You're right, thank you. I updated the article.Quote: Zcore13
First, you can and do receive W2-G's on table game wins. Wins of $600 or more (after deducting the wager) and at least a 300-1 odds payout receive W2-G's.
That's not true, from the player's perspective, which is what we're talking about. The audience for W2-G instructions is the *casino*, not the player. The *casino* can elect to report multiple payments on a single W2-G, for either a calendar day or a gaming day. This has absolutely nothing to do with how a player is supposed to keep track of his/her wins/losses. About that, IRS Notice 2015-21 states quite clearly, "Gross income from a slot machine wagering transaction is determined on a session basis," and I can't find anything newer that supersedes that.Quote: Zcore13
The IRS does not go by sessions anymore. They go by a calendar day (easily attainable) or the Casinos gaming day (no usually attainable). The W2-G instructions specifically say it is by the day and even define the term.
Quote: MichaelBluejayYou 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.
There's also IRS Publication 529, which says, "You can't reduce your gambling winnings by your gambling losses and report the difference."
Again, all this is explained in my article, which includes official and expert sources.
First of all, what you wrote absolutely suggested that you meant subtracting losses from winnings. "You add up your daily wins and your daily losses. You only pay taxes on the difference between the two."Quote: billryan
Reading is FUNdimental. Read what I wrote. I didn't say to subtract your losses from winnings anywhere. I said you only pay tax on the difference. That is 100% accurate.
I'm reminded why I quit this forum in the first place. I'm out again.
You also increase the total gross income, the AGI, on your tax form, and for a lot of people that is also a disaster.
There's a more detailed answer in my article about gambling taxes.
Quote: You can deduct your gambling losses, but there are some catches:
1. For example, if you lose $1000 playing slots, and the next day win $400, and that's the only gambling you do for the year, you can deduct only $400 of your slot loss. You'll report a $1000 win and a $400 loss.
(Why do apostrophes not work?)