Lisa, that's a great question and on the surface it does not make sense why they want it done that way. My advice is to pick up a copy of the book. I did a few years ago and think it's a must read for anyone who enjoys gambling. My friends make fun of me whenever I log my win/loss every time I leave a table/machine but they simply don't understand the potential tax issues.
Previously I only played blackjack so while I may have one thousands at a time there was never any government forms to fill out, however now I am on my quest for my first royal flush and I know that I will be filling out a form eventually...which will mark the first year that I will have to report my gambling wins/losses.
--- In vpFREE@yahoogroups.com, "Lisa" <viajo1964@...> wrote:
>
> Just curious as to how that adds up to a DIFFERENT number than totaling the
> year and then adding or subtracting? I am not doubting you at all just
> saying that the IRS seems to want MORE paperwork rather than less? Idiotic…
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> Lisa
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> <<Not everyone who gambles is required to report gambling activity on their
> return. The IRS only wants to know about WINNINGS.>>
>
> Sorry, but this is very dangerous misinformation. From "Tax Help for
> Gamblers":
> "Many people think they understand the gambling-income concept. "Hey, I'd be
> glad to report income for a year in which I actually won money gambling, but
> that hasn't happened yet." What they don't understand is that the IRS is not
> talking about one net win-or-loss figure at the end of the tax year, but
> win/loss figures for individual gambling sessions. They say: You cannot net
> out your gambling for the year. You must add up all the winning sessions and
> all the losing sessions separately. To emphasize this, the IRS puts this, in
> plain non-technical easy-to-understand language, in the instructions that
> come with your tax forms: You cannot reduce your gambling winnings by your
> gambling losses and report the difference."
>
> True, most casual gamblers do not report their gambling action. But if you
> ever get even one W-2G, you appear on the IRS radar - and will have to start
> reporting your gambling action. This can cause the uninformed a lot of grief
> - that is why I wrote the tax book, to help you know the facts and how to
> navigate those rough IRS waters!!!!
> ________________
> Jean $¢ott, Frugal Gambler
> http://queenofcomps.com/
> You can read my blog at
> http://jscott.lvablog.com/
>
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