Page 27 - February 2011 • Southern California Gaming Guide

It’s That Time of Year...Taxes!
by Gail Anders
If you haven’t started your 2010 tax preparation, now is the time. is year, you have until April 18th to le your federal income tax. e traditional tax return ling deadline is April 15th of each year, but the Internal Revenue Service (irs) has approved April 18, 2011 as the tax ling deadline for 2010 Tax Returns and extension requests, in observation of Emancipation Day in the
District of Columbia. April 15th is still the date for ling State income tax returns.
I hope 2010 was a winning year for you at the casino. I am not a cpa or professional tax preparer, but I play in casinos in Southern California, and have learned how to help my tax preparer. And in the process, I believe I’ve helped to keep as much of my winnings as possible.
ere are two key elements in preparing for your taxes if you are a casino player: keeping a logbook of your play throughout the year, and getting win/loss statements from casinos before you le.
The W-2G Form
As most gamblers know, the irs requires casinos to report on a w-2g form all players’ jackpots of $1,200 or more on slot machines or other casino games. e w-2g form lists your name, address and Social Security Number (ssn) plus other pertinent information regarding your win. When you win a jackpot of $1,200 or over, casinos require proper identi cation and your ssn before they pay you. 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 ssn they give to the casino is valid and is, indeed, their ssn.
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 must be signed by the winner as proof that the correct ssn was submitted to the casino or gambling venue and that they received their winnings.
Keeping a Logbook
As I play and win (hopefully) each year, I keep w-2gs I receive from all casinos in one place, and I keep a log of all my wins and losses. I’ve been doing this now for years, and it’s probably the best thing I’ve done to help me keep more of my winnings. is year, I won a little 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. My tax preparer always reminds me that I may deduct gambling losses only if I itemize deductions. e amount of losses I deduct may not be more than the amount of gambling income reported on my return.
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
February 2011
losses up to the amount of your winnings. And, you can do this only if you have documentation of your losses. Keeping a logbook, therefore, is the best way to do this.
Setting Up a Logbook
To keep an accurate logbook, be certain you include the following:
✦ e casino name and address of where you played
✦ e date 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 withdrawal slips,
credit card receipts, etc.)
If you are ever audited by the irs, and you have a logbook
of your winnings and losses, you will have the basic records to show where, when, and how much you gambled and won or lost. 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 set it up with eight column headers: Date Played, Time, Casino, Casino Address, Game Played, Winnings, Losses, Proof. I update my logbook after every casino visit.
Logbook Revelations
I also have two other columns in my logbook: 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. When I started doing this a few years ago I was shocked to notice that on certain casino visits I would win jackpots and play them back! ere is a tendency for casino players, particularly those who have won large jackpots in the past, 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 tax relief, it is an incredible tool for being aware of what and how you gamble.
Win/Loss Statements
Coupled with your yearly logbook, casino win/loss statements are essential tools for tax preparation. A casino
win/loss statement may be one of the most important communications you have with the casinos you frequent. Win/loss statements are estimates of what an individual casino customer has lost or won during a calendar year
based on player tracking information. ey are designed to assist casino players with their annual tax lings, and must be requested from the casino.
Some players use win/loss statements to take the place of detailed gambling session records—logbooks— which casino players are supposed to keep according to the irs, and hardly anyone does. If they have been audited, then they know better.
Casinos do not guarantee the accuracy of win/loss statements, as they are based on players club card tracking. After all, the casino does not know if you play, on occasion, without your card. But the information is very helpful to casino players who need evidence of losses to o set documented winnings that were reported to the irs via w-2g forms during the year.
If you play consistently at the same casino or casinos, you no doubt have a relationship with the casino’s players club. If that’s the case, call your casino host or players club and request your win/loss statement. ey are kept con dential, as all casinos know the importance of protecting their players’ privacy. You may have to request the statement via a signed form plus id in person.
You can even request your statement online from some casinos.
Most casinos will tell you that player tracking information was not intended for tax reporting and that the irs recommends a daily diary of gaming activity with suggested pertinent information.
So, get ready for tax time! Use these invaluable tools— your casino logbook and win/loss statement—and make sure you keep as much as you can of your jackpot winnings!
Gail Anders writes for travel magazines and lives in Laguna Beach and New York.
SOUTHERN CALIFORNIA GAMING GUIDE
PAGE 27