QUESTION ON W-2

[sam4343]

I hit RF on .50 in 2008 at Foxwood casino paid $2000 I DID NOT get a W-2 in the mail. I filled out win/loss statement with them they sent me, statement that i lost $1290 for 2008 how does this work inregards to IRS ALSO as fars i know have loss at MOHEGAN SUN casino in CONN. Thanks for responces! sam

[damule]

Sam,
 
    At the casino after you hit the RF, did they hand pay you the $2000 and take your personal info such as driver's license and SS#? If they did, they should have given you at least a hand written W-2 preliminary statement. If so, it's up to you to report this on your tax return as income even if you never got another one in the mail. You can report loses up to this much on your return, but make sure you have proof of loses such as a ledger, withdrawal slips, and casino year end statements. If, for some reason, the casino did not hand pay your $2000 in winnings and no slot attendant took your info, just roll with it as you never hit the RF. But I'm sure that's not the case as any JP over $1199.99 must be recorded and hand paid by all casinos in the US.
 
-Mule

[sam4343]

Damule, Yes i had to gave driver lic. SS# paid me $1500 check $500 cash. Where im slightly confused is my loses for the year is $1290, now before i hit that $2000RF i was down atleast $4000 to $6000 or more, hit some other RF.25 and smaller four of kind to bring my loses down to $1290 for the year.What im getting at is they took these wins against my loses and came up with $1290 lose for the year,  So when it comes to the IRS i have to take this $1290 away from the $2000 win, when the casino allready did that and came up with lose($1290) for the year.I know confusing!! Yes. Also had $615 win on state lottery. So what im think wife& me going to do is take her loses and mine against these win's so atleast IRS is happy don't won't them unhappy.LOL Thanks for responding, Damule

[shadowman]

As long as you had a net loss for the year then you can subtract everything you claim on form 1040. This is done on Sch. A. Most gamblers would list $2000 on form 1040 and a $2000 loss on Sch. A.

If you received a tax form for the $615, then $2615 on form 1040 and the same on Sch. A.
 
However, keep in mind that some IRS offices do not accept casino win/loss statements. According to the law you should have a personal record of every trip to the casino and your results for that trip. Clearly, you could "create" one from a detailed win/loss statement if your casino provides one.
 
The entire tax system related to gambling is a mess. It's an embarrassment to our government, but I guess since it works to their advantage we won't see any changes too soon.
 
*** disclaimer:  I am not a tax profressional. Use at your own risk. 

[sam4343]

Hello, shadowman, I do write down on the calander(date's) when we went to casino and if i lost or won and the amount lose/win on that date, have also cashed a few checks when i was there, more checks this year2009 than last year. I get what your saying net losses and the 1040& Sch.a and thats what we will do.  I AGREE State & Federal goverments kinda messed up they want start them up(casino's) in State's so they can rasies more money to buy/spend more and if you win federal gov. gets part of that. But i guess that beats the alternative if there were no casino's and no lotteries,scratch tickets, no gambliing than they would raise property taxes times 3 and tax everything that dosnt have tax on it now. The way were going the future generation will have these taxes sad to say, and much more. Dosnt take a rocket scientest to figure this out just take out a calculator and do the math. Because the states that have casino's are still in finiacial trouble. Thanks for writing shadowman, LOL not a tax profressional.

[shadowman]

The tax law is worse than it may appear at first. By separating the wins from the losses the IRS inflates a taxpayer's AGI. Many deductions are limited to a percentage of the AGI. For example, you may get a smaller medical deduction because of this approach. Not to mention that one must itemize to deduct gambling losses and that might cost more than taking a standard deduction.



 
In addition, if a person has ever gambled and won then they are supposed to file this on 1040. Doesn't matter if they lost 10x that the next trip. Therefore, there are probably millions of part time gamblers out there who are in violation of the law and have no idea this is the case.
 

[gr8bowlr]

Okay Sam, this is how you do it.  First you have to claim the 2 grand on the front page of form 1040 under other income, or something like that.  Then on schedule A at the bottom there is a line for other deductions.  You put the 2 grand on that line and it is a wash.  Therefore you pay no taxes on it.  But like others have said you can write off your w2g claims up to what the amount of the forms said you won.  The IRS really dosen't bother with things like this unless its an ungodly amount of money.  Hope that helps you.

[mightwin]

Here's a different tax question.  In New Mexico (indian casinos), when you win over $1200 they ask if you would like the taxes withheld.  I have never been asked in Las Vegas, Nevada.  Is that option available in NV?  I'm just wondering in case of a dream win....
Thank in advance for information.

[sam4343]

shadowman, I get what saying i been running couple(poor)lol business for 17years but $2000 win biggest all others were 1000 the last 9years i have taken medical expences because of out of pocket(cash)pharmacy,doctor,etc.etc.I hear what your saying about gamblers that only play occasinaly and win. Thanks. gr8bowlr yes i think im in the small win bracket,lol wish i was the big win bracket powerball200,000,000 we can dream. thanks sam

[shadowman]

Lot's of casinos in LV so there may be some that will take out taxes. From what I've heard I think they might ask if the win is over $5000. Otherwise you can ask and they may or may not do it. I've never had a LV casino ask if I wanted them to take anything out.



 
OTOH, I've never had anything taken out even in other states where they do ask. I do estimated taxes to cover my expected wins.