Last year I reported over $25,000 in W2-G's and showed the same amount as losses on Schedule A without sending along any kind of log or back-up. IRS said nothing. They sent me my refund. I've done the same in years past and they have NEVER called me up for an audit. I know of people who have reported as much as $100,000 in wins and shown the same as losses and they have not been audited.
Originally Posted by 7777
BUT.....to be on the safe side, you should always have a back up log. Checks for cash dated on the day you leave for your trip and ATM receipts can be used. Keep your hotel receipts to show that you were actually in LV or wherever you gambled. - I always have a paper trail available for proof if IRS should ask.
You are SUPPOSED to report ALL wins even if you don't get a W2-G. Nobody does, but you're supposed to. LOL. Keeping a log of all the money you put into a machine and the money you win on it - include type of machine and serial number - will give you a more accurate number of the actual winnings and is what IRS will be looking for in case you do get audited. This can be a time consuming process and takes the fun out of playing slots, IMO.
There is a formula for table winnings with which I am not familiar since I don't play tables much, but it is determined on the amount of the bet times what is won. Some table winnings don't count toward taxes. Maybe someone else on the board knows how this is figured.
But the facts are, IRS lets you get by with a lot of winnings before they start tapping you for an audit. As long as you don't have something else on your return that flags you, your gambling will probably get by unnoticed.
Life ain't always beautiful, but it's a beautiful ride.