w-2G

[Unregistered]

anyone out there have any gamblers? I have one gambler that has 61 W-2 G's. Is there any reason not to combine the total from all payers that have the same ID#?

thanks,
j

[Unregistered]

w2-g

i have always reported just totals and the only time i ever
heard from the irs was if my total did not match with the "reported"
totals.

[Unregistered]

W-2g

thanks for that info.
j

[Unregistered]

w2-g (cont'd)

guess i should have said my "client's" totals that is.

[jainen]

We always did that

We always did that in the old days (before e-file). One number on line 7 covered all W-2s, one number for all pensions, etc. The tax code doesn't actually specify how you have to report income--only that the tax be correct.

(Personally I don't think that last sentence is strictly correct, but that never stops me from mouthing off anyway.) (BB--my pledge is only to not insult OTHER posters.)

[Black Bart]

Put 'em together

IRS will take them like that. I've done it that way for years (no use killin' yourself over the small stuff) and had no kickbacks yet.

Like the others said, the amount listed just has to be at least as much as the 1099s. It can even be higher (for conscience-stricken folks who want to include unrecorded winnings) and will still go through okay.

jc: Point taken.

[Unregistered]

I'm going to disagree a bit with Black Bart in his assertion that the amount listed has to be at least as much as the total of the W2-Gs. The taxpayer may get a letter from the IRS if the amount is less than the total but there is some authority to enter less than the total.

There is a good Tax Court case to read in this area. Lutz TC Memo 2002-89. In essence, what the judge allowed is a reduction in the gambling winnings to take into account the amount of bets that were placed by the taxpayer. This does NOT mean you net gambling losses against gambling winnings. But, if you sat down at a slot machine and won $20K and had put in $3k in bets on that same machine in the same gambling session, you would only need to report $17K in gross income.

The evidence showed, in one instance, the taxpayer won $99,500 and the taxpayer placed bets of $4,975. The judge wrote "Therefore, $4,975 of the $99,500 slot machine winnings is in the nature of a recovery of capital and should be EXCLUDED (emphasis added) from petitioner's gross gambling winnings to arrive at gross income under section 61 and adjusted gross income under section 62."

As noted above, this does not allow a general netting of gambling wins & losses but it does appear to allow a limited reduction in gambling winnings to be reported as gross income on line 21 of the 1040.

New York Enrolled Agent

[veritas]

So my brother won 5k last weekend in Las Vegas Poker tournament. He should reduce winnings by buy in?

[Unregistered]

There is a good Tax Court case to read in this area. Lutz TC Memo 2002-89. In essence, what the judge allowed is a reduction in the gambling winnings to take into account the amount of bets that were placed by the taxpayer. This does NOT mean you net gambling losses against gambling winnings. However, if you sat down at a slot machine, won $20K, and had put in $3k in bets on that same machine in the same gambling session, you would only need to report $17K in gross income.

I disagree with the court case and the reasoning. Let’s use the same example. Say you play your first hundred dollars and won nothing, so there is your first $100.00 lost, then you continually playing and losing up to $3,000.00 dollars. There are you Sch. “A” Losses. Then the next play you hit the jackpot and win $20,000, there is your $20,000 dollars win for line 21. Minus the $1.00, it cost to play. (If you’re playing the dollar machine)

[DaveO]

IRS Form 5754

May be used to split winnings among several players. If someone had a backer for their buy in in a tournament or if wagers were made with joint funds. This could expaalin line 21 being less than the sum of the w2-g forms.