This isn't clearly stated by the IRS, but most tax preparers recommend that you lump 1099s with your W-2Gs if they are related to your "general" gambling activities. For example, you win a VIP tournament you were invited to because of your previous play. You win a drawing that you earned tickets for by playing. You usually don't need to establish a specific loss is directly related to a specific bet. However, some people occasionally have had to explain this when they were questioned. This seemed to be more of a problem in the past. Nowadays IRS personnel are a little more knowledgeable about gambling issues, but one can never be 100% sure in these gray areas.
This issue is coming up again for those who do regular gambling AND daily fantasy sports betting, in which you can get 1099s. I discuss this in the new edition of the tax book.
------------------------------------------
Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
http://jscott.lvablog.com/
UPDATED TAX BOOK
(Download 2015 eBook now)
From: mailto:vpFREE@yahoogroups.com
Sent: Monday, April 13, 2015 3:25 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] 1099's
><<I've been told that losses can't be deducted against what
>income is reported on 1099s.>>
>
>That is wrong information as a general "rule." It depends on what the 1099 is from.
I was thinking of tournament winnings, drawing winnings, winning a
car, etc. Doesn't a loss have to be due to a bet that's directly
related to the win to be deductible?
[Non-text portions of this message have been removed]
Posted by: "Queen of Comps" <queenofcomps@cox.net>
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