Page 12 - February 2014 • Southern California Gaming Guide

Tax Tips for Casino Players
by Gail Anders
Was 2013 a winning year for you at the casino? I hope so. But if you haven’t put aside some of your winnings to pay taxes, it may not be such a happy time. However, read on, because you may nd some help with the following tax tips.
Disclosure: I am not a CPA or professional tax preparer, but I o er these tax tips based on my own tax experience and research. And the information I present here can be bene cial to your bottom line. I play in casinos in Southern California, and have learned how to help my tax preparer. And, I believe, I’ve kept as much of my winnings as possible.
Since it’s February, now would be 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.
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 played in before you le.
Keeping a Log
As I play and win each year, I keep the W-2Gs I receive from all casinos in one place, and I keep a log of all my wins and losses. 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
e 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 lists your name, address and Social Security Number, plus other information regarding your win. Casinos are required to send a copy of all W-2Gs to the IRS, and to give players a copy 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 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 deduct your losses only if you have documentation of them. Keeping a log is the only way to do this.
Setting Up a Gambling Log
To keep an accurate gambling log, include the following:
♦ e casino name and address of where you played
♦ e date and time frame of when you played
♦ e type of game you played
♦ e amount(s) you won and/or lost for each session
♦ 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, (I hope you never are) and you have a log of your winnings and losses, you will have the 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 logbook.
Your logbook 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 Casino Gambling Tracker. ere is also an Android app called Casino Tracker. Or you can keep your log in the low-tech, written 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.
Log Extra Benefits
I also have two other columns in my log: one for the amount of my gambling stake for each casino trip; and the other for the amount I left the casino with. ese two columns are not for the IRS or potential tax relief, but so I can be aware of how I play. When I started this log several years ago, I was shocked 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 also a
great tool for being aware of 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 where you won a reported jackpot — 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 protect their players’ privacy. You have to request the statement usually in person via a signed form plus ID.
If you don’t already keep a gambling log, start one for 2014. 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. Here’s to a lucky 2014!
Gail Anders writes for magazines and online journals and lives in Laguna Beach and New York.
PAGE 12
SOUTHERN CALIFORNIA GAMING GUIDE
FEBRUARY 2014