Page 28 - Southern California Gaming Guide • February 2018

by Alex Winters
In every ritual, a routine is the essential component to the rite. And if paying taxes is a ritual you despise, fellow gambler, then you’re obviously not alone. What if you found out how to make this tithing process less daunting and possibly keep more of your hard earned winnings? If you’re like most people, you probably haven’t begun preparation for your 2017 income tax ling, and now is the best time to start gathering all your tax information.
e ling deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15th date. e IRS reminds taxpayers that a new law requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until February 15th.
If you’re fortunate enough to have won a lot of $1,200 or more jackpots in 2018, the casino has reported them all to the IRS. And since all gambling winnings are taxable income, you have to include them on your tax return. To be clear, I’m not a CPA (Certi ed Public
Accountant), but I can o er these tax tips for gamblers based on my own research and experience.
As far as new tax laws go, there are no changes for reporting casino winnings. Having said that, there are two important elements when preparing taxes as a casino player. First, keep a gambling log every year. Second, play with a player’s club card and get your win/ loss statements from casinos you’ve played at. If you’re not familiar with how casinos report your winnings, we’ll start there.
Casino Win/Loss Statements
Casino win/loss statements are essential tools for tax preparation. Win/loss statements, issued by casinos, are estimates of what a casino guest has won and lost during a calendar year based on players club tracking information. Unless you have signed up for a casino’s players club, there is no way to track your wins and losses. e statements can assist players with their tax lings, and must be requested from every casino. Be sure to get your win/loss statement from every casino in which you won a reported jackpot — or even just played.
The Dreaded 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.
It’s mandatory that casinos send a copy
of all W-2Gs to the IRS, and to give
players a copy with their winnings
clearly stated. e W-2G is signed by the winner as proof of the correct SSN and that said winner received their 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.
The Gambling Log
As I play, win and unfortunately lose, I keep the W-2Gs I get from casinos in one place, along with all ATM receipts, or other receipts showing the funds I used to play while at the casino. I then note all my wins and losses in my gambling log with the date, time and
casino I played. In 2017, I won a lot more than I lost. And because I had gambling losses to deduct from my winnings, I will not have to pay as much in taxes. My CPA always reminds me that I can deduct gambling
losses only if I itemize the deductions.
Hopefully you will never be audited by the IRS.
But if you are, and you have a log of your casino wins and losses, you’ll have the basic records to show when, where, and how much you gambled and won or lost. It’s very important your logbook is as accurate as possible to be viable.
To help with your log’s accuracy, be certain to include:
♦ e casino name and address of where you played ♦ e date and time frame of when you played
♦ e type of game (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.)
I set up my log each year with eight column headers: Casino, Casino Address, Date Played, Time Played, Game Played, Winnings, Losses, Proof. And I always update my log after each and every casino visit.
I keep my log on an Excel spreadsheet, but you can also keep a log on your phone or in a dedicated notebook. ere are apps for phones that are very helpful and convenient, including Gamble Track for the iPhone, and Gambling Tracker for Android phones. It doesn’t matter what method you use as a log, as long as you keep one.
Be a Better Bettor from Your Gambling Log
I’ve always tried to learn from my play, so I started to include two other columns in my gambling log. One for the amount of money (bankroll) I gambled 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 deduction reasons, only for my informational purposes. I added these data columns because I remembered that I sometimes won jackpots and ended up playing them all back.
While keeping a log is a must for tax relief, it’s also a great opportunity to be aware of how you gamble and how much you gamble, so you can change your playing habits and become a more consistent winner!
If keeping more of your hard earned winnings sounds like something you’d be interested in, then start your annual gambling log for 2018. Coupled with your casino win/loss statements, both will prove to be major assets in keeping as much of your jackpot winnings as possible and maybe help to make you a better bettor! Best of luck in 2018 and may you be blessed with many W2-G’s!
Alex Winters lives in Las Vegas and is an avid sports fan and gambler.
PAGE 28
SOUTHERN CALIFORNIA GAMING GUIDE
FEBRUARY 2018