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Tax time is across the corner. When you were one of the crucial Lucky individuals who won money on the Casino, you may also find that you're not so “Lucky” whilst you fill out your taxes. Uncle Sam likes to share for your joy by claiming a bite of your winnings for himself. That may be exactly what happens to many “Winners” each April 15th, who don’t keep a gambling diary or logbook.
The IRS requires the casinos to report any wins over $1,200 on slot and video poker machines or other games reminiscent of keno lottery or horse racing. If in case you have a win equal to or more than $1200, you'll be issued a W-2G form. This type lists your name, address and social security number. The casino would require proper identification before you might be paid your jackpot. Because of this you wish to always carry a sound type of identification with you whilst you visit the casino.
A copy of the W-2G goes to the IRS and also you are required to list these winnings when filing your income tax. The law lets you deduct gambling loses as much as the volume of your winnings. You'll be able to only do that when you have documentation of your loses. Keeping a diary or logbook, is the best way to do that.
A proper log should contain; 1) The kind of game and serial selection of the machine you played. 2) The date and placement where you played. 3) Your wins and losses for every session or game. 4) Additional evidence of gambling activities. Your log book need to be accurate and may be filled out as accurately as possible. I LOCATE it best to record my sessions in a small notebook which I carry with me to the casino. I then transfer this right into a spreadsheet on my computer after I get home.
Most often the IRS will accept this log however IT'S NOT THAT I AM a CPA and the most productive advice I WILL provide you with is to refer to a qualified should you do have a large win on the casinos.
If you don’t keep a log book already you would like to start along with your next visit to the casino. Many players wait until they do hit a jackpot before they even consider keeping one. I once examine a player who finally hit a big progressive jackpot. It happened on New Year’s Eve. He were losing throughout the year but he had no documentation to prove his losses and was required to pay taxes at the full amount.
There is one more reason to maintain a log book that doesn't have anything do with taxes. It’s to maintain track of your personal personal wins and losses. Some players are likely to remember only the wins and neglect or minimize their losses. It’s not uncommon to listen to players say they broke even or had slightly loss on the end of the year. Keeping a log can assist you place playing in perspective and provides you a decent account of the money you're spending on your casino entertainment. Knowing that you're keeping an eye on your losses may keep you from getting over excited and losing greater than you'll have during your visit.
If you play a game that requires skill akin to video poker, live poker or blackjack it will be significant to maintain a log of your playing sessions. This log might help you evaluate your skill level. In case you are constantly having losing sessions then you definately might need to do some more studying of the way to play properly. I'VE a separate section in my log for each game that I play. This helps me to have a correct accounting on the end of the year each game so I DO KNOW which games was probably the most profitable.
Many player think that keeping a log is time consuming or unpractical. In fact it takes just a few minutes to do and you'll be glad you probably did whilst you hit the massive one.
Ben Franklin said, “The only sure thing is Death and Taxes.” All of us must pay taxes but we don’t must give Uncle Sam any further than we need to.
Until next time, remember: "Luck comes and goes...Knowledge Stays Forever!"
Read More... [Source: About.com Casino Gambling: What's Hot Now]
