Russell Fox, our favorite accountant for gamblers will be on the show in a couple weeks. We will be talking about tax things to be thinking about before the end of the year. Send us your questions for Russell. You can post them here, or send them to [email protected].
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Are winnings on sports book apps reported to the IRS the same as “in-person” winnings at the sports books? I began with $4000 in my account a few months ago and have built up my account to over $20,000 with no individual bets over $1200 made. I know if I did this “anonymously” in a sports book, I wouldn’t be issued a W2-G.
When filing as a Schedule C professional, if there are W-2Gs to allocate to the business, what is the best way to notate this so that the IRS doesn’t see a mismatch in reported W-2Gs?
Do you know if the online gaming casinos that are regulated in NJ or any other state for that matter are required to issue W-2 gs to any person winning more than $1200 if they primarily played table games like BJ or Baccarat?
Recreational gambler audited for the past several years because total of all W-2Gs did not match win reported. (Never will)
After supplying copy of win / loss log and memo secured from Jean Scott’s website detailing how to calculate win, IRS has accepted results.
Do you recommend sending in documentation with initial submission of tax return, or just wait each year for CP-2000 information request?
Under the proposed “tax plan” just released, will recreational gamblers still be able to deduct gambling losses on Schedule A?
Are there any other changes that would effect gambler’s tax reporting?
When filing separately, are you able to deduct your spouse’s losses to offset your winnings?
When filing separately, each spouse is on their own.
Current law: Under current law, a taxpayer may claim an itemized deduction for losses from
gambling, but only to the extent of gambling winnings. However, taxpayers may claim other
deductions connected to gambling that are deductible regardless of gambling winnings. THIS LAST SENTENCE APPLIES TO PROFESSIONAL GAMBLERS USING 1040 Schedule C (Profit or Loss from Business)
New Provision: Under the provision, all deductions for expenses incurred in carrying out wagering
transactions (not just gambling losses) would be limited to the extent of wagering winnings. The
provision would be effective for tax years beginning after 2017. TRANSLATION: Even professional gamblers cannot deduct a net loss on 1040 Schedule C for the year.
Report the net “Session Winnings” according to IRS regulations. This will never match the sum of W-2Gs. Later, the IRS will send a notice asking for taxes on the difference. That is the time that you provide the IRS with your Session logs. This usually works.
Form W-2G is issued by a casino or other payer to some lucky winners with a copy going to the IRS. Generally, only winners of the following types of gambling activities will be issued a W-2G: bingo or slot machine players who win $1,200 or more, keno winners of $1,500 or more, gamblers in other activities who win $600 or more when the payout is 300 times or more of the wager amount, and poker tournament players winning $5,000 or more. Sometimes federal income tax is withheld on the winnings; in that case a W-2G is issued regardless of the type of gambling activity.
HOWEVER, the IRS requires reporting ANYONE to the IRS who receives more than $10,000 cash in one transaction (or a series of related transactions) using IRS Form 8300 including name, address, and soc security #. Taking the $20,000 out of the account will trigger the preparation of that form.
Does an individual who wins a tournament for over 10k cash need to file this 8300 form? Does it matter whether player is playing recreationally vs as self employed poker player? Thank you