Page 6 - February 2013 • Southern California Gaming Guide

Ready for Tax Time?
by Gail Anders
You may not know this, but this year, there was a delay in 2012 income tax ling. Following the January tax law changes made by Congress under the American Taxpayer Relief Act, the IRS announced on January 8th that it planned to open the 2013 ling season and begin processing
individual income tax returns on January 30th.
Since we’re now into February, if you haven’t already begun preparation for your 2012 income tax ling, now is a good time to gather all your tax information. You have until
April 15th this year to le both federal and state income tax returns. But you know how quickly that deadline will come.
Was 2012 a winning and happy year for you at the casino? I hope so. If you haven’t put aside some of your winnings to pay taxes, it may not end up such a happy time. But read on, because you may nd some help in the following tax tips.
Disclosure: I am not a CPA or professional tax preparer, but I o er these tax prep tips based on my own tax experience and research. And the information I present here can be bene cial to your tax bottom line. I play in casinos in Southern California, and have learned how to helpmytaxpreparer—andsavemoney.And,Ibelieve,I’ve kept as much of my winnings as possible.
ere are two key elements in preparing your taxes if you are a casino player: keeping a log of your play throughout the year, and getting win/loss statements from casinos you won and lost in before you le.
Keeping a Log
As I play and win (I usually do) 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 practice to help me keep more of winnings. For the past few years, I’ve won a little more than I lost. Because I had gambling losses to deduct from my winnings, I did 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. And the amount of losses I may deduct cannot be more than the amount of gambling income reported on my tax return.
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. Casinos are required to send a copy of all W-2Gs to the IRS, and to give 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, and that they received their winnings.
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 do this only if you have documentation of your losses. Keeping a log, therefore, is the best way to do this.
Setting Up a Gambling Log
To keep an accurate gambling log, be certain you include:
Log Realizations
I also have two other columns in my log: 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 play. When I started doing this several years ago, I was shocked to notice that on some casino visits I won jackpots and played them all back. So while keeping a log is a necessity for tax relief, it is a great tool for being aware of what and how you gamble, so you can change your playing habits.
Win/Loss Statements
Coupled with your annual gambling log, casino win/loss statements are essential tools for tax preparation. Win/ loss statements, issued by casinos, are estimates of what a casino guest has lost or won during a calendar year based on players club tracking information. e statements are designed to assist players with their annual tax lings, and must be requested from the casino. So, be sure to get your win/loss statement from every casino in which you won a reported jackpot (any win over $1,200) — or even just played. Most casinos have the statements ready by the beginning of each new year.
Some players use win/loss statements in place of a log. But the IRS knows that casinos do not guarantee the accuracy of win/loss statements. Since they are based on players club card tracking, the casino does not know if, on occasion, you play 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 during the year. Win/loss statements are con dential, since all casinos know the importance of protecting their players’ privacy. You have to request the statement, usually in person via a signed form plus ID.
If you don’t already have an annual casino log, start one for 2013. It can be an invaluable tool. And coupled with your casino win/loss statements, both can help to make sure you keep as much as you can of your jackpot winnings!
Gail Anders writes for magazines and online journals and lives in Laguna Beach and New York.
PAGE 6
SOUTHERN CALIFORNIA GAMING GUIDE
FEBRUARY 2013
✦ ✦ ✦
✦ ✦
e casino name and address of where you played e date and time frame 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 withdrawal slips, credit card receipts, etc.).
If you are ever audited by the IRS, and you have a log of your winnings and losses, you will have at least basic records to show when, where, and how much you gambled and won or lost. You also must keep all ATM receipts, cancelled checks or bank statements showing casino transactions to back up your log. Your log has to be as accurate as possible to be credible.
I keep my log on my laptop, in Microsoft Excel, but if you have an iPhone, you can also keep it in the iPhone app GambleTrack. Check it out at gambletrackapp.com. Or you can keep your log in the low-tech, tried and true hand method in a notebook.
I set up my log each year with eight column headers: Date Played, Time, Casino, Casino Address, Game Played, Winnings, Losses, Proof. And I update my log after each and every casino visit.