Jeep,
I had been itemizing for many years and off-setting casino wins with losses on Schedule A. Now, with the much larger standard deduction, it is now in my best interest not to itemize (even with the same adjusted gross income) - so I didn't itemize for 2018. Since any W-2Gs that I had received in 2018 were reported by the casinos to IRS , I had to include that total amount as "other income" on form 1040. Otherwise, the IRS computer would have kicked out my return for audit.
So I ended up paying taxes on the sum of the W-2Gs in 2018. Based on my review of the tax law and court precedent, I knew that I could have made the case that the gross W-2G amounts on the "session days" where they did occur could perhaps be offset with other losses on that same session day. But the hassle of trying to explain that to the IRS wasn't worth it based on my situation. So I just paid it.
The lesson learned is to try and avoid W-2Gs if you plan to take advantage of the new standard deduction. Therefore, for the same denomination bet, game type and pay table, I would move to multi-hand (if available) to avoid most W-2Gs. For example, play 100-play 9/6 JOB .05 ($25 bet) instead of single line 9/6 JOB $5 ($25 bet). Same bet size and EV - but far fewer W-2Gs over the course of a year. I know that you can follow this strategy in Reno, but the options are likely limited in other areas.
Hi all
My accountant just told me this. I do long form. I hope accountant wrong. But, having wrong info would
not make me happy either. The old damed if right, damed if wrong.
Cheers.......Jeep
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Posted by: Walter Hamilton <walterhnri@aol.com>
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