how do you keep track of your gambling losses if you only play the slots?

Question

I often go to vegas and generally play the slots. I come with cash wihich I remove from an atm, so how can I prove that I lost that money gambling? I just learned that I can claim them on my taxes but I don't know how to keep track of the money I spend (lose).

Answer 1

I am a professional gambler so i can answer this based on what my accountant says...

If you are a casual gambler, you must claim all winnings on your taxes, and pay taxes on them. The great part is, you can also deduct losses. So if you win $1,000 and lose $500, you only have to pay tax on $500.

There is a catch -- you cannot claim losses greater than your wins. So if you won $1000, and lost $2000, you have a net loss of $1000. Unlike other losses on investments - you cannot write it off as a loss. Therefore, from a tax perspective you claim "0." No wins no losses.

If you are a professional gambler, the same applies, but you can also deduc expenses like flights and hotels, but you also have to prove you are a professional. I can explian in further detail if that interests you.

Answer 2

If you have a card that does track your play and you can obtain that info from the casino. Otherwise...

When you win jackpot over $1,200 on slot machines or have other big wins at keno or the racetrack, you will receive a W-2G form. A copy of this goes to the IRS and you are required to list these winnings when filing your income tax. The law allows you to deduct gambling loses up to the amount of your winnings. You can only do this if you have documentation of your loses. Keeping a diary or logbook, is the way to do this.

A proper log must contain;
1) The type of game you played. (Slots, Keno, Craps, etc)
2) The date and location where you played.
3) Your wins and losses for each session or game.
4) Additional evidence of gambling activities.

Answer 3

I don't play slots so I'm not familiar. But you would need some form of documentation from the casino. Also, be careful, you can only offset gambling losses against gambling winnings. Also, unless you itemize, this is a useless deduction because you only get it if you itemize (if you take the std deduction, you're SOL).

Answer 4

Do you use a casino card that tracks your play? Most casinos will give you a year-end report of gains/losses, if you do. Otherwise, things get a bit tricky...

Remember, you can only deduct your losses up to the amount you report in winnings. (And, you still often still get hurt on your return because the winnings go on the face of Form 1040 while the losses are deducted on schedule A.)

Answer 5

Take Responsibility is right. You can only claim your losses UP TO the amount of winnings you are reporting. And it still is not a complete wash. Your winnings are taxed in full, and only a portion of your losses are deductible (only if you itemize deductions on Schedule A are you allowed to report these losses. they are subject to 2% of your adjusted gross income) which will most likely not amount to much.

Answer 6

Do you have a players club card with the Vegas Casinos you go to? If so, call them up, give them your name and they will send out a IRS Form W2-G with how much they calculated you losing.

Casinos are real good about this too. They don't question you, they happily will send you out the form.

Answer 7

Depending on the type of gambler you are, I would go with what mrtaxtips and ticketstrategies said.