W-2 forms. HOW are you supposed to claim your losses against your winnings?

We (you) do not "fill out" the W2-G forms. You only SIGN it when they bring it after they generate it electronically. They give you a copy. You submit this with your tax return. It has nothing to do with whether or not you walk out the casino door with money. We (you) are not involved in the casino sending W2-Gs to the IRS.

Perhaps your winnings did not include any taxable jackpots(over $1200 for slots/VP). Maybe you won more than you lost and no single pull of the machine amounted to $1200 or more. In which case you had nothing to submit with your tax return.

Just know that if you DO hit a jackpot for $1200 on slots or VP (on Keno, a different taxable amount, I forget what it is), you will receive a W2-G to sign, save, and submit with your 2016 tax return next April.

Most years, once I gather all my win/loss statements, I show way more losses than the wins. Of course I hide these from my husband! Last year I had 12 W2-Gs (including one for a win at the race track). I still "lost" more than I won on all those W2-Gs. The only thing it did was increase the amount of time it took my CPA to enter the data from each one (and hence the cost for her services, though she did give me a "courtesy discount" for some reason).

For every W2-G, she had to enter the casino name, address, phone number, machine number, window number, name of the person who paid me, and of course the date. Everything on those W2-Gs she had to enter. Even if more than one W2-G for the same casino, for example 3 at Bellagio, she had to enter all the same data for each jackpot. I'd never seen that before so I asked her if that was a new requirement. She said something to the effect of "yes and no."

I think I got off track here, but it might be of interest to someone.

And they won't ever know if you don't use a players card, play only tables (live dealers), never hit a jackpot over the taxable amount, and your conscience doesn't demand that you keep strict records and report winnings anyway. I think most people report only what is "official" gambling income, what is documented on a W2-G.

Unless those people in DC decide to tax every small win, e.g.$400, as was proposed recently and supposedly voted down in committee or something. Whether or not you would have your card in the machine, if you hit for $400 (or whatever they decided) the machine would lock up and a W2-G would be generated for you to sign and submit with your tax return. What a mess that would create for the casinos and for us (and our CPAs).

I'm sure you've lost more than you've won during those late night drunken escapades at the craps table where you misplaced your player's card and had to be wheeled back to your room.

NAW! I won money at the MSS at the craps table,drunk off my ass and into a wheel chair.(Twice,so far.)
That amount of the win/loss statement is for all of 2015.
Taxable,my ass. That's the casinos money that I won.

I once walked out with over $1,200 in chips,that I "forgot" to cash in. I was able to walk,then.(Craps)
Tossed it in my carry-on and flew back to Seattle. I sent it back USPS priority to the MSS and they mailed me a check.
Tax evasion? Maybe. Taxable I.R.S. income? Not in my book.

Recently had an audit and we discussed W-2G's. The auditor used the win/loss statements as proof, with no further documentation needed. Asked her about the daily diary thing, and she just laughed.
Biggest problem with W-2G's is they inflate your gross and, for me, eliminate IRA deductions (and raise the bar on medical deductions...which, fortunately, doesn't affect me).

Candy, thanks so much for your posts. Could you provide the IRS publication number for the booklet that they sent you when you were audited?

I tried to search for it on the IRS website but came up empty. Thanks.

So sorry, but I don't have that booklet anymore.
It was quite a few years ago, before stuff was online probably.

I can tell you, though, I panicked just getting the damned "Dear Taxpayer" letter.
Drank extra wine at dinner that night!

It was what they termed a "letter audit" and only of my claimed gambling losses, not a full audit of the entire return. OK, that sounds better.

Called my CPA at the time, he said no problem, just get the win/loss statements from every casino where you played (which I already had). I told him "I don't have a diary", he said none needed.

There was a form to send back, my w/l statements attached.
After a month or so I got another letter from IRS, something to the effect of "Sorry, we are behind in our work, but we haven't forgotten about you. We'll get to yours soon."

Arrggghhh.

Then in another couple months another letter like that...Sorry, we are still behind, but you'll hear back from us soon."

Arrrggghhh.

Finally, another couple-three months later got the good letter. "Upon review of the evidence, your tax return requires no further action. Thank you for your patience."

Maybe they scrutinized it, maybe they didn't.
It wasn't a big amount, either. A waste of taxpayer money!

A friend of mind who plays horses big time sent me a wad of his losing tickets to use. I didn't need them, had enough losses on the w/l statements to cover the
W2-Gs. Plus, I thought, what if they dig deeper, can I prove I was at this track on this day at this time? I was a Federal employee at the time...they could subpoena my time cards! Yikes! For these few paltry dollars? Very doubtful they would do that, but I would worry about it. Plus, you know, what goes around (cheating) comes around. I wouldn't do it. I'd pay the freight first.

On a slight hijack of the thread....

Cool, I didn't know you could do that.

I know MSS is one of those places that if you show up at the cage with more than a grand in chips they ask you what you were playing and call surveillance(?) before they cash you in.

Here is the official word from IRS Publication 17. Remember when they say "all winnings" they mean even the small wins not reported on W-2G's. Then you deduct all losses. This is where the session win/lose comes in to play.



"Gambling Losses Up to the Amount of Gambling Winnings


You must report the full amount of your gambling winnings for the year on Form 1040, line 21. You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. You can't deduct gambling losses that are more than your winnings.




You can't reduce your gambling winnings by your gambling losses and report the difference. You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Therefore, your records should show your winnings separately from your losses.




Diary of winnings and losses. You must keep an accurate diary or similar record of your losses and winnings.

Your diary should contain at least the following information.


•The date and type of your specific wager or wagering activity.


•The name and address or location of the gambling establishment.


•The names of other persons present with you at the gambling establishment.


•The amount(s) you won or lost.




See Pub. 529 for more information. "

I forgot my room number. Security cashed me out,too!
They checked the window,so I wouldn't jump out. I didn't have the right tool,then.

Yes,I mailed in my chips once, and they sent me a check.I sent them my players card # also.
They knew that I was staying/gambling there. Maybe they checked the videos.
That was in 2013,so the policy may have changed.
I requested a win/loss statement from the MSS,but that information was not available for 2013.
My statement came back from 2014: LOST $361.
No W2-G form that year,either.
I did well,last year.