power of Attorney.
Apply for an ITIN. Home Publications Publication , Miscellaneous Deductions. Ordering forms and publications. Useful Items - You may want to see: Required as a condition of your employment. Which depreciation method to use. Exception for computer used in a home office. Reporting your depreciation deduction. Educator Expenses Eligible educator. Educator expenses over limit.
Home Office Principal place of business. Job Search Expenses Employment and outplacement agency fees. Employer pays you back. Employer pays the employment agency. Travel and transportation expenses. Federal crime investigation and prosecution. Work at two places in a day. Meals when subject to "hours of service" limits.
Work-Related Education Travel as education. Partnerships and S corporations. Nonpublicly offered mutual funds. Loss on Deposits Exception. Actual loss different from estimated loss. Bonds acquired before October 23, Deduction for excess premium. Racing horse, harness, dog, etc. Impairment-Related Work Expenses Self-employed. Dues used for lobbying. Who can use Form EZ. Computer used in a home office.
Getting tax forms and publications. Access your online account Individual taxpayers only. Delayed refund for returns claiming certain credits. Getting a transcript or copy of a return. Using online tools to help prepare your return. Resolving tax-related identity theft issues. Checking on the status of your refund. Making a tax payment. What if I cant pay now? Checking the status of an amended return. Understanding an IRS notice or letter. Contacting your local IRS office. Getting tax information in other languages.
How Can You Reach Us? Publication , Miscellaneous Deductions For use in preparing Returns. Publication - Introductory Material.
Expenses you can't deduct. How to report your deductions. Publication - Main Content. Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary.
Business bad debt of an employee. Business liability insurance premiums. Damages paid to a former employer for breach of an employment contract. Depreciation on a computer your employer requires you to use in your work. Dues to a chamber of commerce if membership helps you do your job.
Dues to professional societies. Home office or part of your home used regularly and exclusively in your work. Job search expenses in your present occupation. Legal fees related to your job. Licenses and regulatory fees. Medical examinations required by an employer. Passport for a business trip. Repayment of an income aid payment received under an employer's plan.
Research expenses of a college professor. Rural mail carriers' vehicle expenses. Subscriptions to professional journals and trade magazines related to your work. Tools and supplies used in your work. Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Union dues and expenses. Work clothes and uniforms if required and not suitable for everyday use. Damages for Breach of Employment Contract.
For the convenience of your employer, and Required as a condition of your employment. For the convenience of your employer. Dues to Chambers of Commerce and Professional Societies. Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Lobbying and political activities. Nontaxable qualified state tuition program earnings.
Nontaxable earnings from Coverdell education savings accounts. As your principal place of business for any trade or business; As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business; or In the case of a separate structure not attached to your home, in connection with your trade or business.
Principal place of business. You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time.
Employment and outplacement agency fees. Licenses and Regulatory Fees.