Page 27 - February 2008 • Southern California Gaming Guide

February 2008 Media Picks
What You Need to Know About Taxes and Gambling
JIean Scott and Marissa Chien’s Tax Help For Gamblers—Poker & Other Casino Games reviewed by Gail Anders
’m a huge proponent of doing what I can to keep as much of my winnings at the casino. I keep a logbook, and write about the need to do so. In fact, in last month’s issue of this publication, you may have read my article, “Start a Casino Logbook: Keep Track of your Wins and Losses—You May be Surprised.” And
what inspired me to become a crusader for organizing and tracking gambling activity? In 2007, I read Jean Scott and Marissa Chien’s book, Tax Help for the Frugal Gambler, and decided I needed to create a logbook to keep track of my casino wins and losses for my taxes.
Scott and Chien’s new book, Tax Help for Gamblers—Poker & Other Casino Games is an expansion of their original
Tax Help for the Frugal Gambler, and a handier version, at that. With a wealth of gambling tax-related information, you won’t nd another book like it anywhere. No matter what you play at the casino—slots, poker, blackjack, pai gow—if you go to the casino even a few times a year, and have won $1,200 in one slot jackpot or card hand, know that it was reported to the irs, and you need to read this book. Or at the very least, purchase a copy of this book and give it to whomever prepares your taxes.
Here’s a reality check about gambling and taxes in three rules:
Number one rule for people who gamble: Gambling winnings are taxable income. Period, full stop, no conversation.
Number two rule for people who gamble: Keep track of what you win and lose. Or you will be a loser by paying more than you need to Uncle Sam. In this book, Scott and Chien quote Arthur Godfrey, a famous 1950’s radio and television personality who said, “I’m proud to be paying taxes in the United States. e only thing is, I could be just as proud for half the money.”
Number three rule for people who gamble: Do not assume your professional tax preparer knows about taxes and gambling. Most do not.
And it’s no wonder most tax preparers don’t know. e reality is, by Scott and Chien’s account, the IRS gives confusing details about taxes for gamblers. ere is available IRS information about taxable gambling income, but it is general, sometimes even vague and often open to interpretation.
Scott has become a household name to millions of casino players. She has been featured on Dateline, Hard Copy, To Tell the Truth, numerous Travel and Discovery channel documentaries, and 48 Hours. She has created a legion of gamblers who look for added value in their pastime at the casino, seeking out casino comps that can stretch their gaming dollars. It was only a natural progression in her approach to gambling, that she would compile the skinny on gambling and taxes. And she was wise to choose a tax specialist co-author.
Marissa Chien is an Enrolled Agent, certi ed tax consultant, and president of her own rm in Las Vegas that provides tax accounting and nancial planning. She’s also a self-described gambler.
decision on a case involving gambling as a business.
e federal and state tax parts of the book include the handling of wins and losses; player and casino record-keeping (with examples of how Scott keeps her log and records); online gambling; casino win/loss statements; casino comps and gifts; tournaments and drawings; gambling groups; ling as a professional gambler (where gambling activity serves as a primary source of income); the W-2G withholding rules; guidelines for ling state taxes; gambling issues for non-U.S. citizens; an entire chapter on speci c tax help for poker players; and extremely helpful information on surviving an audit (which I hope I never have to put to use).
in excess of their winnings—provided they can show evidence of those wins and losses in a log. e irs requires speci c records, but does not say what the records need to look like. ey accept everything from handwritten notes to Excel spreadsheets.
Yes, this is my constant refrain, keep a gambling log! Keeping track of what you win and lose is the last thing I’m sure you will be thinking about when you’re chasing that blackjack or royal ush. And when you show those losses as deductions on your tax return, remember they have to be backed up by documentation. e documentation can be cancelled checks, atm receipts and/or bank records. Recording your gambling activity can save you much stress and perhaps, lots of $$$!
And, yes, once again, I have Jean Scott and Marissa Chien to thank for enlightening me about the importance of keeping a gambling logbook—not to mention thanks for the wealth of information in this important book for all gamblers.
With a forward by professional poker player, Phil Gordon, Tax Help for Gamblers is 167 pages, paperbound, and is published by Huntington Press, Las Vegas, December, 2007.
You can order a copy ($24.95) from www.QueenofComps.com or by calling 1-877-798-7rge.
Gail Anders writes for travel magazines and lives in Laguna Beach and Bridgehampton, New York. She says she loves to play in Southern California casinos.
“Number one rule for people who gamble: Gambling winnings are taxable income. Period,
full stop, no conversation.
Number two rule for people who gamble: Keep track of what you win and lose. Or you will be a
loser by paying more than you need to Uncle Sam. Number three rule for people who gamble: Do not assume your professional tax preparer knows
about taxes and gambling. Most do not.”
Jean Scott, who is a legend among
gamblers, is known as the Frugal casino-issued forms, sample tax forms,
GamblerTM and the Queen of Comps. Since the publication of the rst edition of e Frugal Gambler in 1998,
plus the entire irs Procedure 77-29 (handy for your tax preparer). ey have even provided a Supreme Court
February 2008
SOUTHERN CALIFORNIA GAMING GUIDE
Page 27
Tax Help for Gamblers is a well organized invaluable resource. Divided in two parts, one on federal taxes and the other on state taxes, it also contains valuable appendices—four of them, in fact. So there’s no mystery as to how the irs tracks gambling income, the authors have included facsimiles and samples of
e voices of the information are clear—the editor chose to let readers know who was saying what by clearly indicating each author’s name before paragraphs—which I found very helpful.
As you’re reading this, if for some crazy reason you do not purchase this book right away, remember, at least, one thing: Keep a logbook of your casino and gambling activity. e irs allows gamblers to deduct losses up to, but not
Gaming Guide Media Picks