Page 24 - February 2016 • Southern California Gaming Guide

Casino Player Tax Tips
Are You Ready for Tax Time?
by Gail Anders
If you haven’t begun preparation for your 2015 income tax ling, now would a good time to gather all your information. According to the IRS, the ling deadline to submit 2015 tax returns is Monday,
April 18th, rather than the traditional April 15th date. Since Washington, D.C., will celebrate Emancipation Day on April 15th, it pushes the deadline to the following Monday for most of the nation. (Due to Patriots Day, the deadline will be Tuesday, April 19th, in Maine and Massachusetts.) e due date for California state tax returns this year is also April 18th.
Hopefully, you won lots of jackpots at the casino in 2015. If your jackpot was $1,200 or more, the casino reported it to the IRS. And since all gambling winnings are taxable income, you have to include them on your tax return. Before you get anxious about how much tax you may have to pay on your casino winnings, read on. You may nd some help with the following gambler’s tax tips.
I am not a CPA or professional tax preparer, but I o er these tax tips for casino players based on my own tax experience and research. e information I present here has been bene cial to my own tax bottom line, and may be to yours.
I have found two key elements helpful in preparing taxes if you are a casino player: Keeping a gambling log throughout the year. And, assuming you play with a players club card, getting win/loss statements from casinos in which you played. Let’s start with how casinos report your winnings.
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 (ssn) 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 that they received their winnings.
When ling income taxes,
individuals are required to
list all gambling and jackpot
winnings. Gambling winnings
are taxable income. But
here’s an important point: e
IRS allows deductions of your losses up to the amount of your winnings. And, you can do this only if you have documentation of your losses. Keeping a gambling log, therefore, is the best and only way.
Gambling Log
As I play and win and lose each year, I keep the W-2Gs I receive from all casinos in one place along with any ATM receipts, or other receipts showing the funds I used to play. And I keep a gambling log
of all my wins and losses. For the past few years, I’ve won a little more than I lost. But because I had gambling losses to deduct from my winnings, I did not have to pay as much tax. My tax preparer always reminds me that I may deduct gambling losses only if I itemize deductions.
If you are ever audited by the IRS, (hopefully, never) 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.
Your logbook has to be as accurate as possible to be credible.
To ensure your log’s accuracy, be certain to include the following:
♦ ♦ ♦
♦ ♦
e casino name and address of where you played e date and timeframe 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, etc.)
PAGE 24
SOUTHERN CALIFORNIA GAMING GUIDE
FEBRUARY 2016
I keep my log on my laptop, in Microsoft Excel, but if you have a smart phone, there’s an easy way to keep track of your play. For the iPhone, you can keep a gambling log on the app Gamble Track. For
Android system phones, there’s an app called Casino Tracker. I have not used either app, but I hear from other casino players that they are very convenient. Or you can keep your log in the low-tech hand method in a notebook. However you keep a log doesn’t matter, as long as you keep one.
Continued on page 25...