Gambling and Taxes

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    NamecipS's Avatar
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    Gambling and Taxes

    Where can I find details on taxes from gambling?

    Say I won $2k on a slot machine, what will the tax requirement be? Can the win be totally offset by an equivalent amount of losses?
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    I think you have to claim it and they will take something like 30% of it. I believe this is what I was told.

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    Quote Originally Posted by NamecipS View Post
    Where can I find details on taxes from gambling?

    Say I won $2k on a slot machine, what will the tax requirement be? Can the win be totally offset by an equivalent amount of losses?
    Gambling losses are tax deductible up to your gambling winnings. So if you have $2,000 in winnings, and $1,500 in losses, you'll have to claim $500. If your losses exceed your winnings, none of your winnings will be taxable.

    You have to report all winnings on your tax returns though. On your itemized deductions schedule you can claim a deduction for losses for the equivalent amount.

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    Will never be a dollar for dollar offset to be honest. You cannot just claim losses on Schedule A, you have to have proof that you lost the amounts.

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    Quote Originally Posted by Jack of all Trades View Post
    Will never be a dollar for dollar offset to be honest. You cannot just claim losses on Schedule A, you have to have proof that you lost the amounts.
    While technically true, you only have to prove it if the IRS by chance picks your return for an audit.

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    Quote Originally Posted by UKMustangFan View Post
    While technically true, you only have to prove it if the IRS by chance picks your return for an audit.
    How would you prove this though. It's not like the dealer gives you a receipt that says you got hosed.

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    Not a gambler. Do you get a 1099 when you cash in your winning chips?

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    Quote Originally Posted by Irish Cat View Post
    How would you prove this though. It's not like the dealer gives you a receipt that says you got hosed.
    That, I have no idea.

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    Quote Originally Posted by Clyde View Post
    Not a gambler. Do you get a 1099 when you cash in your winning chips?
    You get a tax form if it's above a certain amount, yes.

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    Quote Originally Posted by Jack of all Trades View Post
    Will never be a dollar for dollar offset to be honest. You cannot just claim losses on Schedule A, you have to have proof that you lost the amounts.
    Friend suggested buying and keeping losing lottery tickets or if going to a horse track, keep losing tickets and maybe pick some others up off the ground.

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    Quote Originally Posted by NamecipS View Post
    Friend suggested buying and keeping losing lottery tickets or if going to a horse track, keep losing tickets and maybe pick some others up off the ground.
    There have been cases where the IRS denied losing tickets that had smudges from being on the ground and stepped on. Wouldn't recommend it.

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    Quote Originally Posted by UKMustangFan View Post
    While technically true, you only have to prove it if the IRS by chance picks your return for an audit.
    Can you say Red Flag.

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    Quote Originally Posted by NamecipS View Post
    Friend suggested buying and keeping losing lottery tickets or if going to a horse track, keep losing tickets and maybe pick some others up off the ground.
    Correct on all but the picking up losing tickets off the ground. Not sure what the big deal is about trying to fully offset winnings to be honest. If I won $ 2,000 why in heck do I want to try and lose it all back?

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    Quote Originally Posted by Jack of all Trades View Post
    Can you say Red Flag.
    Very unlikely the IRS is going to pick a return with $2k in gambling winnings and losses to audit.

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    Quote Originally Posted by Jack of all Trades View Post
    Correct on all but the picking up losing tickets off the ground. Not sure what the big deal is about trying to fully offset winnings to be honest. If I won $ 2,000 why in heck do I want to try and lose it all back?
    Well, there's no way to claim losses on a blackjack, craps or roulette table. Why should you pay taxes on slot machine winnings when you actually lost more over the year than you won?

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