This is exactly the kind of clear breakdown I needed! I've been stressing about this for weeks. Just to make sure I understand correctly - even though my net profit was only $5,400.66, I still have to report the full $33,862.41 as income and can only get relief from the losses if I itemize deductions? That seems like it could really hurt people who have modest gambling activity but take the standard deduction. In my case, I'm probably better off itemizing since my losses are so substantial, but I can see how someone with smaller amounts might get stuck paying tax on gross winnings with no offset. Thanks for confirming that my session method approach is valid too - I was worried I was doing something wrong by grouping transactions by day rather than tracking every individual bet. The FanDuel logs have hundreds of entries and organizing by session made it so much more manageable. One last question - do I need to attach the FanDuel transaction logs to my tax return, or just keep them for my records in case of an audit?

You're exactly right - you do need to report the full $33,862.41 as income even though your net was only $5,400.66. And yes, it can definitely hurt taxpayers who take the standard deduction since they get taxed on gross winnings with no offset for losses. You don't need to attach your FanDuel transaction logs to your tax return - just keep them in your records for potential audit purposes. The IRS recommends keeping gambling records for at least 3 years (some say 7 to be safe). Make sure your session summaries clearly show how you calculated your wins and losses, as that documentation will be key if questioned. Since your gambling losses are substantial relative to your winnings, itemizing is probably your best bet. You'll want to compare your total itemized deductions (gambling losses + state taxes + mortgage interest + charitable donations, etc.) against the 2023 standard deduction to confirm it's worth it. Also keep in mind that if you received any W-2G forms from FanDuel for large wins, make sure those amounts are included in your $33,862.41 total - don't double-count them!

This is really comprehensive advice, thank you! The point about different tax years is something I hadn't considered - I need to go back and make sure I'm only including sessions that actually occurred in 2023. I'm curious about the W-2G forms you mentioned. FanDuel didn't send me any, but I did have a few larger winning sessions. Do you know what the threshold is for when they're required to issue those forms? I want to make sure I'm not missing anything that should have been reported separately. Also, when you organized your sessions by calendar day, did you count a session that started late at night and went past midnight as one session or split it between the two days? I had quite a few late-night betting sessions during football season that crossed over to the next day.

Great question about W-2G thresholds! For sports betting, sportsbooks are required to issue W-2G forms when you have winnings of $5,000 or more AND the winnings are at least 300 times your wager. So if you bet $10 and won $3,000, that wouldn't trigger a W-2G, but if you bet $10 and won $5,000+, it would. For your late-night sessions that crossed midnight, I'd recommend splitting them by calendar day for consistency. So if you started betting at 11 PM on Sunday and continued until 2 AM Monday, treat the Sunday bets as one session and the Monday bets as a separate session. This keeps your record-keeping aligned with calendar dates and makes it easier to verify against your transaction logs. The key is whatever method you choose, just be consistent throughout all your records. Document your approach so if you're ever audited, you can explain your methodology clearly.

That's actually a really interesting suggestion! Do you know if these places typically hire people without formal accounting backgrounds? And would I still need my own PTIN if I worked under them?

Many of these places absolutely hire people without accounting backgrounds - they look for people who are detail-oriented and good with customers, then provide their own training. H&R Block for example has their own tax course that runs for about 8-12 weeks before tax season starts. Yes, you would still need your own PTIN even when working under their EFIN. Every person who prepares returns for compensation needs their own PTIN - it's tied to you individually, not the business. It's a good stepping stone because you get valuable experience while using their resources, then can take that knowledge when you branch out on your own.

The AFSP is great advice. I completed it my first year and it definitely helped clients trust me more. How many hours of continuing education is required again? I remember it being reasonable but can't recall the exact number.

This is such helpful information! I'm just getting started with understanding farm taxes myself. One thing I'm curious about - when you mention keeping detailed records to show "genuine profit motive," what's the best way to document that intent? Is it enough to keep a simple journal of farm activities, or do you need something more formal like a written business plan? I want to make sure I'm setting myself up correctly from the beginning rather than scrambling to create documentation later if questions arise.

Great question @Dylan Mitchell! From what I've learned through my own farm operation and research, documenting profit motive goes beyond just a simple journal, though that's definitely part of it. A written business plan is incredibly valuable - it doesn't need to be fancy, but should outline your farming goals, target markets, expected expenses and revenues, and strategies for profitability. The IRS loves to see evidence that you've thought through the business aspects seriously. I'd also recommend keeping records of: time spent on farm activities (showing it's not just casual weekend hobby work), any agricultural education you pursue (workshops, extension courses, farm publications you read), marketing efforts (even if it's just posting on Facebook marketplace), and changes you make to improve profitability (switching crops, upgrading equipment, improving efficiency). Bank records are crucial too - having a separate business account for farm income and expenses shows you're treating it as a legitimate business operation rather than mixing it with personal finances. The key is showing the IRS that you're operating like a real business owner who cares about making money, not just someone who enjoys farming as a hobby and wants tax writeoffs.

This is really helpful, thank you! I'm completely new to farm taxes and this distinction between business deductions and personal itemized deductions makes so much sense now. Quick question about IRS Publication 225 - does it cover hobby farm vs business determination criteria? I want to make sure I understand those rules from the start since several people mentioned audit risks around that issue. Also, when you mention home internet/phone deductions, is there a specific percentage you can claim or do you need to calculate actual business use? I'm trying to get all my record-keeping systems set up properly before our first full farming season.

That's a really good point I hadn't considered. I think my company might have done something similar for the first week before the STD kicked in. How would I be able to tell the difference between the regular STD payment and the portion that came from my PTO?

You should be able to see it on your pay stubs from that period. Look for separate line items - there might be one for regular salary/PTO and another specifically labeled as disability or STD benefits. The best approach is to request a detailed breakdown from your payroll department. They can provide documentation showing exactly which payments came from which sources. This is important because they're potentially taxed differently. Your HR/Benefits team should also have documentation about how your specific STD plan integrates with your other paid leave benefits.

Is there a website or resource that breaks down the state-by-state rules for disability taxation? I'm in Pennsylvania and can't find clear info for my state.

For Pennsylvania specifically, the state generally follows federal tax treatment for most disability benefits. So if your STD is taxable federally, it's likely taxable for PA state taxes too. However, PA does have some exemptions for certain types of disability payments. Your best bet is to check the PA Department of Revenue website or Publication PA-40 (the state tax instruction booklet) - they usually have a section on disability income. You could also try calling their taxpayer assistance line, though I know getting through can be hit or miss during tax season.

@Diego Chavez That s'really reassuring about the 14 week timeframe! I was dreading having to wait like 6+ months. Quick question - when you e-filed your amendment, did you get any kind of confirmation or tracking number right away? I m'paranoid about making sure it actually gets submitted properly.

@Diego Chavez Yes, you definitely get a confirmation when you e-file! Most software will give you a submission ID and the IRS will send an acceptance/rejection notice within 24-48 hours. Way more peace of mind than dropping something in the mail and hoping for the best. Pro tip: save that confirmation email - it s'your proof of filing if anything goes sideways later.

Thanks for the professional insight @Hugh Intensity! That's really helpful to know about the processing time differences. Quick question - when you mention supporting documents for complex situations, do they typically tell you upfront what needs to be mailed separately, or do you only find out after submitting the e-filed amendment? I want to make sure I'm not missing anything that could slow down the process.

@Hugh Intensity That s'really good to know about the processing time differences! As someone who s'about to file their first amendment, this kind of insider knowledge is super valuable. Do you have any tips for double-checking everything before submitting to avoid common mistakes that might cause delays? I m'pretty nervous about messing something up and having to start over.