MichaelBluejay
MichaelBluejay
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danepeterson
March 29th, 2021 at 7:11:44 PM permalink
danepeterson, much of the advice in this thread is flat-out wrong. Here's my article on gambling taxes (endorsed by the Wizard) which explains how to report, in great detail, citing official and expert sources. There's more to the topic than can easily be explained in a forum post.

The one thing I don't cover in the article is what to do if you don't have contemporaneous records of your losses. In that case, I imagine you'll be on the hook for paying taxes on the W-2G's as though those were wins. You could double-check with a tax attorney, but I think that's the answer you get. If you do check with a tax attorney, please report back here what you were advised, so we all can learn.
Gandler
Gandler
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danepeterson
March 29th, 2021 at 7:27:43 PM permalink
I had a similar problem some years ago (not to that extent), due to a random W2G that I genuinely forgot about. I just paid the amount that they said that I owed because it would cost more to to fight it it or to amend my tax return and hope (it was less than 3k). I had losses that equaled or were greater than my wins, but it was not worth trying to convinced the IRS and I made the mistake (of not reporting).

My lesson was, if you had a W2G in any amount for a tax year make sure that you claim your wins (and losses) when you do your taxes because in following years they will be far more skeptical of your claims if you amend your claim after being told that you owe money (plus you should in all years, even if most years will be losses). It can be hard to keep track of, but its better to claim your losses the year that you receive them (plus its probably a generally good habit to track losses).

https://www.irs.gov/taxtopics/tc419
AlanMendelson
AlanMendelson
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danepeterson
March 29th, 2021 at 8:07:46 PM permalink
I've gone through this. One year my wife misplaced some W2Gs for our joint return.

We got a bill from the IRS.

I responded to the bill with a hand written note saying we omitted the W2Gs in error but our losses still exceeded our wins.

The IRS accepted the hand written note and the charge was withdrawn.

Write them a letter.
DRich
DRich
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March 30th, 2021 at 7:10:57 AM permalink
Quote: Gandler

I had a similar problem some years ago (not to that extent), due to a random W2G that I genuinely forgot about. I just paid the amount that they said that I owed because it would cost more to to fight it it or to amend my tax return and hope (it was less than 3k). I had losses that equaled or were greater than my wins, but it was not worth trying to convinced the IRS and I made the mistake (of not reporting).



I always tell people to go to the IRS before filing and get a list of all reported income. They will give you a printout showing exactly what was reported to them. Then just make sure that you include all of those items on your return. I have found that many W2G's that I had in my possession were never turned in by the casinos.
Order from chaos
MichaelBluejay
MichaelBluejay
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March 30th, 2021 at 10:02:05 AM permalink
Everyone saying you should definitely report your W-2G's as income, is wrong. Again, I refer readers to how to report gambling income.

No doubt, members will reply to this post attempting to dispute it, without having read the article. Don't do that, read the article first.
rxwine
rxwine
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March 30th, 2021 at 11:00:26 AM permalink
Quote: MichaelBluejay

Everyone saying you should definitely report your W-2G's as income, is wrong. Again, I refer readers to how to report gambling income.

No doubt, members will reply to this post attempting to dispute it, without having read the article. Don't do that, read the article first.



Don't suppose you could link to relevant part.
The Hall of Unverified Claims is a vast place with many shelves.
MichaelBluejay
MichaelBluejay
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March 30th, 2021 at 11:05:32 AM permalink
Quote: rxwine

Don't suppose you could link to relevant part.

(groan)

The explanation starts in the very first section of the article, and in that section there's a prominent link to the details.

Let me guess, you didn't even look at the article before complaining that you couldn't find the relevant part?
rxwine
rxwine
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March 30th, 2021 at 11:16:20 AM permalink
Quote: MichaelBluejay

(groan)

The explanation starts in the very first section of the article, and in that section there's a prominent link to the details.

Let me guess, you didn't even look at the article before complaining that you couldn't find the relevant part?



No i looked at how long the page was. I always read longer pages from the bottom up, because it saves a lot of time, as that is where conclusions or rephrasing the content occurs.
The Hall of Unverified Claims is a vast place with many shelves.
MichaelBluejay
MichaelBluejay
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FTB
March 30th, 2021 at 11:48:13 AM permalink
Quote: rxwine

No i looked at how long the page was. I always read longer pages from the bottom up, because it saves a lot of time....

No, it didn't. Rather than even glance at the intro, you took the time to create a post to complain that you couldn't find what's actually front and center, then I had to reply, and then you replied to that. Some time-saver.

Anyway, as I suspected, you didn't read any of the article. I've done everything but read it to you.
rxwine
rxwine
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March 30th, 2021 at 12:31:45 PM permalink
Quote: MichaelBluejay

No, it didn't. Rather than even glance at the intro, you took the time to create a post to complain that you couldn't find what's actually front and center, then I had to reply, and then you replied to that. Some time-saver.

Anyway, as I suspected, you didn't read any of the article. I've done everything but read it to you.



If you call that a complaint, you're deluded. This is a complaint. LISTEN YOU STUPID MOTHERFUCKER, JUST QUOTE WHAT IT IS YOU WANT TO POINT OUT AND PUT THE GODDAMN LINK TO THE ARTICLE AT THE END OF IT, SO IF WE WANT TO READ THE WHOLE THING WE CAN!
The Hall of Unverified Claims is a vast place with many shelves.

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