Page 33 - January 2009 • Southern California Gaming Guide

by Gail Anders
Last year I wrote about keeping a casino logbook in the January 2008 issue of this paper, and this year, the editor asked me to update my article for 2009. So here goes. I’m a casino player, and in 2008 I won more than I lost—lucky me—mostly in Southern California casinos.
Of course, I kept all my W-2Gs, and have been keeping a log of my wins and losses now for
two years—probably the best thing I’ve done when it comes to paying taxes. And for the second year
in a row, I won more than I lost. Because I had gambling losses to deduct from my winnings, I will not have to pay as much in income taxes as I originally thought.
Yes, Uncle Sam demands a share of our luck at the casino. And from past experience, I found that if I didn’t keep a record or a log of my casino play, I wouldn’t know what I’d won over the course of a year, or more importantly, what I’d lost. Gambling losses are a key element in determining income taxes on winnings, not to mention how I may view
or adjust my future play at the casino.
As most gamblers know, the Internal Revenue Service
(irs) requires casinos to report on a W-2G form all players’ jackpots of $1,200 or more on slot machines or other games. e W-2G form lists your name, address and Social Security Number plus other pertinent information to you win. When you win a jackpot of $1,200 or over, casinos require proper identi cation and Social Security Number before they pay. So always be certain to carry a valid form of identi cation when visiting a casino. Some casinos even have jackpot winners sign forms attesting that the Social Security Number they give to the casino is valid and is, indeed, their Social Security Number.
only do this if you have documentation of your losses. Keeping a diary or logbook, therefore, is the best way to do this.
To keep and accurate diary or logbook, be certain you include the following:
♦ e casino name and address of where you played
♦ e date and time of when you played
♦ e type of game you wagered on (slots, blackjack, poker, etc,)
♦ e amount(s) you won and/or lost for each session or game
♦ Proof of your winnings or losses (W-2Gs, atm receipts, cancelled checks, bank withdrawals, credit card receipts)
If you are ever audited by the irs, when you have a logbook of your winnings and losses, you will have at least the basic records to show where, when and how
much you gambled. You also must keep any atm receipts, cancelled checks or bank statements showing casino transactions to back up your logbook. e idea is that your logbook has to be as accurate as possible. I’ll leave the professional tax audit advice to a cpa, but at least with a log, you’ll have a good start in showing your gambling records.
I keep my logbook on my computer, in the spreadsheet program, Microsoft Excel,
but you can also keep it simply in a notebook by hand. I
like to keep mine in Excel because Excel can automatically total my winnings and losses as I make additions to the log. I set it up with eight column headers: Date Played, Time, Casino, Casino Address, Game Played, Winnings, Losses, Proof.
Within a few months of starting my log, I added two other columns: one for the amount of my gambling stake each time I went to the casino; and the other for the amount I left the casino with. ese two columns are not for the irs or potential tax relief, but for me to be aware of my gambling and how I played. I was shocked to notice that on certain casino visits I would win jackpots and play most of them back! So I became very mindful of how I was playing at the casino. ere is a tendency for casino players, particularly those who have won large jackpots, to “chase” a big win and in the process, lose more than they have actually won. So while keeping a logbook is a necessity for your tax relief, it is an incredible tool for being aware of what and how you gamble.
Of course, I also found that keeping my logbook helped me realize how much I was winning and losing over the year. Casino players tend to use selective memory and tend to remember only the wins and minimize their losses. If you keep a log, it can give you a reality check and an account of the money you spend at the casino. It’s worth the time to do—and who knows—it may save you lots of money in taxes when you hit that Big One.
If you visit a casino more than a few times a year, do keep a logbook. I heard about a player who hit a large progressive jackpot on a New Year’s Eve. She had been losing all year long, but didn’t have any way to prove her losses and ended up paying the full taxes on the jackpot amount.
I know I am in excellent company in advocating keeping a casino logbook. For one of the de nitive words on taxes and gambling, read Jean Scott’s book, Tax Help for Gamblers.
Casinos are required to send a copy of all W-2Gs to the irs, and to give or send players a copy the W-2G with their winnings clearly stated. e W-2G form indicates the name of the casino or gambling venue, the amount won, and any identifying
numbers of the gambling
device the player used
to win. e W-2G must
be signed by the winner
as proof that the correct
Social Security Number
was submitted to the
casino or gambling venue.
Players are required
to list all gambling and
jackpot winnings when
ling income taxes.
Gambling winnings are
taxable income. e irs allows deductions of gambling losses up to the amount of your winnings. And, you can
“Players are required to list all gambling and jackpot winnings when filing income taxes. Gambling winnings are taxable income. The IRS allows deductions of gambling losses
up to the amount of your winnings. And, you can only do this if you have
documentation of your losses.”
January 2009
SOUTHERN CALIFORNIA GAMING GUIDE
Page 33