W2G Winnings and Losses

[Jesse]

I suppose that would depend on how you would define a gambling 'session' or 'activity'-- some would define each individual pull of the slot as a seperate session, I would not. If you start with a $100 and while on the same slot, you work your way up to $150, then all the way back down to $50 before you stop, then you have a loss of $50 for that activity. You step away and come back later that day or the next, that's a seperate activity. You start with $100 again and this time when you get to $125 you stop. Now you have winnings of $25. This $25 must be reported, the loss can be taken on Sch A, Misc deductions, not subject to 2% but only up to the amount of the winnings.

While this may seem like a negative, or null tax effect, it is important to do this, because, as someone else has already stated, the increase in AGI may have an impact somewhere else on the return.

Hope this helps.

I like your theory!

And that is why I question how much is to be included in income? This report has a daily read out with most days netting a loss. If I can consider each day seperately there is a couple of days w/ winnings - not much to worry about. If all of "money out" winning is income, it is almost $56,000 and it impacts a lot of items on the tax return.

I'm not looking to cheat the system I am just unclear as whether or not it is income?

[gkaiseril]

All Winnings are Taxable

All gambling winnigs are taxable no matter when won during the year or what your lost.

The Feds and state just want your money and are figuring how to get it without you catching on, so you can deduct the losses somewhere but really pay more even with all losses.

[jimenright]

Jim

The IRS does not honor the casino printouts because they may not contain all of the gambling activity. The IRS expects the gambler to keep a log. This is explained in the IRS docs.