There is a book out, I don't know the title and author off the top of my head, that was well reviewed in Card Player a few months ago. I'm going to get it myself before I pay my taxes this year, and I'll post about it when I do; keep an eye for new posts about it on my journal. I will also use a taxes tag for posts about taxes in the future.

In the meantime, what I can tell you is that I file a Schedule C, listing my profession as “Professional Poker Player”. Filing a Schedule C makes you a sole proprietorship of a business, and then you don't have to do the Schedule A crap that you mention (which, I agree, isn't right because you have to eat your standard deduction as part of your losses).

I am not a tax adviser and have no training in this sort of thing. However, I poured over the Schedule C business rules and I believe wholeheartedly that I am meeting the criteria as a sole proprietorship in my part-time poker work.