The distinction between gross and net winnings on sportsbook statements is crucial - you'll want to look at the column headers carefully. Net winnings statements will typically show something like "Net Winnings" or "Profit/Loss" while gross statements might say "Total Payouts" or "Amount Won." If you see a column that shows the full amount returned to you (including your original stake), that's gross. What you want for tax purposes is the profit-only amount. Most major books like DraftKings and FanDuel default to net winnings in their annual summaries, but smaller or offshore books might vary. Using multiple sportsbooks isn't suspicious at all - it's actually very common for bettors to shop for better odds and bonuses. The IRS expects people to use multiple platforms. Just make sure you're reporting the combined totals from all platforms accurately. If anything, having records from multiple regulated US sportsbooks makes your reporting more credible since these companies also report to the IRS. Pro tip: Download your annual statements from all your books in January while they're still available. Some books only keep them accessible for 90 days after year-end, and you don't want to be scrambling in March trying to reconstruct your records.

This is a really comprehensive discussion! I'm glad Adrian asked this question because I was struggling with the same confusion. After reading through all these responses, it's clear that the key point is: **you only pay taxes on the NET profit from each winning bet, not the gross amount returned to you**. What I found most helpful was learning about the annual summary statements from sportsbooks - I had no idea these existed! I just downloaded mine from DraftKings and it clearly shows "Net Winnings" which makes tax reporting so much simpler than trying to calculate everything manually. For anyone else reading this who's new to sports betting taxes, here are the main takeaways I gathered: 1. Stakes ARE deducted from taxable winnings automatically for each winning bet 2. You must report ALL gambling winnings as income (even without W-2G forms) 3. You can only deduct losses if you itemize deductions on Schedule A 4. Download annual summaries from all your sportsbooks in January before they expire 5. Keep detailed records throughout the year rather than reconstructing at tax time Thanks to everyone who shared their experiences - this thread probably saved a lot of people from making costly mistakes on their tax returns!

I just went through this same exact situation a few weeks ago and can definitely relate to that initial panic! The "Credit Transferred out to 1040 202312" notation appears when the IRS moves an overpayment from one tax account to your 2023 individual return. In my case, it was from a previous year's amended return that resulted in a credit I had forgotten about. The system automatically applied it to my 2023 taxes, which actually increased my refund by $340. What really helped me was logging into my IRS online account and checking my "Account Transcript" for both 2022 and 2023 - you should see a matching "Credit Transferred In" entry somewhere that shows the other side of this transaction. The good news is this is completely normal and usually works in your favor since it's your own money being moved around efficiently!

I can totally understand the initial confusion - those transcript codes are really cryptic! From what I'm reading here, it sounds like the "Credit Transferred out to 1040 202312" is actually good news for you. The IRS found money you overpaid somewhere (maybe estimated payments, withholdings, or a credit from a previous year) and automatically moved it to benefit your 2023 tax return. The "202312" format means December 2023, so it's being applied to your 2023 individual return. I'd definitely recommend downloading both your 2022 and 2023 account transcripts from the IRS website to see the full picture - you should find a corresponding entry showing where this credit originated from. In most cases, this either increases your refund or reduces what you owe, so it typically works in your favor!

I've been dealing with forex tax reporting for a few years now and wanted to add a few practical tips that might help: First, keep detailed records from day one - not just your broker statements, but also notes about your trading strategy and any hedging purposes. The IRS loves documentation, especially for forex where the rules can be complex. Second, consider consulting with a tax professional who specializes in trader taxation before making the Section 988 vs 1256 election. The $4,300 profit you mentioned might seem small, but if you're planning to scale up your trading, getting the right foundation now will save you headaches later. Third, be aware that some brokers provide better tax reporting than others. If you're serious about forex trading, it might be worth switching to a broker that provides detailed 1099 forms or at least comprehensive trade summaries that break down your activity by currency pair and trade type. One last thing - don't forget about state taxes! Some states have different rules for how they treat forex gains, and a few states don't conform to federal elections for Section 1256 treatment. Make sure you understand your state's position too. The learning curve is steep, but once you get your system down, tax season becomes much more manageable!

This is such a timely post for me! I've been trading forex for about 8 months now and just realized I need to get my tax situation sorted out before year-end. Reading through all these responses has been incredibly helpful. I had no idea about the Major Currency Pair Election for Section 1256 treatment - I thought that was only for futures contracts. The fact that you can potentially get the 60/40 capital gains treatment on spot EUR/USD and GBP/USD trades is huge. I'm definitely going to look into making that election. One question I have - if I make the Section 1256 election now for the remainder of this year, does that lock me into using it for all future years, or can I change my mind for next year's trading? I'm profitable this year but not sure what next year will look like. Also, for anyone else reading this who's newer to forex taxation like me - I found Publication 550 from the IRS to be somewhat helpful for understanding the basics, though it's definitely not the easiest read. The examples in there helped me understand the difference between ordinary income treatment vs capital gains treatment. Thanks to everyone who shared their experiences - this stuff is way more complicated than I expected when I started trading!

I want to echo what others have said about avoiding the rental route - it's absolutely not worth the risk. As someone who works in tax compliance, I've seen the IRS come down hard on these arrangements, and the penalties can be career-ending. However, I do want to offer some hope for your timeline. The IRS has actually streamlined their EFIN processing significantly for the 2025 season. If you submit a complete, error-free application now, you're looking at closer to 4-5 weeks rather than the traditional 6-8 weeks. The key is making sure everything is perfect the first time - any errors or missing documents will reset your timeline. For the PTIN, definitely apply today. It's straightforward and you'll have it immediately. In the meantime, consider reaching out to local tax preparation offices, enrolled agents, or CPAs who might need seasonal help. Many are actually looking for qualified preparers right now and would be open to a legitimate subcontractor arrangement. This gives you income, experience, and a legal way to prepare returns while your own credentials process. The temporary partnership route that others mentioned is really your best bet. It's completely legal, gives you practical experience, and positions you well for when your own EFIN comes through. Don't let impatience derail what could be a successful long-term career!

As someone who just went through the EFIN application process myself, I want to add that the IRS has also improved their communication this year. You'll actually get email updates at key stages of your application review, which helps eliminate the guesswork about timing. One thing I learned the hard way - when gathering your business documentation, make sure your business address on your state registration exactly matches what you put on the EFIN application. I had to resubmit because my state filing used "Street" while my EFIN application used "St" and that small difference caused a delay. Also, if you're planning to work from home initially, the IRS now accepts a simple business use statement for your home office rather than requiring complex documentation. This has streamlined things significantly for solo practitioners. The partnership route everyone's suggesting really is the way to go. I reached out to about 6 local preparers and 4 were interested in some kind of arrangement. Most were looking for 70/30 or 60/40 splits depending on who provides the software and handles the administrative work. It's actually a win-win since many established preparers want help during busy season but don't want permanent employees. Don't give up on starting this season - there's definitely still time to do this properly!

I've been in a similar situation with multiple jobs and variable hours, and honestly, the approach that worked best for me was keeping it simple. Don't overthink the multiple jobs checkbox - with your variable schedule (8-15 hours vs 12-40 hours), the standard calculations won't be accurate anyway. Here's what I'd recommend: Update your current job's W-4 to add about $75-80 per paycheck on line 4(c) (a bit more than your calculated $67 to account for hour variability). Leave the multiple jobs box unchecked on both forms. For your new job, just fill out the W-4 normally as if it's your only job. This "one job handles all adjustments" approach is much cleaner than trying to coordinate withholding between two employers with unpredictable schedules. Plus, if your hours change dramatically at either job, you only need to update one W-4 form rather than trying to rebalance both. The key is monitoring your withholding every few months by checking your paystubs against a tax calculator. If you're still on track to owe money, bump up that extra withholding amount. If you're over-withholding, reduce it. Way less stressful than trying to make the worksheets work with irregular income!

This thread has been incredibly helpful! I'm in almost the exact same boat - currently full-time but transitioning to two part-time jobs with variable hours. The consensus here seems clear: handle all the withholding adjustments through one job rather than trying to coordinate between both. From what everyone's shared, I'm planning to: 1. Add extra withholding ($75-80 per paycheck) to my higher-paying job's W-4 on line 4(c) 2. Leave the multiple jobs box unchecked on both forms 3. Fill out the new job's W-4 as if it's my only job (no special adjustments) 4. Monitor my withholding quarterly and adjust that one number if needed The "primary vs secondary job" approach makes so much more sense than the official worksheets when you have unpredictable schedules. It's reassuring to see multiple people confirm this method works well in practice. One follow-up question - for those who've done this, do you typically round up your extra withholding calculation to the nearest $5 or $10? The math gives me around $67-70 per paycheck, but I'm thinking of going with $80 to keep it simple and build in a buffer for those weeks when hours spike unexpectedly.