If your yearly losses are greater than your yearly gains, there will be no
tax due. If you keep your card in your machine, the casinos can send you a
print out at the end of the year showing your losses for the year. That
will be your back up in case you are ever audited.
Unfortunately, I routinely have lost more than I win so I have yet to pay
any taxes on my jackpots (I wish it were otherwise).
B. Stewart
In a message dated 8/26/2009 8:15:46 A.M. Pacific Daylight Time,
cognoscienti@gmail.com writes:
So, I was playing in an Indian Casino when my friend hit a jackpot
playing on my money. The slot attendant was behind us at the time and
wouldn't let me sign for the jackpot. But he didn't have his SS#, so
they wont release the jackpot or W2, until we go back with his SS#.Now, I'm trying to decide between him issuing me a 1099 form for the
jackpot or giving the casino a 5754, telling them to pay me instead.
Obviously, the 5754 is riskier to use at the casino. But if I have him
issue me a 1099, is he still going to have to claim the W2-G on taxes?
He takes a standard deduction, so I don't know where the 1099 he gives
me takes off from. And if he doesn't put any winnings on the W2-G line
of his 1040 form, will that force a paper audit, even if he includes
the 1099 in his tax submission?
Your friend can attach a note that the W-2G was issued in error and adjust
the full amount off, but that may still trigger a letter audit. Deducting
the amount as a gambling loss will not work as he takes the standard
deduction.
If you stand your ground the casino eventually has to give you the W-2G.
Your friend cannot legally sign the W-2G, which states at the bottom under
penalty of perjury the money belongs to him. If you hand them the
filled-out
5754 that may help. It may take awhile and you may need to hire a lawyer to
send them a letter.
Cogno
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