Gambling Win Loss Statement Taxes

Casinos offer a win-loss statement for their slot players that itemizes coin-in and coin-out, but vary in their player-tracking policies for other types of play. The casino will give you a copy of the gambling win, on Form W-2G and send a copy to the IRS. Absolutely, just make sure it includes all wins and losses separately and is not a combined number. You should show your gambling winnings as income and then your gambling losses as an itemized deduction, if you qualify.

If you gamble, you may not feel like as much of a winner come tax season next year. Changes in the State of Oklahoma tax law a limiting how much you can write off as a 'loss.'

'I see this for Oklahoman's as like the gambling penalty,' said Eileen Robinson, the head accountant at Gardner's Tax Services Inc.

  • Amount of your gambling winnings and losses. Any information provided to you on a Form W-2G. The tool is designed for taxpayers who were U.S. Citizens or resident aliens for the entire tax year for which they're inquiring. If married, the spouse must also have been a U.S. Citizen or resident alien for the entire tax year.
  • Gambling winnings are reported as Other Income on Line 21 of IRS Form 1040. While you may be able to deduct your gambling losses, gambling winnings are not directly offset by gambling losses in your tax return.

In previous years, you could write off your total gambling losses in your adjusted income which is what you can still do for federal taxes, but for Oklahoma state taxes, you can't do that anymore.

Loss

'For federal you have to show in the income on the 1040, your schedule 'A' is where you take your itemized deductions and that's where you right off your gambling losses,' Robinson said. 'In Oklahoma, they limited the amount of itemized deductions you can take, you can take all of your donations but it limits the rest of it to that 17,000.'

This means you'll have to pay income tax for the total amount of big jackpots.

In the past, if you lost money while gambling, then won, you could deduct those losses from your winnings then only pay the tax on the difference.

Gambling win loss statement tax reporting

'Now when you win that money you're going to have to pay the taxes whether you out that money back into the machine or not,' Robinson said.

Something that Robinson says has been an unpleasant surprise for her clients this year.

'They're in shock, most of them didn't know and of course not until we got ready to do their taxes,' Robinson explains.

Statement

It may be too late to make the adjustment this year, but there are ways to prepare for the tax change next season.

Statement

'I'd say 5% of all their winnings needs to be set aside to send in' Robinson said. 'So lets say if you won something you need to make sure you set back enough to be able to pay the taxes for the state and try not to plug that into the machine.'

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Gambling Win Loss Statement Tax Reporting

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Gambling Win Loss Statement Taxes

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