vpFREE2 Forums

1099's

#1

<<<. He won and was issued a 1099 instead of a W2-G. This meant he was on the hook for the full amount of taxex. He couldnt write off losses against the 1099. He tried hard to no avail to get them to change it to a W2-G.>>>

No need to get it changed. I always total them with my W-2G's and report them under gambling winnings. Most years I just put a note "Includes all W-2G's and gambling related 1099's". Others have advocated this method and I have yet to get an IRS inquiry letter.

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#2

No need to get it changed. I always total them with my W-2G's and report them under gambling winnings. Most years I just put a note "Includes all W-2G's and gambling related 1099's". Others have advocated this method and I have yet to get an IRS inquiry letter.

This may be another area where doing it wrong is unlikely to get
flagged. I've been told that losses can't be deducted against what
income is reported on 1099s.

#3

<<I've been told that losses can't be deducted against what
income is reported on 1099s.>>

That is wrong information as a general “rule.” It depends on what the 1099 is from.

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------------------------------------------
Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
http://jscott.lvablog.com/
UPDATED TAX BOOK
(Download 2015 eBook now)

From: mailto:vpF…@…com
Sent: Monday, April 13, 2015 1:42 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] 1099's

No need to get it changed. I always total them with my W-2G's and report them under gambling winnings. Most years I just put a note "Includes all W-2G's and gambling related 1099's". Others have advocated this method and I have yet to get an IRS inquiry letter.

This may be another area where doing it wrong is unlikely to get
flagged. I've been told that losses can't be deducted against what
income is reported on 1099s.

[Non-text portions of this message have been removed]

#4

<<I've been told that losses can't be deducted against what
income is reported on 1099s.>>

That is wrong information as a general “rule.” It depends on what the 1099 is from.

I was thinking of tournament winnings, drawing winnings, winning a
car, etc. Doesn't a loss have to be due to a bet that's directly
related to the win to be deductible?

#5

This isn’t clearly stated by the IRS, but most tax preparers recommend that you lump 1099s with your W-2Gs if they are related to your “general” gambling activities. For example, you win a VIP tournament you were invited to because of your previous play. You win a drawing that you earned tickets for by playing. You usually don’t need to establish a specific loss is directly related to a specific bet. However, some people occasionally have had to explain this when they were questioned. This seemed to be more of a problem in the past. Nowadays IRS personnel are a little more knowledgeable about gambling issues, but one can never be 100% sure in these gray areas.

This issue is coming up again for those who do regular gambling AND daily fantasy sports betting, in which you can get 1099s. I discuss this in the new edition of the tax book.

···

------------------------------------------
Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
http://jscott.lvablog.com/
UPDATED TAX BOOK
(Download 2015 eBook now)

From: mailto:vpF…@…com
Sent: Monday, April 13, 2015 3:25 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] 1099's

<<I've been told that losses can't be deducted against what
income is reported on 1099s.>>

That is wrong information as a general “rule.” It depends on what the 1099 is from.

I was thinking of tournament winnings, drawing winnings, winning a
car, etc. Doesn't a loss have to be due to a bet that's directly
related to the win to be deductible?

[Non-text portions of this message have been removed]