Tulsa Gamblers Should Get Prepared Early For Tax Season

Wednesday, January 14th 2015, 11:16 pm
By: News On 6

Every penny earned by gambling, regardless of if it's at a casino or convenience store, has to be reported on your tax return; but there are ways to make up some of the lost money this tax season.

The odds are never in your favor at a casino, but if you've been both up and down this year, your winnings might be able to offset some of your losses on your tax return.

If Lady Luck was on your side in 2014, you have to report it to the IRS.

If you gamble at a casino, depending on how much you won at the slot machine or card table, the casino could've already reported your earnings to the IRS, according to CCK Strategies CPA, Jeffrey Frable.

"The slot machines and bingos are more than $1,200. Keno winnings are more than $1,500. If you're in a poker tournament, and you win more than $5,000, it's at those points in time that the casinos are going to issue the W2-G," Frable said.

The “G” in W2-G stands for gambling. Those who gamble and don't fill that out could get a letter from the IRS.

"If they don't see it on your tax return, they will send you a communication and they will automatically assume you have no deductions and they will assess the full amount of tax on those winnings," Frable said.

Deductions can help off-set gambling expenses.

"You're allowed to deduct losses up to the extent of your winnings," he said.

Meaning, if you spent $5,000 gambling last year, and won $3,000, you could deduct $3,000 as an itemized deduction.

Some gambling winnings, like sweepstakes, are subject to a flat 25 percent tax; and prizes - anything from a car to a cruise - are taxed at market value.

Frable said now is the time to get documentation for all your gambling.

"The more organized you are on this type of information, the better," he said.

If you don't have all your gambling receipts and documentation, you can look the expenses up on your credit card or debit bill.

If you're a frequent gambler and have a player's card, the casino might be able to help you find that documentation.