If I could just stick with quarter VP I'd be fine, but then there goes the Gold Card and suite at MSS. So, I end up with a couple of W2Gs each year and I still am able to deduct losses against wins for the Fed, but WI eliminated that deduction years ago. Now, those wins count towards income and if I win too much, I don't qualify for Affordable Care Act subsidy. I guess in reality, that means I'm playing for comps, but I like the Emerald status, Gold Card and the suite. And, I really do enjoy dollar VP more than quarter.
I know this was an old post for SandsFan, and probably for the 2013 tax year. As a Texas resident, I do file an out of state return for Louisiana to get back some of the 6% tax they take out of your W2G winnings. Mississippi takes out 3% and you can't file a return to get any of it.
Slot Players - A question regarding writing off losses I had a very good year (for me, not nearly as good a year as the guy who hit $100,000 at Pechanga) and have to figure out how to write off my losses. I am collecting win/loss statements from my casinos but was told that documentation-wise, they're pretty much useless. I have added up all of my travel expenses as well. Since all of my rooms were comped and most of my meals, what would I be missing? Would 14 W-2Gs be a red flag for an audit?
I have dealt with 40-60 W-2s in the past. No audit, yet. As to expenses, you could not use that anyways. Only a "professional" gamble can deduct expenses, and only when determined it is a business. The IRS has guidelines for what is required (logs of activity) and win/loss statements are not one of them. Though I have seen people here get an okay using them.
The IRS expects you have wins and losses when you gamble. You've had a good year! Do you have a tax person? For example, I'm not sure you can deduct meals. You can deduct all your gambling losses. All those lottery tickets you bought, all those all those times you lost playing craps late at night when you were drunk off your ass and don't remember. How close to zeroing out your losses are you based on your win/loss statements?
Casino win/loss statements are useless in an audit. You are supposed to be keeping a detailed gambling diary with dates, times, length of play of course the casino. Yea, right. I've never had W2gs totaling more than $20,000 in a single year and never have been called on my posted losses to offset that. 14 W2g, nice going.
I've heard this many times before. So many times that I assume it's true. But why would the IRS put more credence in a diary that the player creates than in a win/loss statement from a neutral 3rd party?
this is false You can OFFSET wins with losses...but you cannot deduct losses. For example, if you won $5,000 but lost $10,000...you can offset your win and claim zero net win, but you cannot claim a loss of $5,000
Thanks, I forgot about having to set up a self employed entity as "Professional Gambler" as an occupation in order to claim expenses. Same as when I declared "Professional Bowler" as an occupation. Had to declare winnings in 2 of 5 years or be subject to the "hobby rule". So, once I get all of my win/loss statements back from all the casinos, I'll figure out what I'm short (I'm actually ahead this year). Thanks for all the replies.
Quick question for the experts: I lost one W2 from a jackpot at Bally's. I'll be in Vegas next month, is it possible to just walk into Bally's and ask for a copy? And where should I go? Cashier, TR desk?
If you know the amount, you don't really need the form. The form is for your own records, you don't submit it with your taxes. You should be able to see the amount on your CET Win/Loss statement. There's probably something on the Total Rewards web site that tells you how to get a duplicate W2.
I got my first two W2-Gs last November. I checked my win/loss statement online and amount in there is way more than what I actually won after adding both W2s before taxes. This is going to screw me over on my taxes since what I report (the amounts in my W2G hard copies) isn't the same as what CET reports to the IRS. I called CET but they just tell me to wait until Feb 1 for the final win/loss statement but this has me worried.
The W2-G's are what get reported to the IRS by the casinos - not the win/loss statements. One other thing I want to point out since people seem to overlook it (or likely are making logs "after the fact"): All winnings are taxable....not just the ones that trigger a W2-G. If you are keeping a log....they are going to expect you to have more winnings than just a few big jackpots.... I have not been audited...but have had 15-20 W2-G's over the last half dozen years. I have a simple system....at the end of each gambling day (vegas or otherwise) I make notes of all my gambling stops/games and win loss at each session/game for that day...and I make sure to include the date. I then file all those daily "score" sheets in a designated drawer at home. At the end of the year (or perhaps earlier if I'm curious of the score) I build a simple excel file which shows all the entries and gives the win/loss total. This system also allows me to analyze my results by game....and over the years I've found that I should play more craps and less video poker! Good Luck!
If you have legitimate losses to offset those w2g's take them, no reason not to, you only need a record/diary if and when you are audited concerning your wins, and the chances of that are slim. Keep in mind in order to deduct/offset losses you need to be able to itemize.
Agreed - if someone has one $1200 W2-G the risk is very minimal. But for someone like the OP (who mentioned 14 W2-G's) a log is a must unless you want to risk a 5 figure tax bill later on.
Why are you going to be "screwed over"? Not all of your losses will show on your win/loss report. Many folks play lots of money and have losses that are not tracked to a card.
CET only reports your W2Gs to the IRS, it's the tax payers responsibility to show gains or losses above or below those amounts reported. The win-loss statement is more of a guideline. For those new to this topic, I merged it in with the sticky Beeejay wrote up some time ago. I would suggest reading the thread from the beginning as there is a LOT of good info in here about how to handle your taxes in regards to gambling.
So, you KNOW they are worthless how? Just pointing out that no matter what you have kept (logs, etc), you do not have first hand experience on what would keep the IRS from digging deeper. Or do you?
