Gambling losses

[lindatep]

I know the IRS wants gambling winnings and losses reported separately, however, I received an annual statement from a casino showing overall net loss of $X.  They don't split out winnings and losses and they state that such a report will not be made available.  I did not keep a log of my slot machine wagers and winnings.  How should I report the losses/wins on my return?

[DavidS127]

If you haven't kept the records required by the IRS for gambling winnings and losses described in IRS Topic 419 at this ..., the best you can do is enter your estimate of winnings and losses.  You are required to tell the IRS when a number on your tax return is an estimate.

Note that the casino is required by the IRS to furnish a Form W-2G to you if you receive:

1. $1,200 or more in gambling winnings from bingo or slot machines;
2. $1,500 or more in winnings (reduced by the wager) from keno;
3. More than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament;
4. $600 or more in gambling winnings (except winnings from bingo, keno, slot machines, and poker tournaments) and the payout is at least 300 times the amount of the wager; or
5. Any other gambling winnings subject to federal income tax withholding.

This IRS "interactive tax assistant" website may help, but without the records of winnings and losses you are left with estimates.

[Anonymous]

you can not just disregard it because it is a net loss.  you must estimate your winnings.   many items on your federal return are affected by your adjusted gross income which would include winnings but not losses.    some states tax income on based on your federal adjusted gross so you could be underreporting your state tax liability.    it is advisable to keep track.   you never know when the IRS may audit you and you are somewhat at its mercy without contemporaneous records,