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    W-2g

    Have client with boucoup W-2Gs.

    Must we list each one as we must for D-1, or can we total for line 21 ?

    Thanx

    Regards - - Ricardo

    #2
    Originally posted by Ricardo
    Have client with boucoup W-2Gs.

    Must we list each one as we must for D-1, or can we total for line 21 ?

    Thanx

    Regards - - Ricardo
    Is this gambling, refund, or unemployement? or all?

    Comment


      #3
      W-2g

      If you are electronic filing you have to list all of them. Charge for each one.

      Matt
      I would put a favorite quote in here, but it would get me banned from the board.

      Comment


        #4
        W-2g

        Sorry about that.

        It's all gambling.

        R

        Comment


          #5
          I don't see any reason to list them on a Schedule D, however you need to list the W2G on the return. Similar to a regular W2.

          Comment


            #6
            Goes on

            line 21, other income as "Gambling Winnings".

            Comment


              #7
              RLymanC

              I called the IRS on this as I also have a client with 65 1099-G's.

              Was told OK to list all winnings and taxes withheld on one 1099-G and mail in all 1099's with form 8453.

              I have IRS employee number if interested.
              Confucius say:
              He who sits on tack is better off.

              Comment


                #8
                I was wondering why would some one issue 1099-Gs if it is not Governmental.

                A few years ago I had a client with 69 w-2G,s Each one had to be enter individually and the software summarized and put them on line 21 as gambling income.
                They do not have to go on D. Or am I missing something.
                Everybody should pay his income tax with a smile. I tried it, but they wanted cash

                Comment


                  #9
                  Not

                  It is not 1099 G (those are unemployment, etc), Gambling is W-2G. Just some confusion I do believe.

                  R. Lyman phoned IRS and can list as one W-2 G, efile, then submit all with the 8453.

                  Neither 1099 G nor W2 G are entered on Schedule D.

                  Comment


                    #10
                    Why do the 8453. Can you use 8879.Its much easier. You do not have to do any mailing
                    Everybody should pay his income tax with a smile. I tried it, but they wanted cash

                    Comment


                      #11
                      8453 vs 8879

                      I believe if the preparer does not want to enter each W-2G individually with all of the EIN, cashier, race, transaction, etc, which R Lyman did not want to do on his client, you then enter one W-2G for the totals, other info is not filled in, and backup then has to be transmitted with form 8453.

                      S

                      Comment


                        #12
                        Just to throw this out there.

                        If somebody has a bunch of 1099's from gambling, could the question of professional gambler, Schedule C, come into play?

                        Obviously everybody wants to win. But could any of these people be professional gamblers?

                        I think a big factor would be whether their winnings are more than their losings. If somebody gambles that much, and they end up ahead, I'd say they're a pro. You might hit a lucky streak and win some, but if you do it all the time and come out ahead, you're more than a recreational gambler. I'd bet five bucks that from people who gamble a lot, less than 1% come out ahead. I think those 1% are pros.

                        Comment


                          #13
                          8453

                          Originally posted by S T
                          I believe if the preparer does not want to enter each W-2G individually with all of the EIN, cashier, race, transaction, etc, which R Lyman did not want to do on his client, you then enter one W-2G for the totals, other info is not filled in, and backup then has to be transmitted with form 8453.

                          S
                          Could be wrong, but I thought the instructions for 8453 say not to attach any W-2's or 1099's?

                          Comment


                            #14
                            Interesting article on gambling

                            Assuming that you report your gaming activity each year when you file your taxes, play at least a few times a week (vacations are allowed), and have more winning years than losing years, should you file as a professional or as a recreational (amateur) player? If you are fairly new to poker and do not know the difference, read on.
                            In 1987, the Supreme Court issued a decision upholding a taxpayer’s claim that his gambling constituted a business. The Court affirmed the findings of the Court of Appeals and the U.S. Tax Court by ruling that the proper test to determine if an activity is a “trade or business” is that the taxpayer must be involved in the activity with regularity and continuity with the primary purpose or expectation of making a profit. To illustrate the scope of this decision, the following quotes from the Court’s opinion are presented:

                            “If a taxpayer devotes his full-time activity to gambling and it is his intended livelihood source, it would seem that basic concepts of fairness (if there is much of that in the income tax law) demand that his activity be regarded as a trade or business just as any other readily accepted activity, such as being a retail store proprietor or, to come closer categorically, a casino operator or an active trader on the exchanges.”

                            “A sporadic activity, a hobby, or an amusement diversion does not qualify.”

                            To summarize, we can now state that qualifying taxpayers can consider their gambling activity to be a business for tax purposes. This means that you report your gambling activities on a Schedule C instead of under “Other income” on Page 1 of Form 1040, and your losses under “Other miscellaneous deductions” on Schedule A.

                            So, which way should you go? If you file as a professional, you get to deduct your gambling-related expenses, such as travel to and from the cardroom and out of town, the cost of lodging and 50 percent of meals (and possibly even more if you use the per diem method) while out of town, safe-deposit box rental fees, the costs of books on gaming, and any other necessary and ordinary expense that any business is allowed. You can deduct only the amount of your losses plus expenses that do not exceed the amount of your winnings. However, you do have to pay self-employment taxes, which are about 8 percent of your profit. If you have little or no gambling-related expenses, you may be better off filling as a recreational player because of the self-employment taxes. However, you still might want to file as a professional and pay the self-employment taxes, which are really Social Security taxes. By doing so, you are putting some money away for your old age. Additionally, you are eligible for a SEP IRA (that is, a Self-Employed Individual Retirement Plan), which allows you to contribute up to $40,000 to a qualified plan to shelter you from taxes. In other words, 25 percent of your taxable income, up to a maximum of $40,000, is not taxed if contributed to a qualified plan. These figures are for the tax year 2002 and have gone up almost every year lately.

                            Although we have been involved in one case in which the IRS forced a gambler to report his gaming activity on a Schedule C, we know of no IRS code section or regulation that specifies when you have to file as a recreational player and when you have to file as a professional. We have been involved in a number of cases in which the IRS tried to recast a taxpayer’s return that was filed as a professional to one filed as an amateur. In every case, we were able to get the IRS to accept the return as filed (as a professional). One case was appealed to the Tax Court, which allows one more attempt to resolve a case with an appeals officer, and we prevailed.

                            In conclusion, we recommend the method that enables you to pay the least amount of tax, which, if you win regularly, should be the professional method, especially if you take advantage of the SEP IRA.

                            Comment


                              #15
                              8453

                              I agree no attachment, but R Lyman posted earlier that IRS advised him he could file that way.

                              S

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