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My wife and myself have hit for 5 W-2G's so far this year totaling about $12,500, and we are ahead about $2500 this year.
If we were to finish the year like this, I know we have to report the $12,500 as taxable income. Would we then show $10,000 as an itemized deduction?, (the difference between our W-G2's and where we actually stand, $2500 ahead). This should make it advantageous for us to itemize as we have a few other deductions to get us over the threshold vs standard deduction.
Also, if we end up down for the year we can itemize up to the total of the W-2G's. Am I thinking this out right?
In previous years we have not itemized, but we only had 1 or 2 W-2G's, so we paid fed. tax on our winnings even though we were actually down for the year. The amount of our losses up to the taxable winnings were not enough to allow us to itemize.
Tax/Withholding question
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BillyJoe
- Video Poker Master
- Posts: 3198
- Joined: Sat Aug 23, 2008 2:00 pm
My wife and myself have hit for 5 W-2G's so far this year totaling about $12,500, and we are ahead about $2500 this year.
If we were to finish the year like this, I know we have to report the $12,500 as taxable income. Would we then show $10,000 as an itemized deduction?, (the difference between our W-G2's and where we actually stand, $2500 ahead). This should make it advantageous for us to itemize as we have a few other deductions to get us over the threshold vs standard deduction.
Also, if we end up down for the year we can itemize up to the total of the W-2G's. Am I thinking this out right?
Yes and no, Smooth. By virtue of the W2Gs that you received from the casino, the IRS knows about the $12,500 winnings this year that were reported to them by the casino. But you are responsible for reporting ALL winnings on your tax return, even those that did not garnish a W2G. You can then, as an itemized deduction, claim All your gambling losses, up to the amount that you claimed as winnings. That is how the tax code reads.
In reality, most people just claim as winnings the amount that the IRS knows about, namely the amount of the total W2Gs for the year. On the loss side, you are entitled to claim all losses, even from table games. Remember, though, that if audited, you will have to be able to substantiate all your losses to the IRS.
The casino's yearly Win/Loss Report is usually enough for the IRS, but it depends on the IRS auditor. Even if that report shows a net win for the year, you can still claim additional losses from gambling, up to the amount of your yearly winnings, not reflected fully in that report, such as table games.
I casino play quite a bit, and over the years, I have had several IRS audits. In the area of gambling wins/losses, I have never had an issue with the IRS accepting my documentation of play activity and losses to substantiate my tax deductions.
Remember that all gambling winnings add to your AGI, so other tax deductions may be effected.
I hope that helped. Good luck.
If we were to finish the year like this, I know we have to report the $12,500 as taxable income. Would we then show $10,000 as an itemized deduction?, (the difference between our W-G2's and where we actually stand, $2500 ahead). This should make it advantageous for us to itemize as we have a few other deductions to get us over the threshold vs standard deduction.
Also, if we end up down for the year we can itemize up to the total of the W-2G's. Am I thinking this out right?
Yes and no, Smooth. By virtue of the W2Gs that you received from the casino, the IRS knows about the $12,500 winnings this year that were reported to them by the casino. But you are responsible for reporting ALL winnings on your tax return, even those that did not garnish a W2G. You can then, as an itemized deduction, claim All your gambling losses, up to the amount that you claimed as winnings. That is how the tax code reads.
In reality, most people just claim as winnings the amount that the IRS knows about, namely the amount of the total W2Gs for the year. On the loss side, you are entitled to claim all losses, even from table games. Remember, though, that if audited, you will have to be able to substantiate all your losses to the IRS.
The casino's yearly Win/Loss Report is usually enough for the IRS, but it depends on the IRS auditor. Even if that report shows a net win for the year, you can still claim additional losses from gambling, up to the amount of your yearly winnings, not reflected fully in that report, such as table games.
I casino play quite a bit, and over the years, I have had several IRS audits. In the area of gambling wins/losses, I have never had an issue with the IRS accepting my documentation of play activity and losses to substantiate my tax deductions.
Remember that all gambling winnings add to your AGI, so other tax deductions may be effected.
I hope that helped. Good luck.
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FloridaPhil
- Video Poker Master
- Posts: 6229
- Joined: Sat Jul 19, 2008 11:28 am
In 2008, my wife and I had about $14K worth of W2Gs. We always itemize, so it didn't change anything as far as tax preparation was concerned. Our accountant added the income to our earnings and deducted the losses on our return. That was also the year I began keeping records. I carry a tiny note pad with me and write down the date and place of each casino trip along with how much money I take, the numbers of the machines I play, who is with me, when I leave, when I return and the net for the day. I have never been audited for any gambling issue, but I am ready if it happens. Incidentally, when I actually found out how much money I was paying to play I immediately started working on my single coin strategy. You really don't want to know your number, it may shock you...
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Lucky Larry
- Video Poker Master
- Posts: 2693
- Joined: Sat Dec 13, 2008 7:35 pm
<DIV style="MARGIN: 0in 0in 10pt">In 2008, my wife and I had about $14K worth of W2Gs. We always itemize, so it didn't change anything as far as tax preparation was concerned. Our accountant added the income to our earnings and deducted the losses on our return. That was also the year I began keeping records. I carry a tiny note pad with me and write down the date and place of each casino trip along with how much money I take, the numbers of the machines I play, who is with me, when I leave, when I return and the net for the day. I have never been audited for any gambling issue, but I am ready if it happens. Incidentally, when I actually found out how much money I was paying to play I immediately started working on my single coin strategy. You really don't want to know your number, it may shock you...
We not only get our Win/Loss Statements we ask for a Coin-In/Coin-Out statement. Since we're basically, 5¢-25¢ players i almost had to call the EMT when Sweet C found out her CI/CO was over $900K. We use the CI/CO to tell us of how much we've actually played. If we keep our CI/CO around the same average amount each year it gives us an indication of our actual play. Since this report usually gives our total number of hours played it also helps us regulate the days of play. Works well when you are talking to hosts about comps. or when you move to a new casino.
We not only get our Win/Loss Statements we ask for a Coin-In/Coin-Out statement. Since we're basically, 5¢-25¢ players i almost had to call the EMT when Sweet C found out her CI/CO was over $900K. We use the CI/CO to tell us of how much we've actually played. If we keep our CI/CO around the same average amount each year it gives us an indication of our actual play. Since this report usually gives our total number of hours played it also helps us regulate the days of play. Works well when you are talking to hosts about comps. or when you move to a new casino.
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BillyJoe
- Video Poker Master
- Posts: 3198
- Joined: Sat Aug 23, 2008 2:00 pm
[QUOTE=FloridaPhil] <DIV style="MARGIN: 0in 0in 10pt"> Incidentally, when I actually found out how much money I was paying to play I immediately started working on my single coin strategy. You really don't want to know your number, it may shock you...
We not only get our Win/Loss Statements we ask for a Coin-In/Coin-Out statement. Since we're basically, 5¢-25¢ players i almost had to call the EMT when Sweet C found out her CI/CO was over $900K. We use the CI/CO to tell us of how much we've actually played. If we keep our CI/CO around the same average amount each year it gives us an indication of our actual play. Since this report usually gives our total number of hours played it also helps us regulate the days of play. Works well when you are talking to hosts about comps. or when you move to a new casino.[/QUOTE]
Being a 7Star with Caesars/Harrahs, and a NOIR with MGM Int'l, I already know how much I play each year..... PLENTY
We not only get our Win/Loss Statements we ask for a Coin-In/Coin-Out statement. Since we're basically, 5¢-25¢ players i almost had to call the EMT when Sweet C found out her CI/CO was over $900K. We use the CI/CO to tell us of how much we've actually played. If we keep our CI/CO around the same average amount each year it gives us an indication of our actual play. Since this report usually gives our total number of hours played it also helps us regulate the days of play. Works well when you are talking to hosts about comps. or when you move to a new casino.[/QUOTE]
Being a 7Star with Caesars/Harrahs, and a NOIR with MGM Int'l, I already know how much I play each year..... PLENTY
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Vman96
- Video Poker Master
- Posts: 3298
- Joined: Tue Jul 26, 2011 12:49 am
[QUOTE=Lucky Larry] [QUOTE=FloridaPhil] <DIV style="MARGIN: 0in 0in 10pt"> Incidentally, when I actually found out how much money I was paying to play I immediately started working on my single coin strategy. You really don't want to know your number, it may shock you...
We not only get our Win/Loss Statements we ask for a Coin-In/Coin-Out statement. Since we're basically, 5¢-25¢ players i almost had to call the EMT when Sweet C found out her CI/CO was over $900K. We use the CI/CO to tell us of how much we've actually played. If we keep our CI/CO around the same average amount each year it gives us an indication of our actual play. Since this report usually gives our total number of hours played it also helps us regulate the days of play. Works well when you are talking to hosts about comps. or when you move to a new casino.[/QUOTE]
Being a 7Star with Caesars/Harrahs, and a NOIR with MGM Int'l, I already know how much I play each year..... PLENTY [/QUOTE]
Looks like SweetC could make 7Star too with the right amount of sessions if she played at CET exclusively. But then she would have to play CET paytables the whole time. Which are particularly horrible there for 50/100 play games usually.
We not only get our Win/Loss Statements we ask for a Coin-In/Coin-Out statement. Since we're basically, 5¢-25¢ players i almost had to call the EMT when Sweet C found out her CI/CO was over $900K. We use the CI/CO to tell us of how much we've actually played. If we keep our CI/CO around the same average amount each year it gives us an indication of our actual play. Since this report usually gives our total number of hours played it also helps us regulate the days of play. Works well when you are talking to hosts about comps. or when you move to a new casino.[/QUOTE]
Being a 7Star with Caesars/Harrahs, and a NOIR with MGM Int'l, I already know how much I play each year..... PLENTY [/QUOTE]
Looks like SweetC could make 7Star too with the right amount of sessions if she played at CET exclusively. But then she would have to play CET paytables the whole time. Which are particularly horrible there for 50/100 play games usually.
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chattycattty
- VP Veteran
- Posts: 726
- Joined: Fri May 10, 2013 7:51 pm
Depends on where you play. Bossier City which is our home property for CET has a number of VP machines in the 98 to 99 percent range. It is also not that far away from Lucky Larry and with their luck they could make 7 star next year with no problem.
They could also travel to Tahoe, Atlantic City, Laughlin/Vegas and other CET properties for free like we do. We have not paid for a room, a meal, a concert, a limo, or an airfare in over 4 years. It really is a great deal if you know how to work the system.
They could also travel to Tahoe, Atlantic City, Laughlin/Vegas and other CET properties for free like we do. We have not paid for a room, a meal, a concert, a limo, or an airfare in over 4 years. It really is a great deal if you know how to work the system.
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BillyJoe
- Video Poker Master
- Posts: 3198
- Joined: Sat Aug 23, 2008 2:00 pm
Depends on where you play. Bossier City which is our home property for CET has a number of VP machines in the 98 to 99 percent range. It is also not that far away from Lucky Larry and with their luck they could make 7 star next year with no problem.
They could also travel to Tahoe, Atlantic City, Laughlin/Vegas and other CET properties for free like we do. We have not paid for a room, a meal, a concert, a limo, or an airfare in over 4 years. It really is a great deal if you know how to work the system.
I agree, Chatty. For recreational players like us, it is all about the comps. It is tough to win at gaming with any consistency, so the comps help make it an enjoyable trip - win or lose.
They could also travel to Tahoe, Atlantic City, Laughlin/Vegas and other CET properties for free like we do. We have not paid for a room, a meal, a concert, a limo, or an airfare in over 4 years. It really is a great deal if you know how to work the system.
I agree, Chatty. For recreational players like us, it is all about the comps. It is tough to win at gaming with any consistency, so the comps help make it an enjoyable trip - win or lose.
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smooth03
- Forum Rookie
- Posts: 18
- Joined: Sat Jul 12, 2014 11:30 am
Thank you all for your responses, I understand the tax details better now.
We are in Cherokee now and my wife hit a beautiful jackpot last night (got a check), I will post a pretty picture when we get home. Who knows maybe several more as we are staying 2 more days.
We are in Cherokee now and my wife hit a beautiful jackpot last night (got a check), I will post a pretty picture when we get home. Who knows maybe several more as we are staying 2 more days.
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olds442jetaway
- Video Poker Master
- Posts: 10754
- Joined: Tue Aug 21, 2007 9:08 pm
Just curious guys and gals. If I were able to travel a little more how do you think I would make out comp wise at some of the cet properties ? My coin in is over 2m in a year, but that is also over the course of 100 trips or so and all on vp so maybe it is not that big of a deal. No urgency for a response. Just curious since at some point my situation will change and I should be able to travel a little more.
