Thanks again for this informative and immensely helpful response. One final issue I have complicating my tax return: I have some incidental grant money, part of a larger sum awarded to me by my public college that exceeded the cost of tuition & qualified expenses by ~3k. Having reported my gambling income so that I'm only taxed on the profit, should I expect the excess grant $ to be taxed also?
That is, if they can see that my gambling profit + grant $ is less than 12,550, will they still tax the 3k?
