Trusted Online CasinosInternet Gambling Best Bonus For Online CasinosOnline Casino Reviews

Casino Reviews

Roxy Palace
Spin Palace
Ruby Fourtune
Casino DelRio
First Web Casino

King Neptunes
Black Widow
The Gaming Club
Lucky Nugget
Home Casino
Jackpot City Casino
Super Slots
All Poker Casino
Silver Dollar
Caribbean Gold
Aces High
Showdown Casino
River Belle
Grand Banks
Orbital Casino
River Nile
Capital Casino
Be The Dealer
Piggs Peak

The Taxman Cometh

Dear Mark: I have a question regarding winnings from a slot tournament. The casino reported the tournament winnings on a 1099 MISC ($15,000). Can an equal amount of gambling losses be shown to offset the winnings from gross income on Federal 1040; like it can when you receive a W2G form? Sandra D.

The casino's decision, Sandra, to issue a Form W2-G, Certain Gambling Winnings, or a Form 1099-Misc., Miscellaneous Income, does not affect the nature of the winnings or the deductibility of losses for tax purposes.

Back in 1977 the IRS introduced the W2-G (statement of gambling winnings) to replace form 1099 for reporting gambling wins as well as income tax withheld. Presumably the reason you received a 1099-MISC instead was because your win was considered a “prize” worth $600 or more, and not winnings from a wager. Still, just so long as the value of the prize received was considered an inducement to gamble, it could be rightfully represented as gains from gambling, and offset by gambling losses

Gambling winnings are reported on tax form 1040 on the Other Income Line. Reportable gambling winnings can come from lotteries, bingo, raffles, horse and dog racing, online poker, casino games, and slot tournament wins. Luckily, Sandra, you can offset the taxes by reporting your losses if you keep impeccable records.

As a loss-claimant, you must substantiate your loss claims with a flawlessly documented, descriptive gambling diary. For starters, your gambling diary should have date and type of gambling event, name and location of casino, poker room, racetrack, etc., table or slot machine number where the gambling took place and total dollar amount lost. You are also permitted to use airline tickets, bank withdrawal statements made at the casino, canceled checks, credit-card cash advances, bona fide (see below) losing betting stubs, and yearly statements of your wins and losses from the casino as additional collaboration.

Also, Sandra, you can only offset your wins by loses if you itemize rather than take the standard deduction on your tax return. Gambling losses can be used only to counterbalance gambling winnings during that same tax period. They cannot be carried forward or back to any other tax year.

Remember, Sandra, the burden of proof falls on your shoulders, so the better your records, the better your chances of surviving an audit. And don’t emulate a misinformed friend of mine who went dumpster-diving at the racetrack to collect over $10,000 worth of losing tickets over one weekend, and then tried to peddle them off as his own personal loses. The IRS caught a strong whiff of that horse manure, and his legal fees ended up far outweighing his tax liability, penalties and interest.

Final caveat: Being that this subject matter is well above my pay grade, I would still recommend that you consult your CPA or accountant to get the current tax code changes regarding gambling and taxation.


Email to a friend
More Columns By Mark Pilarski
Have a question? Ask Mark pilarski@markpilarski.com

Related Articles

Blackjack Strategy Cards In Casinos
How to play the hand you were dealt. Using a blackjack strategy card allows you to go nearly even up against the house.

Blackjack When To Split Your Cards
Here are seven easy basic strategy rules that apply to splitting pairs.

Black Jack Strategy Doubling Down
Doubling down is an offensive strategy that allows you to earn more of a profit than you'd rake in just by hitting the hand.

Super Fun 21 Rules How To Play
Here are some of Super's specifics and rule changes compared against those of commonplace blackjack.

Good Casinos Home


 



Take A Tour
 

Take A tour of the casinos with screen shots, reviews, bonus offers and more

Take The Tour Now

 
 

subscribe
unsubscribe


Black Jack School
Black Jack Info
Let It Ride Poker
Pai Gow Poker
Caribbean stud Poker
Video Poker Tips
Craps Tips
Slot Tips
Money Management


Joke Of The Day
 

 
 

 

Good Online Casinos Home Casino Games Play for fun 900 Pay Casinos Golf news Webmasters

Site Map

Play VideoPoker Free NETeller Casinos Boxing news Gaming Lingo
Related sites[1][2][3] Play Slots Free PrePaid ATM Casinos Poker Tips Online Sports Lingo
Caribbean stud Poker Rules Play Roulette Free ACH Casinos Gambling Tips Tricks Gaming Rules
Casino Affiliate Programs Play Craps Free Citadel Casinos Craps Tips Progressive Online slots
Gambling Tips Tricks Advice Online Gambling Whats New Online Casinos Blackjack Tips Play BlackJack Free
Free Slot Games For Prizes Jackpot wins at online casinos Casino Reviews New Online Casinos Online Black Jack
Flash No Download Casinos Casinos By Deposit Method Poker Tips And Tricks Gambling Jokes Black Jack School
Online Casinos Best Bonus Free Cash FirePay Casinos Football News Online Casino Tour Blackjack Card Counting