For some of you in DFS, next year could be rough for you tax-wise. For some it could be great. For hobby players, there is NOWHERE on Itemized Deductions you can deduct ANYTHING DFS related. No Miscellaneous Itemized for Gamblers. No Miscellaneous Deductions Subject to 2% AGI floor for Hobby DFSers. Filing as a Schedule C could qualify you for a 20% business income deduction on your Schedule C.
Now about SALT or State and Local Taxes. Next year as an Individual, you are capped at $10,000 and that’s if you Itemize. When I talk in the book about Planning for what you owe your State and Local governments, nothing has really changed. You now CAN, as a business opposed to a Hobby, attribute State and Local taxes derived from DFS income as a business deduction. Anything from Wages or Property taxes has to go on the regular Itemized Deductions. I will get into more how you would prepare this in next year’s version.