Taxes and Shots = Pain
First, let’s talk taxes. Many of you are probably doing the same thing I’m doing now, gathering up paperwork so you – or your accountant – can start working on your 2020 tax returns. I still get some questions about how to handle gambling figures, but I will give this reminder: I can’t answer most of them, because this would involve knowing your total financial picture. Tax issues are so complex that there are almost no short one-fits-all answers.
I can suggest reading Tax Help for Gamblers and/or checking with a professional tax preparer who is knowledgeable about gambling issues. And if you don’t know one, I would highly recommend Russell Fox, who helped big time to make the most recent (fourth) edition of this tax book very up to date, adding valuable details about new problem areas like virtual currency and fantasy sports. And here is a bit of information about Russ you might not know, thanks to a reader who left this note in the Comments: “In addition to being a tax guru, Russ is one helluva poker player. I’ve known Russ for many years. He is one of the organizers of BARGE, an annual Las Vegas gathering of poker players, mostly amateurs, although some noted pros have attended and/or come from our ranks.”
Last year’s edition of the tax book will still be helpful for 2020 return preparation. However, one recent clarification, which was foreshadowed in that book, has to do with the IRS treatment of the taxation of fantasy sports. You can read about that in my December 12th blog.
And if you’re dabbling in that big gamble of virtual currency, you might be interested in an article with the scary title: “IRS is ‘setting the trap’ for bitcoin and virtual currency investors on 2020 tax form.”
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Someone asked a question about the IRS letter-audit problem I mentioned in that same Dec.12th blog. The 1099-Q sent by the 529 Plan I had for my grandchildren’s education had a total gross-distribution number, which was the total of the basis (money we originally invested), plus the earnings. The IRS wanted tax on the earnings. All I had to do was inform them that this was all used for qualified educational expenses. They’d never questioned this in years past; why this year? I’d been surprised that they never asked for “proof” of our expenditures, but they didn’t. By the way, this was the best “investment” we ever made! Zachary got his BS; Kaity got her BS and Master’s – and there’s money left over for the greats!
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Yes, Brad and I got our 2nd COVID vaccine shots. Although a few in our building felt lousy for a day or two, most had few or no side effects. I had only a sore arm, just like after a flu shot. Brad was fine; minutes after, he’d forgotten he even got the shot, the only benefit of short-term memory loss. And yes, you might recognize that person behind Brad, someone who decided to celebrate vaccine protection by becoming a gold-streaked redhead!
Several sharp-eyed friends on Facebook noticed Brad’s shirt was from the Cannery. Yes, he still has some casino logo clothes including a few nice jackets. But none of those satin beauties from the Westward Ho. Wish I had saved at least one!