I have seen on this board that many people combine their winnings +
W2Gs + their 1099 Miscs. I started doing my taxes with one of the
popular software programs (no free ad for them) and it put the W2Gs
and winningsw together and the 1099 Miscs separately. So how can you
combine these to write off your losses against the 1099s? Does the IRS
approve of this?
Curt
vegascurt wrote:
I have seen on this board that many people combine their winnings +
W2Gs + their 1099 Miscs. I started doing my taxes with one of the
popular software programs (no free ad for them) and it put the W2Gs
and winningsw together and the 1099 Miscs separately. So how can you
combine these to write off your losses against the 1099s? Does the
IRS approve of this?
I've always summed the two together and reported them as gambling
income, but have briefly noted that I've included the 1099 income
which was derived from sweeps, etc. where casino play was a
requirement for participation. I cite the specific 1099 total so that
it can be matched to what was reported by the casino.
That's never been challenged, but my 1099 income has never amounted to
more than a few hundred dollars. I'd fully expect if a few thousand
or more were involved that this reporting might be challenged. But in
openly disclosing the reporting, the worse case would be that my
return was recalculated without the 1099 offset to gambling income,
with any appropriate interest on the delay in payment added, but no
penalty.
- Harry
A recent Tax Court decision (
http://www.ustaxcourt.gov/InOpHistoric/Tschetschot.TCM.WPD.pdf) contains the
following footnote:
9 Similarly, a casino's decision to issue a Form W2-G,
Certain Gambling Winnings, or a Form 1099-Misc., Miscellaneous
Income, does not affect the nature of the winnings for tax
purposes.
So it would seem the IRS should approve.
[Non-text portions of this message have been removed]
On 2/6/07, vegascurt <vegascurt@yahoo.com> wrote:
I have seen on this board that many people combine their winnings +
W2Gs + their 1099 Miscs. I started doing my taxes with one of the
popular software programs (no free ad for them) and it put the W2Gs
and winningsw together and the 1099 Miscs separately. So how can you
combine these to write off your losses against the 1099s? Does the IRS
approve of this?
A recent Tax Court decision (
http://www.ustaxcourt.gov/InOpHistoric/Tschetschot.TCM.WPD.pdf)
contains the
following footnote:
9 Similarly, a casino's decision to issue a Form W2-G,
Certain Gambling Winnings, or a Form 1099-Misc., Miscellaneous
Income, does not affect the nature of the winnings for tax
purposes.So it would seem the IRS should approve.
This is great material...printed out a copy of the ruling and
keeping in my files...just in case.
Thanks!!
Don the Dentist
--- In vpFREE@yahoogroups.com, "King Fish" <vpkingfish@...> wrote: