Don,
So the Schedule C, self-employed option detailed in the link posted above by John doesn't work? The person I'm inquiring for has had net winnings of well over $150,000 online in the past 15 months. Most recently (yesterday) they won $30,000+ in an online tournament. They have or will be moving to Las Vegas soon. In part to play in live games as well as to take advantage of the State income tax benefits. It seems that any legitimate expenses incurred in generating that income could be used to offset the income, and not just as an itemized deduction, subject to the 2% floor and the standard deduction amount. If you're correct about being required to claim on page 1, and only deducting expenses and losses on Schedule A, it doesn't fit the traditional business taxation model. Thanks for the warning, and if you can, please elaborate on the rationale for not being able to use traditional tax reporting if gambling is a full-time business/occupation.