Help me decipher this gambling report form

[jglmac]

This what I got from the Bellagio this year:

Casino         Coin In      +Jackpots     Coin Out

Bellagio

$8,461.08

$1,880.00

$10,603.63

-$262.55

So I have my W2G's which equal $1880 and i had taxes withheld.  But I believe overall, I lost the $1880 plus $262.55, so I would be deducting $1880.  Is this correct?

Thanks,

Jeff

[Anonymous_ · Accepted solution]

You need to maintain records; you cannot simply "net everything".

See https://www.taxprotalk.com/forums/viewtopic.php?f=8&t=8581

See also https://www.thetaxadviser.com/issues/2016/oct/taxation-of-gambling.html

See further https://www.irs.gov/pub/irs-drop/n-15-21.pdf

[NCperson]

the income needs to be reported

separately, the losses are only deducible if you itemize and cannot exceed your gains.

[Mike9241]

that w-2G may not reflect all your winnings since there are $ thresholds for when it must be issued.  you are responsible for reporting all your winnings. as  stated you can take an itemized deduction for your losses up to the extent of your winnings. but to be of any benefit your itemized deductions must exceed your standard deduction. 

[jglmac]

Thanks. i do have records by each casino -- how much i bought in for and how much i cashed out for.  So for example, while I won $1880 in taxable jackpots at Borgata, my records indicate that overall I lost $252 for the year (all buys in minus cash outs).  I will be reporting the $1880 as a i havea W2G, but my records indicate that with a $252 loss, I will be able to offset all of it, if i'm not mistaken.  (but not more than $1880).

[jglmac]

Yes, I will be reporting all of the income.  The W2G was provided to me when I won a jackpot over $1200; but my records indicate an overall loss of $252 at that casino for the year (including the $1880 win), so believe I'll be able to deduce the $1880.  I do itemize.

[Anonymous_]

@jglmac 

As stated previously, you have to report all of your gambling winnings. You can then deduct your losses as itemized deductions on Schedule A (but not in excess of your total winnings).

[xmasbaby0]

We see a lot of gamblers who incorrectly expect their losses to offset winnings.  Sometimes your losses have no effect at all---unless you have enough itemized deductions on a Schedule A, your losses do not change your tax due or refund.

Gambling

To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses

Gambling winnings are taxable income.  Losses are an itemized deduction.  If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect.

https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/

https://ttlc.intuit.com/questions/1900352-can-i-deduct-my-gambling-losses

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[NCperson]

@jglmac - so what I gather is that - at a minimum  - you had a winnings of $1880 and you had losses of $2132. 

The winnings may be higher based on your records, but let's keep it simple

The $1880 is reportable as income on Form 1040. 

The $2132 can be reported as an itemized deduction on schedule A; however, it can not exceed $1880. (net losses are personal losses and not tax-deductible)

if you take the standard deduction, yes, that does mean you have to report the $1880 of wins and get no benefit of the losses. 

https://turbotax.intuit.com/tax-tips/jobs-and-career/can-you-claim-gambling-losses-on-your-taxes/L4l...

[AmeliesUncle]

As Tagteam mentioned, you report EVERYTHING you won (although if you keep close records using the "session" method, that may be able to be adjusted).

It says "Coin Out" of $10,603.63.  At first glance that seemingly indicates the amount you won, so you report that full amount (well, sort of, depending on what the casino means by that).

It says "Coin In" of $8,461.08.  At first glance that seemingly indicates the amount you spent, which would be an Itemized Deduction on Schedule A.

However, statements from casinos are notoriously unclear and vary from casino to casino.  So you would need to ask that casino exactly what their statement means.  The actual amounts you need to report may not be reflected at all on that statement (you need to keep your own records).