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W2s, taxes and tips

pesach kremen wrote ...

Subject: Re: $1200 W2G

It would encourage mor e dishonesty as now more jackpots wouldn;t require paperwork. Some would choose to not report
jackpots which formerly they had no choice about reporting. In either case winds are reporteable and losses may be
deducted against them when you itemize, whether there is paperwork or not. I do make a note on the form of the amount of
the tip given the staff on W-2G wins and give this info to my accountant witht he casino statements and my records of wins
and losses. If it's a major win where th etip would be larger than the standard $10-$20 I have th erecipient sign a piece
of paper acknowledging receipt of the tip.

Pesach, it sounds like adhere to " All wins are taxable" but you make a note of the size of the tip you pay on your W2s. Do you deduct this tip amount as a loss? I don't think the IRS will buy that. Even if you file professionally, I think tips would be hard to take as an expense.

JZ

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To answer the question - the small tips I ignore the deduction, the large ones I put on the W2-G or other paper and have the recipient sign them. I give this along with all my personal records and my W-2's to my accountant. I use tax planning to minimize my taxes (paying state estimated tax in 2005 so as to be able to deduct it when I file my return for 2005 in 2006 rather than wait until 2006 to pay it, as an example,) pay student loan interest to the max, use 401K's, etc - The biggest problem most have is failing to keep records - Reporting all and filing professionally has major advantages. You can spend all you make without a problem, the return is porfessional and easily understandeable to the IRS and state, you get all the legal deductions you are entitled too and if there is a problem in the calculation of the taxes you have a professional to assist you.

"John.G.Zaroff" <John.G.Zaroff@delphi.com> wrote:
pesach kremen wrote ...

Subject: Re: $1200 W2G

It would encourage mor e dishonesty as now more jackpots wouldn;t require paperwork. Some would choose to not report
jackpots which formerly they had no choice about reporting. In either case winds are reporteable and losses may be
deducted against them when you itemize, whether there is paperwork or not. I do make a note on the form of the amount of
the tip given the staff on W-2G wins and give this info to my accountant witht he casino statements and my records of wins
and losses. If it's a major win where th etip would be larger than the standard $10-$20 I have th erecipient sign a piece
of paper acknowledging receipt of the tip.

Pesach, it sounds like adhere to " All wins are taxable" but you make a note of the size of the tip you pay on your W2s. Do you deduct this tip amount as a loss? I don't think the IRS will buy that. Even if you file professionally, I think tips would be hard to take as an expense.

JZ

···

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Note: If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer. Thank you.

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

TurboTax works as well...and...it is fun (doing your taxes is almost
like a video game). LOL

.....bl

--- In vpFREE@yahoogroups.com, pesach kremen <royalflush2222@y...>
wrote:

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I give this along with all my personal records and my W-2's to my >
accountant.