Free play doesnt last forever

Quote: ChumpChange

Kiosk game free play seem to be different than redeeming a mailer free play at the kiosk. It's a distinction I'm failing to notice. Shouldn't free play be free play?

5. PRIZES: During the Promotional Day, the Member must visit a promotional kiosk to play a bonus game for a prize valued between $15 and $10,000 in free slot play, free table play (in the form of promotional chips) or cash, in Encore Boston Harbor’s sole discretion. Maximum of one (1) bonus prize per Member. Free slot play valued up to $99 is valid until 5:59 a.m., one (1) calendar day after issuance. Free slot play valued at $100 and above is available for thirty (30) days after the date of issuance. No substitution of prize or transfer of prize to others or request for a cash equivalent is permitted. Members shall be solely responsible for any and all prize-related expenses and fees, including without limitation, any and all federal, state and/or local taxes (including sales tax), and winners shall be responsible, where applicable, to complete and execute an IRS Form 1099 and release and waiver liability form in order to receive any prize.
https://www.encorebostonharbor.com/promotions/terms-and-conditions

So you win $600 or more of free play annually on kiosk games, you might get a 1099 form at the end of the year. But redeem $600 or more of free play at the kiosk because of mailers, you won't get a 1099. How would they know the difference?

I'm more of the opinion that I should keep track of all the free play I've won then deduct it from my overall winnings, rather than keeping track of my cash-outs from free play alone. Example: I won $1,800 in free play over the year from free play mailer redeeming, and $3,200 of free play from the kiosk games, I'd deduct $5,000 from my overall winnings because of the free play exemption. However, if kiosk game free play isn't deductible, I can only deduct $1,800 of mailer free play and cannot deduct the $3,200 of kiosk game free play, and I'd get a 1099 for that at some point. So I've got to make a notation of whether free play was from mailer redemption or whether it was from a kiosk game, but that came on a mailer also!

Now there's gifts that I have absolutely no use for.
4. GIFTS: During the pick-up date and hours designated in Section 3 above, Eligible Members may pick-up one (1) Macy’s Promotional Gift Card valued at $200.000.
link to original post

They can definitely keep track of the different types of Freeplay.

The kiosk game mentioned low amounts are only good for the day, over $100 is good for thirty days so that sounds like you truly are winning the Freeplay and it doesn't have to do with your prior play. That is it is not based on your Theo.

So again if it's won, it's taxable, if it's earned through purchase then it's not.

https://www.choctawcasinos.com/promotions/destined-to-drive/
Free Play, Cash, or Car Drawings!

PRIZES
Drawings on Saturday, February 5, 12, 19

Free Play 7pm $1,500.00

Free Play 8pm $1,500.00

Free Play 9pm $1,500.00

Cash 10pm $2,000.00

Cash 11pm $2,500.00

Cash 12am $10,000.00



Drawings on Friday, February 25 and Saturday, February 26

Free Play 7pm $1,500.00

Free Play 8pm $1,500.00

Free Play 9pm $1,500.00

Cash 10pm $2,000.00

Cash 11pm $2,500.00

Prize 12am New Ford Mustang

RULES
During the drawings, guests will have three (3) minutes to claim their prize. After the three (3) minutes has lapsed, a new name will be drawn until a winner has claimed the prize. You must have a valid Driver’s License or other state or federally issued photo ID to win.

To keep things fair and allow as many people as possible to participate, players are only permitted to win once each promotion date. All guests are eligible for the 12am drawing the following day. You must be at least 18 years of age or older and a member of the Choctaw Rewards Club to participate. If you are not a member, you can join the club at the same time you register for the tournament. It’s free and easy, just present your valid Driver License or other state or federally issued photo ID at a Choctaw Rewards Club and one of our Associates will create your card and explain how to use it.

LEGAL STUFF
You must have a valid Driver License or other state or federally issued photo ID in order to win. All guests who are self-banned or casino-banned are ineligible to earn entries or claim prizes for this promotion. The following are prohibited from participating in any promotional activity: associates of Choctaw Casinos; associates of the Choctaw Nation deemed ineligible as set forth by any of the Choctaw Nation’s policies, regulations, or laws; anyone who is currently banned from any of the Choctaw Nation’s gaming facilities; anyone who is restricted from participating in the Rewards Club; and/or any promotional sponsors. All promotional items forfeited by casino-banned or self-banned patrons must be awarded to an eligible casino guest in a manner approved by Choctaw Nation Gaming Commission.

All applicable taxes relating to the winning of any of the prizes is the sole responsibility of the participant. Participants with cumulative winnings over $600 for the year will receive a 1099. Social Security number is required, per IRS, for winnings equal to or greater than $100 (refer to http://www.irs.gov./ on the IRS website).

Any guest who attempts to use a Choctaw Casino Rewards Club Card other than their own will disqualify both parties. Choctaw Casino is not responsible for lost, stolen or misuse of Choctaw Casino Rewards Club Cards. Choctaw Casino Management reserves the right to void any registration and/or change, cancel, or modify this promotion without notice to the public. Any dispute or situation not covered by the above rules will be resolved by Choctaw Casino Management in a manner deemed by them to be the fairest to all concerned, and the decision shall be final and binding on all participants. The interpretation of the rules, eligibility, etc. is the sole discretion of the Choctaw Casino and all decisions are final. Downtime due to system maintenance or outage may limit promotional participation, promotions will resume upon restoration of systems and/or services. Prize(s) and entries into this promotion are non-transferable. Gambling problem? Call 800.522.4700.

Quote: MDawg

I said "and then argue that it's okay to decline to report any of it" - which is what you're doing here, no? isn't that what you are arguing?

In any case, you're saying that it is okay to not pay any tax on said free play because no tax is due. You want to spend pages arguing a point and then get upset because someone points out that this is what you are saying?

I just started reading this but I would assume and postulate that free play is non-taxable while any winnings from the free play would be taxable.

One particular casino Ocean in AC takes the full value of the freeway you download regardless of what you win or lose and applies it to your Win Lose as a win. I’m pretty sure this is illegal but it I’ve not really had the time to look into it fully. I know a number of people have complained about this. It wouldn’t be surprising to me if they were doing some shady accounting. After all we are talking about a casino who de promos and steals comp of people who only ever played electronic roulette and the electronic big 6 wheel. Image telling a customer who only plays these games that they are advantage players then using that to justify theft and expulsion from the club. I’m not mad tho they have no chance of winning lol

This is correct at least this is what my accountant who specializes in gambling told me.

Quote: DRich

Quote: MDawg

I said "and then argue that it's okay to decline to report any of it" - which is what you're doing here, no? isn't that what you are arguing?

In any case, you're saying that it is okay to not pay any tax on said free play because no tax is due. You want to spend pages arguing a point and then get upset because someone points out that this is what you are saying?

I just started reading this but I would assume and postulate that free play is non-taxable while any winnings from the free play would be taxable.
link to original post

This is correct according to my accountant who specializes in gambling .

Well, I'll disabuse myself of the notion that there's an exemption for the total amount of free play given to me. I'll just make an entry in my diary that I bought in for $0.00 and cashed out $40.00 for a $40.00 profit for the VP session of free play, which is what I've been doing. If I added $20 cash to my $40 free play, I'd write I bought in for $20 and cashed out at $60 (if I broke even for the session including the $40 free play).

Freeplay is worthless now these hypothetical discussions are great

One year maybe recently or not that long ago I had a very unique tax problem for my accountant regarding Free play. What happens if the casino issues you $500 in freeplay but you have a method to make that 1k in freeplay everyday maybe multiple times a day. He decided the best course of action here was to treat the original $500 as he normally does, and the rest as taxable gambling income. He then asked me teach him about slots and promotions.

Quote: Seedvalue

One year maybe recently or not that long ago I had a very unique tax problem for my accountant regarding Free play. What happens if the casino issues you $500 in freeplay but you have a method to make that 1k in freeplay everyday maybe multiple times a day. He decided the best course of action here was to treat the original $500 as he normally does, and the rest as taxable gambling income. He then asked me teach him about slots and promotions.
link to original post

To my understanding your accountant handled it properly.

Slow day today

2 x $200 first stop
4 x $350 second stop
2 x $300 third stop
2 x $250 forth stop
2 x $200 fifth stop
2 x $400 sixth stop
1 x $750 last stop

Might play along with Alan on slow month in a new area.

Quote: Seedvalue

Slow day today

2 x $200 first stop
4 x $350 second stop
2 x $300 third stop
2 x $250 forth stop
2 x $200 fifth stop
2 x $400 sixth stop
1 x $750 last stop

Might play along with Alan on slow month in a new area.
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Three times a week same schedule I may stay in this area. Clean air

Quote: Seedvalue

One year maybe recently or not that long ago I had a very unique tax problem for my accountant regarding Free play. What happens if the casino issues you $500 in freeplay but you have a method to make that 1k in freeplay everyday maybe multiple times a day. He decided the best course of action here was to treat the original $500 as he normally does, and the rest as taxable gambling income. He then asked me teach him about slots and promotions.
link to original post

So just to clarify, was his take that the 1k in freeplay derived from the original $500 freeplay was taxable (i.e. for a single instance, $500 non taxable, and $1,000 taxable)? Thanks.

Quote: MDawg

i.e. What's the difference? If you get your promo chips from rated play or you get them from winning a tournament. In either case you will get no W-2G but if you are able to turn these promo chips into cash, then that cash will be considered income from the casino - as applied against any loss at the casino that same year.

What are you trying to say, that promo chips from rated play are somehow placed in a different category from promo chips from a tournament?
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A basic question: When anyone wins whatever from any casino and the casino does NOT issue a W2-G, how does the IRS know about one's winnings especially if the individual does NOT voluntarily inform the IRS?

tuttigym

Quote: tuttigym

Quote: MDawg

i.e. What's the difference? If you get your promo chips from rated play or you get them from winning a tournament. In either case you will get no W-2G but if you are able to turn these promo chips into cash, then that cash will be considered income from the casino - as applied against any loss at the casino that same year.

What are you trying to say, that promo chips from rated play are somehow placed in a different category from promo chips from a tournament?
link to original post

A basic question: When anyone wins whatever from any casino and the casino does NOT issue a W2-G, how does the IRS know about one's winnings especially if the individual does NOT voluntarily inform the IRS?

tuttigym
link to original post

The IRS does not know. That does not mean legally the income is not taxable.

Quote: darkoz

If you won cash proceeds from the rebate freeplay or promo chips that's not taxable. If you guys have been paying taxes on that then you have been overpaying.

Quote: AlanMendelson

Are you trying to tell me that if I took my $3 of cashback money and played it in a Megabucks machine and won $12-million (the current jackpot) it would NOT be taxable?

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Quote: darkoz

Under current IRS guidelines that's correct.

What would prevent the casino from issuing a W2-G for that extraordinary win? My guess is that the casino would issue a W2-G for tax purposes to a.) cover their butts and b.) to help their bottom tax line.

tuttigym

Quote: tuttigym

A basic question: When anyone wins whatever from any casino and the casino does NOT issue a W2-G, how does the IRS know about one's winnings especially if the individual does NOT voluntarily inform the IRS?

tuttigym
link to original post

I'll answer that because I reported about the IRS for decades as a TV reporter and now I'm writing for the tax help firm TaxReliefInfo.org

The IRS won't know about non W2G wins until they look at your tax return for other issues such as underpayments or for fraud. They might look at your bank deposits, your standard of living, your bank transactions.

The IRS audit rate is less than 1% and the audit rate actually decreases for those who earn more.

It's a voluntary tax system.

I'm going to ask you: do you honestly have a taxable profit from casino pays... especially pays that don't require a W2G ??

Of course all of the APs here should be paying taxes on their wins. Are they cheating on their taxes or really not winning?

Quote: tuttigym

A basic question: When anyone wins whatever from any casino and the casino does NOT issue a W2-G, how does the IRS know about one's winnings especially if the individual does NOT voluntarily inform the IRS?

tuttigym
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Quote: UP84

The IRS does not know. That does not mean legally the income is not taxable.
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Exactly and therefore, my guess, there are billions of untaxed $$$'s because a.) the general ignorance of the gambling public who do not know and are not informed by the casino that their winnings are taxable, and b.) those who know their winnings are taxable but willingly do not inform the IRS because since there is no documentation; there is no taxable event.

I understand that winnings are taxable, but like freelance self-employed individuals that perform services where such income is not documented from their clients, no documentation, no taxable event.

tuttigym

Quote: tuttigym

Quote: darkoz

If you won cash proceeds from the rebate freeplay or promo chips that's not taxable. If you guys have been paying taxes on that then you have been overpaying.

Quote: AlanMendelson

Are you trying to tell me that if I took my $3 of cashback money and played it in a Megabucks machine and won $12-million (the current jackpot) it would NOT be taxable?

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Quote: darkoz

Under current IRS guidelines that's correct.

What would prevent the casino from issuing a W2-G for that extraordinary win? My guess is that the casino would issue a W2-G for tax purposes to a.) cover their butts and b.) to help their bottom tax line.

tuttigym
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Hello, Tutti.

To answer

First, I never claimed they wouldn't issue a W2-G. Of course they would. It would be up to you at end of year to make your claims as to taxable income

Second, I posted after further research that the IRS handling is that it's a rebate on purchases and not taxable but only to the limit of the purchase

Let's take a Lamborghini example.

You purchase a $100,000 Lamborghini and get a $20,000 rebate check in the mail. You don't claim the $20,000 on your taxes, correct?

Now let's say you flip the Lamborghini for $90,000. Combined with the $20,000 rebate you profited $10,000. That's your income.

So for Seedvalue example above his accountant handled it correct. Seedvalue lost $500, then turned $1000 into $1000 so that first $500 is a rebate and not taxable.

In other words Freeplay from past rating (the purchase) is considered a non-taxable rebate up to the amount of the original purchase. Any amount above that is considered profit.

As for Alan's $12 million jackpot scenario, the amount of the freeplay isn't the question. It's the amount of his losses (purchase). If he was getting Freeplay based on a million dollars lost and then won $12 million on the Freeplay, the first million would be considered a non-taxable rebate.

Also, Freeplay that isn't based on past performance (tournament Freeplay and drawings for example) isn100% taxable

It all makes sense when one thinks about it but posters always want to give ridiculous scenarios to make a point.

I doubt there are billions. I dont think people really have net wins. Not even those who claim to be APs.

Quote: AlanMendelson

Of course all of the APs here should be paying taxes on their wins. Are they cheating on their taxes or really not winning?

This is what really irks me. It's pervasive this theorem that Advantage Players must either be lying or tax cheats.

Like literally where is the third option? Where is AP's who win and actually pay their taxes?

Why can't you imagine someone who pays their taxes?

Quote: AlanMendelson

I doubt there are billions. I dont think people really have net wins. Not even those who claim to be APs.
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This gets my vote for most incorrect post of the year!

It's funny because even the Wizard wholeheartedly agrees that advantage play is possible and can churn out a profit

But what authority does the Wizard have, after all?

Quote: darkoz

Quote: AlanMendelson

I doubt there are billions. I dont think people really have net wins. Not even those who claim to be APs.
link to original post

This gets my vote for most incorrect post of the year!

It's funny because even the Wizard wholeheartedly agrees that advantage play is possible and can churn out a profit

But what authority does the Wizard have, after all?
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No, but the overall idea Alan alludes to is correct. Over the the entire US population net player income from gaming is negative.

Quote: darkoz

Quote: AlanMendelson

I doubt there are billions. I dont think people really have net wins. Not even those who claim to be APs.
link to original post

This gets my vote for most incorrect post of the year!

It's funny because even the Wizard wholeheartedly agrees that advantage play is possible and can churn out a profit

But what authority does the Wizard have, after all?
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Darkoz I give you credit for having an enterprise.

Do you really want to vouch for every poster who comes to online forums claiming to be a profitable AP?

I think not.

Quote: Seedvalue

Might play along with Alan on slow month in a new area.

Alan, you'd be better off avoiding meeting up with this "character" in real life, given his unmeasured posts elsewhere which include threats of beating people to death or near death and if he loses to then take the fight to their families.

Threats such as that come from the loosest of loose cannons.

I'm not trying to import drama, I am however attempting to give a timely "Heads up, watch your back."

Quote: MrV

Quote: Seedvalue

Might play along with Alan on slow month in a new area.

Alan, you'd be better off avoiding meeting up with this "character" in real life, given his unmeasured posts elsewhere which include threats of beating people to death or near death and if he loses to then take the fight to their families.

Threats such as that come from the loosest of loose cannons.

I'm not trying to import drama, I am however attempting to give a timely "Heads up, watch your back."
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Seedvalue can clarify but I interpreted something different.

That quote came after he listed his Freeplay so I interpreted it as Seedvalue playing along by posting his Freeplay reports as well since he is in a new area and this is a slow month with nothing better to do than post his Freeplay awards in Alan's thread.

Quote: darkoz

Quote: MrV

Quote: Seedvalue

Might play along with Alan on slow month in a new area.

Alan, you'd be better off avoiding meeting up with this "character" in real life, given his unmeasured posts elsewhere which include threats of beating people to death or near death and if he loses to then take the fight to their families.

Threats such as that come from the loosest of loose cannons.

I'm not trying to import drama, I am however attempting to give a timely "Heads up, watch your back."
link to original post

Seedvalue can clarify but I interpreted something different.

That quote came after he listed his Freeplay so I interpreted it as Seedvalue playing along by posting his Freeplay reports as well since he is in a new area and this is a slow month with nothing better to do than post his Freeplay awards in Alan's thread.
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If it’s a problem I won’t no big deal.

This V However can someone point out to me a post of his anywhere on the internet that brings value to the discussion?

There are a few guys that have clearly stated they don’t gamble or win at all in the casino after like 30 years of posting yet they continue to troll people week after week day after day.

No problem let V share all his success

Quote: MrV

Quote: Seedvalue

Might play along with Alan on slow month in a new area.

Alan, you'd be better off avoiding meeting up with this "character" in real life, given his unmeasured posts elsewhere which include threats of beating people to death or near death and if he loses to then take the fight to their families.

Threats such as that come from the loosest of loose cannons.

I'm not trying to import drama, I am however attempting to give a timely "Heads up, watch your back."
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I guess this is acceptable literally posting lies about someone cool

Quote: AlanMendelson

I doubt there are billions. I dont think people really have net wins. Not even those who claim to be APs.
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I did not post NET wins. According to a number of members who have posted here, gambling wins, not net wins, are taxable income. There is an inference that when one leaves the casino up, he or she is obligated to tell the IRS of his winning accomplishment(s). So, if at a later date his session(s) create a loss, he can therefore offset his winnings to whatever extent is available. The fact is that billions of $$ are won annually as well as losses. You nor the IRS have any idea what those actual numbers are because there is no documentation in either direction.

Since there is no documentation of my personal activity, I personally feel there has been no taxable event and therefore am not required to rat myself out. But that is just me. Let me take it a step further. If I was a master electrician, but my primary source of income was in management for Home Depot bringing down six figures, and I work on the side for cash jobs as an electrician making $75/hr., I would not report that income because there is no documentation and no taxable event.

Is that cheating? Yep, but I can live with that.

tuttigym

Quote: tuttigym

[

I understand that winnings are taxable, but like freelance self-employed individuals that perform services where such income is not documented from their clients, no documentation, no taxable event.

Very WRONG!!!

Yes, there was a taxable event and then fraud was committed by not reporting it.

Quote: Seedvalue

I guess this is acceptable literally posting lies about someone cool

Regular viewers know where to look to find your comments about how you'll beat people up who dare to criticize you to your face, or how you've got the highest IQ, the biggest johnson, have sex orgies etc.: classic "playbook" stuff.

As for my play: I am a recreational gambler and as such I expect to lose; it is to my credit that I truthfully post my overall win / loss record; whether I contribute value to the forum is up to the viewer.

Hey, you don't like my posts you can block me, just as I've blocked others whose posts I find incredulous.

Quote: UP84

No, but the overall idea Alan alludes to is correct. Over the the entire US population net player income from gaming is negative.
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I hope so, otherwise all those casinos are making their money by selling drugs or I don't know what all!

I'll give anyone the benefit of the doubt who says he can point to a mathematical reason he makes a living as an AP, even if he won't say exactly how he does it.

I doubt those who claim that the casinos shower them with Comps to the degree they are making it clear the Comps alone are giving them a lavish lifestyle ... while beating the casinos at their own game to boot ... and these casinos never seem to wise up. That's where my doubts lie

With gaming wins you have the opportunity to use your losses to come up with an annual net result.

While you should report all wins including non W2G wins you don't pay taxes on annual net losses.

Someone who wins $100 per week for 51 weeks for a total of $5100, but then loses $6,000 during the last week of the year would report $5100 of wins offset by $6000 of losses for a net loss of $900 with no tax due.

However, the $5100 of wins might increase their Adjusted Gross Income which could affect the value of other deductions.

Quote: DRich

Quote: tuttigym

[

I understand that winnings are taxable, but like freelance self-employed individuals that perform services where such income is not documented from their clients, no documentation, no taxable event.

Very WRONG!!!

Yes, there was a taxable event and then fraud was committed by not reporting it.
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Of course, it is a taxable event from the IRS perspective, but no documentation, no self-reporting, no taxes to be paid. I said it was cheating or in this instance tax fraud. Today that is the national pastime, not baseball or football.

Are there not some folks making a living at sports betting? Do they get W2-G's? Do they self-report their wins?

Hey DRich do you self-report all of your traffic law violations? No? Why not?

tuttigym

Quote: AlanMendelson

With gaming wins you have the opportunity to use your losses to come up with an annual net result.

While you should report all wins including non W2G wins you don't pay taxes on annual net losses.

Someone who wins $100 per week for 51 weeks for a total of $5100, but then loses $6,000 during the last week of the year would report $5100 of wins offset by $6000 of losses for a net loss of $900 with no tax due.

However, the $5100 of wins might increase their Adjusted Gross Income which could affect the value of other deductions.
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Sorry, Alan, that is fantasy. You personally might be that fastidious but the overwhelming majority of recrreational players just don't do that if they even know that their wins are taxable.

tuttigym

Quote: tuttigym

Quote: AlanMendelson

With gaming wins you have the opportunity to use your losses to come up with an annual net result.

While you should report all wins including non W2G wins you don't pay taxes on annual net losses.

Someone who wins $100 per week for 51 weeks for a total of $5100, but then loses $6,000 during the last week of the year would report $5100 of wins offset by $6000 of losses for a net loss of $900 with no tax due.

However, the $5100 of wins might increase their Adjusted Gross Income which could affect the value of other deductions.
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Sorry, Alan, that is fantasy. You personally might be that fastidious but the overwhelming majority of recrreational players just don't do that if they even know that their wins are taxable.

tuttigym
link to original post

The IRS offers a Whistleblower Reward. You should start turning people in.

Quote: AlanMendelson

With gaming wins you have the opportunity to use your losses to come up with an annual net result.

While you should report all wins including non W2G wins you don't pay taxes on annual net losses.

Someone who wins $100 per week for 51 weeks for a total of $5100, but then loses $6,000 during the last week of the year would report $5100 of wins offset by $6000 of losses for a net loss of $900 with no tax due.

However, the $5100 of wins might increase their Adjusted Gross Income which could affect the value of other deductions.
link to original post

But if your gambling losses combined with other deductions don’t exceed the standard deduction, then they’re useless. You’re expected to pay tax on the W2Gs and winning sessions anyway, even with a net loss.

Quote: MrV

Quote: Seedvalue

I guess this is acceptable literally posting lies about someone cool

Regular viewers know where to look to find your comments about how you'll beat people up who dare to criticize you to your face, or how you've got the highest IQ, the biggest johnson, have sex orgies etc.: classic "playbook" stuff.

As for my play: I am a recreational gambler and as such I expect to lose; it is to my credit that I truthfully post my overall win / loss record; whether I contribute value to the forum is up to the viewer.

Hey, you don't like my posts you can block me, just as I've blocked others whose posts I find incredulous.
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If you say so I’m open for a challenge but I mean you’re not a real person so it’s irrelevant

Quote: Seedvalue

Quote: MrV

Quote: Seedvalue

I guess this is acceptable literally posting lies about someone cool

Regular viewers know where to look to find your comments about how you'll beat people up who dare to criticize you to your face, or how you've got the highest IQ, the biggest johnson, have sex orgies etc.: classic "playbook" stuff.

As for my play: I am a recreational gambler and as such I expect to lose; it is to my credit that I truthfully post my overall win / loss record; whether I contribute value to the forum is up to the viewer.

Hey, you don't like my posts you can block me, just as I've blocked others whose posts I find incredulous.
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If you say so I’m open for a challenge but I mean you’re not a real person so it’s irrelevant
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You are great at leaving our one or two words when spreading lies about people. Very cool of you very cool keep up the good work champion

Quote: JimRockford

You’re expected to pay tax on the W2Gs and winning sessions anyway, even with a net loss.
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This is new to me. Please cite your source.

Quote: AlanMendelson

Quote: JimRockford

You’re expected to pay tax on the W2Gs and winning sessions anyway, even with a net loss.
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This is new to me. Please cite your source.
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Yeah, that's definitely wrong...for itemizers.

Alan, I think that Jim is saying that if you don;t itemize then you need to pay tax on reported W-2G handpays as you cannot offset losses against them unless you itemize.

But I'd forego taking the standard deduction; report the wins on your 1040 and offset them dollar for dollar on schedule C up to the amount of the wins, but no more than that.

Quote: MrV

Alan, Jim is correctly saying that if you don;t itemize then you need to pay tax on reported W-2G handpays as you cannot offset losses against them unless you itemize.
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Definitely correct for non itemizers.

Quote: MrV

Alan, I think that Jim is saying that if you don;t itemize then you need to pay tax on reported W-2G handpays as you cannot offset losses against them unless you itemize.

But I'd forego taking the standard deduction; report the wins on your 1040 and offset them dollar for dollar on schedule C up to the amount of the wins, but no more than that.
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Isn’t schedule C for business losses? Not sure my occasional recreational gambling would qualify as a business.
Why forego the standard deduction unless the gambling losses combined with other losses are more, in which case you can just itemize.

Quote: AlanMendelson

Quote: JimRockford

You’re expected to pay tax on the W2Gs and winning sessions anyway, even with a net loss.
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This is new to me. Please cite your source.
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Rude remark deleted.

Quote: JimRockford

Quote: MrV

Alan, I think that Jim is saying that if you don;t itemize then you need to pay tax on reported W-2G handpays as you cannot offset losses against them unless you itemize.

But I'd forego taking the standard deduction; report the wins on your 1040 and offset them dollar for dollar on schedule C up to the amount of the wins, but no more than that.
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Isn’t schedule C for business losses? Not sure my occasional recreational gambling would qualify as a business.
Why forego the standard deduction unless the gambling losses combined with other losses are more, in which case you can just itemize.
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Are you filing a Schedule C as a professional gambler? You would deduct your losses there.

Yes, it shoud be Schedule A to itemize, not Schedule C which is for business expenses: my bad.

Whenever I receive any W2-G's I itemize to avoid having to pay tax on the W2-G amount; had I chosen the standard deduction I'd have to include the W2-G income with my other income and could not offset it against gambling losses.

When itemizing I report my total gambling losses for the year on Schedule A, and total wins on 1040; typically the amount is well in excess of the amount of the standard deduction.

I did this for 2021 and as I had a better than average year (my records showed I had more wins then losses) I reported it and paid the tax.

But most years I and other recreational gamblers lose and have to pay no tax on W2-G income if they itemize..

Quote: tuttigym

Hey DRich do you self-report all of your traffic law violations? No? Why not?

I do not but I am also not committing fraud by not reporting them. I would bet that less than 5% of winning gamblers report their wins. I will admit in my early years of gambling I did not report my small wins. When I was older and had sufficient assets it wasn't worth the risk of cheating.

And there is a big difference between a win being reportable, and not reporting it.

Quote: JimRockford

But if your gambling losses combined with other deductions don’t exceed the standard deduction, then they’re useless. You’re expected to pay tax on the W2Gs and winning sessions anyway, even with a net loss.
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In MS, a hand pay from a large slot win results in a W2G. The state of MS requires the casino to take out the resultant state income tax at that time. If the player wants to recoup that tax, he must file for it with the proper documentation or offsets. The W2G represents ordinary income so when filing must be processed to be part of the taxable income after all deductions standard or otherwise. If one files on a 1040EZ, then there is no offset. If one files using a schedule of allowable deductions, then casino losses can be used to offset the W2G win. I think that is what Mr. Rockford is saying.

As far as paying taxes on other wining sessions, an individual is opening a can of worms for the IRS to dissect as they may require you to provide information on every gambling session and venue for that taxable year. That, for me, would create more headaches than one could imagine.

tuttigym

Quote: DRich

Quote: tuttigym

Hey DRich do you self-report all of your traffic law violations? No? Why not?

I do not but I am also not committing fraud by not reporting them. I would bet that less than 5% of winning gamblers report their wins. I will admit in my early years of gambling I did not report my small wins. When I was older and had sufficient assets it wasn't worth the risk of cheating.

And there is a big difference between a win being reportable, and not reporting it.
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Not reporting casino wins is NOT fraud. Fraud is when one files paperwork with numbers that are intentionally inaccurate or misleading. Not reporting casino wins is an act of omission which if spotted by the IRS can be rectified with an amended return. However, since there is no documentation available to the casino, there is little chance (beyond slight) that the IRS would ever know.

tuttigym