Let's say you get a handpay on a lucky spin and win like $2,000 get paod by an attendant and blow it all back into tight machines. Do you still have to pay taxes? I mean you didn't LEAVE with any money as you lost it right back. I am still confused on stuff like that.
Nathan, the fact that you got a handpay is irrelevant. Whether you get a handpay or not, you add up all your daily wins, and you pay taxes on that. There's a more detailed answer in my article about gambling taxes.
No, you don't pay taxes on your losses. You might be able to *deduct* your losses, but you certainly don't pay taxes on them.Quote: billryan
Wins and losses. Not just wins, although there are some states that tax you on wins, regardless of losses.
If anyone reports W2-G wins they're almost certainly doing it wrong. You don't report W2-G's, you report the total of session wins. One year I received a fistful of W2-G's but didn't report any of them, because I had no session wins. Again, see the article.Quote: Zcore13
Nobody claims wins unless they are W2-G.
No, you don't pay taxes on your losses. You might be able to *deduct* your losses, but you certainly don't pay taxes on them.
The question posed requires an article-sized answer, which is why I referred the OP (and everyone else) to my article. There's no point in battling details in the forum.
You are 100% wrong on that. Read the article I referred you to. It's based on IRS documents and tax expert advice. As one of my expert sources says, "You may not, repeat NOT, subtract your losses from your winnings and only report the amount left over, if any. You're supposed to report every penny you win, even if your losses exceeded your winnings for the year."Quote: billryan
You said you add up your daily [actually session] wins. That is not correct. You add up your daily wins and your daily losses. You only pay taxes on the difference between the two.