It’s important for casino goers to be prepared when tax season rolls along if you have gambling winnings to report. If you have kept the proper records and are eligible to itemize, you will be able to offset gambling winnings on your federal return if you can prove losses up to but not surpassing the amount that you must claim as winnings.
RS publication 529 gets down to specifics when it comes to the various forms of gambling income and what kind of record keeping is expected of players. Let’s examine six categories in an effort to help you be better prepared for next tax season in case you weren’t diligent in 2010.
SLOT MACHINES: A record of the machine number and all winnings by date and time the machine was played. All of this information will be included on the Form W-2G that you are issued for a casino jackpot of $1,200 or more. If you want to be really serious, keep your own records of the data every time you win a substantial amount.
TABLE GAMES (blackjack, craps, poker, baccarat, roulette, etc.): The number of the table at which you were playing plus casino credit card data indicating whether the credit was issued in the pit or at the cashier’s cage. This doesn’t apply to average players, but it certainly could impact high rollers. Again, if you are a recreational player who buys in for a hundred bucks or so, it can’t hurt keeping your own diary of the date and time you played, the name of the casino, the game and table number, the amount of your buy-in and what you cashed out for.
BINGO: A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Supplemental records include any receipts from the establishment at which you played. Here’s a category that can hit home to a lot of folks in the Chicago-area, even if you don’t go to casinos or the racetracks. Bingo for charitable purposes is legal in Illinois. It is played on a regular basis at many fraternal organizations, churches, and bingo parlors. If you’re a serious bingo player and you want to be prepared in the event you ever win big, you’ll thank yourself if you’ve kept proper records of your gaming sessions and saved the paperwork.
HORSE RACING: A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack. The pari-mutuel form of wagering at racetracks makes record keeping easy. Simply make a habit of stapling all of your losing tickets, winning receipts, and all other paperwork associated with your day at the races to that day’s official track program and keep a file of them. The IRS will be happy and you’ll be prepared when the time comes for you to prove your claims with documentation. Advances in betting technology make this task much easier today than years ago.
LOTTERIES: A record of ticket purchases, dates, winnings and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements. If you play the lottery with any degree of regularity, make a habit of not throwing away your losing tickets, including instant scratch-off tickets, daily game tickets, and other games.
