jeffwarren75
jeffwarren75
Joined: May 5, 2011
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February 13th, 2012 at 10:31:16 AM permalink
I play video blackjack in florida and signed for over 1 million in jackpots this year, unfortunately everytime you bet 500 a hand and either double or get blackjack it is a taxable jackpot, my win lose statement shows only a small win of 12k but i kept no other records, is there anything I can do or am I going to get slaughtered on taxes
klimate10
klimate10
Joined: Feb 6, 2012
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February 13th, 2012 at 10:49:12 AM permalink
I made a post of this same problem that happened to my friend. He plays slots and had something like several million in wins, as shown by some some tax form. Obviously, he didn't win millions because the forms only report wins, and the forms do not account for losses. What he did was go back to the casino and ask for his full win/loss statement. The casino had full win loss statements because he always used his player card. The casino knew, and was able to provide evidence, of every single penny that he won and lost.

My friend, however, did wind up losing a boat load of cash while going to pick up his win/loss statement. lol.

If you did not use a player's card, then it gets interesting. Did you use a players card?

Good luck, Mr. Warren Jeffs. lol

The above is not legal or accounting advice. And you should be asking an accountant, not us.
Wizard
Administrator
Wizard
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February 13th, 2012 at 11:16:03 AM permalink
I've always heard that win/loss statements are not very reliable, and the IRS knows it. Still, at least you can show something for a net win of only 12K. If you're truly a net loser then the IRS should accept a well-documented log of all your play that year. This is a big topic. It is addressed in much more detail in Tax Help for Gamblers by my accountant, Marissa Chien.
It's not whether you win or lose; it's whether or not you had a good bet.
MathExtremist
MathExtremist
Joined: Aug 31, 2010
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February 13th, 2012 at 11:22:39 AM permalink
Quote: Wizard

I've always heard that win/loss statements are not very reliable, and the IRS knows it.


That may be true, but it's better than nothing. The instructions on W-2G state:

You can deduct gambling losses as an
itemized deduction, but you cannot deduct more than your
winnings. Keep an accurate record of your winnings and losses,
and be able to prove those amounts with receipts, tickets,
statements, or similar items that you have saved. For additional
information, see Pub. 529, Miscellaneous Deductions, and Pub.
525, Taxable and Nontaxable Income.

I understand that personal gambling journals have been sufficient evidence in audits but it doesn't appear the OP had one. Just one more reason to play craps -- you can't ever get a W2G. Except, I suppose, on the Fire Bet.

Question: I've never been at a table where the top Fire Bet win pays out at 1000 for 1. That hits the IRS threshold, so does the game stop for W-2G forms?
"In my own case, when it seemed to me after a long illness that death was close at hand, I found no little solace in playing constantly at dice." -- Girolamo Cardano, 1563
Tiltpoul
Tiltpoul
Joined: May 5, 2010
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February 13th, 2012 at 2:18:43 PM permalink
Quote: MathExtremist


Question: I've never been at a table where the top Fire Bet win pays out at 1000 for 1. That hits the IRS threshold, so does the game stop for W-2G forms?



They usually stop for 250-1 and definitely stop for 1000-1. The 250-1 depends on the amount bet and the state's individual rules (i.e. Indiana doesn't require it, but Iowa does). It's usually a fast process, but again, that also depends on the casino.
"One out of every four people are [morons]"- Kyle, South Park
AlanMendelson
AlanMendelson
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February 13th, 2012 at 2:44:48 PM permalink
Yes, W2Gs are issued for the Fire Bet when its more than $1199. Bet $1 and you're paid $1,000 there's no W2G.
boymimbo
boymimbo
Joined: Nov 12, 2009
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February 13th, 2012 at 9:59:15 PM permalink
If your W2Gs are all from the same casino and you have a detailed win-loss statement, then at least you can make up a gambling journal to show your gambling history. After all, if you are getting a W2G for each gambling session, then you know exactly what days you gambled on. You should also be able to pull whatever records you used to fund your gambling excursions, be it a withdrawal record from a bank, a deposit with the casino, etc.

Your goal is to rebuild your gambling history for last year, and to be smart about it. With a source record of where you got the money from, a detailed Win-Loss form, a made up gambling journal, and a record of deposits into your bank account, you should be able to put together a true reflection of your gambling history from last year.

Good luck.
----- You want the truth! You can't handle the truth!
EvenBob
EvenBob
Joined: Jul 18, 2010
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February 13th, 2012 at 11:00:23 PM permalink
The best thing is never get involved in games where its possible that your
winnings will be reported. Its a real can of worms to open.
"It's not enough to succeed, your friends must fail." Gore Vidal
odiousgambit
odiousgambit
Joined: Nov 9, 2009
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February 14th, 2012 at 12:36:06 AM permalink
Quote: EvenBob

The best thing is never get involved in games where its possible that your
winnings will be reported. Its a real can of worms to open.



It's one reason I draw back from video poker.
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
FleaStiff
FleaStiff
Joined: Oct 19, 2009
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February 14th, 2012 at 12:58:24 AM permalink
I've never had a jackpot that I had to sign for in any game or in any casino.

I'm told that one of the advantages of the off shore boats is that the winnings take place in Panama and are not reported to the IRS but I've never even understood if that is true or not. Of course for it to be relevant to me I would have to have winnings over and above the cost of the buffet. And not even the slot players seemed to do that well.

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