Some of you may know that I write the Low Roller gambling advice
column for the Sun Herald in Biloxi, MS. Whenever the subject is
video poker, Tom posts the column here on vpFREE. Lately, the Sun
Herald's web site for At The Casinos has been down due to some
technical problems, so no postings here lately. But most of the
columns for the last 6-8 weeks have been about poker and non-VP-
related subjects, so nothing lost. Yesterday's column was about
Jean's new book, "Tax Help," and I tho't some of you may want to
read it. So, here's the text of the column.
LOW ROLLER
Avoid tax pitfalls
Yes, I realize that I wrote a book review just two weeks ago, but
the subject matter of this one is very timely, and I think you
should know about "Tax Help for the Frugal Gambler" by Jean Scott
and Marissa Chien. The book started out as a chapter in Scott's new
book, "More Frugal Gambling," but by the time the material was
fleshed out, it was evident that the chapter needed its own book
title.
Each author boasts her own set of credentials. Scott, as you
probably know, is the gambling grandma who became known as the Queen
of Comps. In 1998, she wrote "The Frugal Gambler" and followed it in
2003 with "More Frugal Gambling." Before she and Brad moved to Las
Vegas, they filed taxes as recreational gamblers and had to deal
with W-2Gs, 1099s, wins, losses, comps, drawing prizes, etc. Later,
Scott incorporated her writing, lecturing and gambling into a
business and now files as a professional gambler. She's familiar
with both sides of that fence.
Marissa Chien is a certified tax consultant, an Enrolled Agent,
Scott's tax accountant and, by the way, a fellow gambler. The two
authors work well together and create a powerful combination of
experience, insight, clarity and good solid advice.
Although most people would rather take a beating than wade through a
tax guide, surprisingly, "Tax Help" is not as dry a read as it
should be. That may be because I kept relating it to my own set of
circumstances and to questions that gambling buddies and I had
already discussed. Questions that I certainly didn't have the
answers for.
Questions like: why can't I simply report my net winnings; why do I
have to report my gross winnings and then deduct my losses on
Schedule A? How is gambling "session" defined and why is it
important? What kind of records do I need to keep? How do I report
cashback and comps? What do I do with tournament and drawing prizes?
What if I'm a poker player? Is it better to file as a recreational
gambler or as a professional? What do I do with these state taxes
that casinos have been withholding? You may be surprised at the
answers.
Let's face it, taxes are a big mystery to most people, and gambling
taxes are an even bigger mystery. Scott and Chien have done most of
the legwork for you and talked to former and present IRS agents,
many tax preparers and accountants and lawyers. They even talked to
federal gaming specialists in Nevada. That's right; there's actually
a "gaming specialist" position in the IRS' Las Vegas office.
And even though Scott and Chien deliver on quite a few answers, they
are also the first to admit that there are many more questions left
unanswered because not even IRS agents agree among themselves and
because personal circumstances differ. You should always consult a
tax professional, but familiarizing yourself with the issues goes a
long way toward avoiding many pitfalls.
The book is divided into three major parts federal taxes, state
taxes, and an appendix filled with reference materials, resources,
sample forms and even a United States Supreme Court decision.
When it comes to tax laws and regulations, the only thing constant
is change, but "Tax Help for the Frugal Gambler" will most likely be
a useful reference guide for many years to come
(www.frugalgambler.biz, $25.00).
Until next week, aces and faces to you.
Linda in Biloxi