win loss statements - how to write off

Lets say I owe the tax man lets say on $25K retirement income I took out in early June but I already have that much on my casino loss form by the end of July. I just cashed in $8K at BJ and still have ~ 20K of losses. My intent was to wait and deal with it next spring. Thinking as of now with my casino losses considered I am a push or barely even up for now. But I don't want to risk flagging the evil tax mafia. I will consult with a tax advisor but just wondering what the gambling forum thinks. I know I can write off losses but not sure how much and the process yet. I may just pay estimates taxes on the $25K I cashed in and worry about it later to be safe...

if you are losing more than you're winning, have kept a diary and your own records*, and will itemize deductions instead of taking the standard deduction, then you should be OK against paying taxes on your winnings you report. Only up to that amount, though, that you are reporting you won.

In other words, it sounds like you want to apply your excessive losses to reduce your tax liability in general. No, doesn't work that way. You can only offset your gambling wins, not that retirement income you took out .

* you don't use the casino's win-loss record

the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!”   She is, after all, stone deaf. ... Arnold Snyder

Quote: odiousgambit

if you are losing more than you're winning, have kept a diary and your own records*, and will itemize deductions instead of taking the standard deduction, then you should be OK against paying taxes on your winnings you report. Only up to that amount, though, that you are reporting you won.

In other words, it sounds like you want to apply your excessive losses to reduce your tax liability in general. No, doesn't work that way. You can only offset your gambling wins, not that retirement income you took out .

* you don't use the casino's win-loss record
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This was an excellent answer but I just want to amplify it.

Casino losses can only be used to offset casino wins.
Casino losses cannot offset other income.

Its actually ALMOST the same with stock market and crypto currency losses... but SOME investment losses can be used to offset other income. The limit is $3000 per year.

Really, consult with a tax advisor.

Quote: odiousgambit

* you don't use the casino's win-loss record
link to original post

I have wondered about this. I'm not saying I have used the casino's win-loss statement in figuring my taxes; not saying I haven't. But, if I don't keep records, the win/lost statement is the only documentation of my casino activities.

For instance, lets say a low-roller, who goes to the casino a 4 times a year, hits an unexpected $1,250 hand pay on his December trip. He hasn't kept records because up until he hit this first-ever hand pay, he really had no need to. His win/loss statement shows an overall loss for the year, and he wants to itemize. What are his options?

Quote: Joeman

Quote: odiousgambit

* you don't use the casino's win-loss record
link to original post

I have wondered about this. I'm not saying I have used the casino's win-loss statement in figuring my taxes; not saying I haven't. But, if I don't keep records, the win/lost statement is the only documentation of my casino activities.

For instance, lets say a low-roller, who goes to the casino a 4 times a year, hits an unexpected $1,250 hand pay on his December trip. He hasn't kept records because up until he hit this first-ever hand pay, he really had no need to. His win/loss statement shows an overall loss for the year, and he wants to itemize. What are his options?
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If it was me, I would claim $1250 in losses to offset the win. If you are unlucky and get audited use the win/loss statement as your "proof". Worst case is they will not allow it and you will pay taxes on the $1250.

Thanks you all - I will inquire with my tax person. I feel since I am unemployed and have only made 10K income this year before getting fired at the end of January - I should be allowed to claim self-employment as a gambler and put my gambling losses towards losses. Casino losses should be allowed to offset other income. That is how Trump scams and gets away with not paying any taxes claiming losses and other investments. I don't think its fair. The IRS sucks...

At least I can say I have morals. In 2021 I only made $48K yet paid $4K in taxes. That is a lot more than Mr Trumper can say.
And the IRS just pays him off. He doesn't even know how many illegal immigrants are working on his golf courses. Yet the IRS
won't let other little people do the same thing because the IRS is totally corrupt and need reform. Half of them should be in jail as well...

Has anyone here ever been audited for gambling activities?

I've had two major audits by the IRS including the mother of all audits-- the Taxpayer Compliance Measurement Program audit.

The other audit was when I sold my Internet company and the IRS sent TWO auditors who sat in my accountant's office for two days going over the company's books and the personal tax returns of me and my partners. That year I had $2.9-million in W2Gs.

In both cases NOTHING was said about my casino numbers. Nothing.