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Originally posted by: fingerstim
These comments are very interesting. I will add my two cents. I am an attorney and am pretty up on tax law. Gambling winnings are reported on a W-2G. Prizes are reported on a 1099. You can claim these items any way you desire on your tax return but if you are audited you will have a problem. It will not be a big problem but it will be a problem. The auditor will not buy that prize winnings reported by a casino on a 1099 can be offset by gambling losses. The prize being discussed is akin to winning $750 in a bowling tournament for which you will get a 1099. It will be tough to win any argument that the prize was the result of gambling so it can be offset. If that were the case the casino report on a W-2G.
Originally posted by: fingerstim
These comments are very interesting. I will add my two cents. I am an attorney and am pretty up on tax law. Gambling winnings are reported on a W-2G. Prizes are reported on a 1099. You can claim these items any way you desire on your tax return but if you are audited you will have a problem. It will not be a big problem but it will be a problem. The auditor will not buy that prize winnings reported by a casino on a 1099 can be offset by gambling losses. The prize being discussed is akin to winning $750 in a bowling tournament for which you will get a 1099. It will be tough to win any argument that the prize was the result of gambling so it can be offset. If that were the case the casino report on a W-2G.
Beg to differ. I am not an attorney, but have worked in taxes for the past 12 years. If the ONLY way you could enter a tourney was through gambling at a casino, and you get a 1099, then it is "offsetable" with gambling losses.
