Why Don't I Get a W-2G for Blackjack?

Why do I not get a W-2G when I lose $6k at blackjack over a one-year period? They tax your winnings. What is the threshold for losses?

Why would a casino issue you a W-2G for losses? In the upper-right-hand corner of the form, under "W-2G," it says, "Certain Gambling Winnings" [emphasis added]. A W-2G is the same as the basic W-2: It tells you and the IRS how much money you've earned, whether it's from gambling or your payroll job.

Thus, there's no "threshold for losses" -- except that you can deduct your gambling losses up to the amount of your winnings, though only if you itemize your deductions.

We suspect you're referring to a casino win/loss statement. This is a form you can get from casinos that track your play, either on machines through a players card or at the table games by being rated.

You have to ask the casino to issue you a win/loss statement. Some allow you to make the request online via email or through their websites; at others, you need to call or appear in person at the players club.

There's a long discussion of the ins and outs and pros and cons of using casino win/loss statements in our book Tax Help for Gamblers (the link takes you to the second edition, which you can pick up for $3, or wait for the completely updated third edition, which will be available as an ebook in a month).

But the bottom line is, the IRS doesn't consider win/loss statements as enough evidence to support a gambling loss. For that, you need an accurate diary or similar record of your losses against winnings.

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Comments

Pat Higgins Dec-30-2018

Pat H

Concerning the individual who lost $6000 at BJ over a year, he needs play better basic strategy or learn to count cards--there are some simply ways to do this or learn another method of winning in the casino like Dice control.  Again there are several people / organizations that can help him.  Put him in touch with me and I will give him some suggestions.

[email protected] Dec-30-2018

to Pat H

Actually, he could be playing perfect basic strategy or even counting cards and still have those kind of losses.  Even card counters will lose nearly half the time.  While the probabilities work out over the long run, a year is a pretty short period for long-term probabilities to come into fruition.

I am surprised how many people don't seem to realize that they need to report all gambling winnings as taxable income, whether they get a W2-G or not, and they must keep a diary of some sort in order to deduct gambling losses.  I just keep a little notepad where I put the date, the casino, the machine number (if playing a machine), the game, the buy-in, the cash-out, and the net win or loss.  I then report all the positive sessions on line 21 of my 1040 and all the negatives (up to the wins) on line 28 of my Schedule A.  It's surprising that someone who reads LV Advisor wouldn't know this, since they've had a gazillion articles laying it out.

Jackie Dec-30-2018

Accurate reporting

Table games do not make accurate reporting and the reason why win loss reports are not accepted.  When you first sit at a table and hand over your players card you are rated at the minimum bet times hands played per hour (average).  If you want more perks or a higher rating you must sweet talk the pit boss into personally observing your rate of play.  Therefore you record where you are playing the date, how much you bet times how many hands played plus time started and stopped along with how much won.  Your bet times hands played is your loss amount reduced by how many times won.  The IRS accepts this but if audited the IRS will get a copy of the win loss statement as proof you were actually there on the date and times recorder as many will falsify such info.  Therefore, if you don't use a players card then get one.

A J Conner Dec-30-2018

QOD

With the advent of legal sports betting outside of Nevada will pay to enter contests like the Westgate super contest and super gold contest be expanded to other areas where sports betting is legal? Eliminating the need for me to have a proxy.

O2bnVegas Dec-30-2018

not quite right

I was audited.  I submitted win/loss statements only.  The statements were accepted, over and done with.

Enclosed in my "dear taxpayer" letter was a booklet of instructions on how to submit "evidence" of my losses, including a list of what is accepted as evidence: casino win/loss statements, losing horse race/lottery/sports tickets, personal diaries and more.   Nothing was said that some sources of evidence were considered more credible than others.  

A diary may be necessary if you are audited and have nothing else to substantiate what you claimed on your tax return.

Win/loss forms include a disclaimer such as "does not constitute an accurate accounting record", etc., since their info depends on use of the players card. They can't account for machine coin in or coin out/table play/prizes/tournament winnings if a card isn't in use to capture it.  That's what the disclaimer is saying.  Want to claim more losses than the W/L says?  Keep a diary.

Question of the Day - 30 December 2018

Comments