If you hit 10k on a slot machine and did not pay taxes,can u deduct hotel expenses for job instead of paying?

Question

I hit a jackpot and did not have taxes taken out, and my job was in another city and I had to pay for the hotel myself, can I use as expense against the taxes I owe for the gambling?

I know that you cant deduct the hotel as a gambling expense, but will I be able to use the hotel to offset the gambling tax in my return somewhere? I am new to the tax thing I just got out of college and havent filed and will hr block be able to help me do this?

Answer 1

No chance! The only deduction you can take against gambling winnings are gambling losses up to the amount of the winnings.

You need extensive records to document the losses. For example, you need to keep a diary that lists the date, time, casino, and slot machine number you played and the amount you played. For table games, you'd log the table number and the name of the game. If you have one of those cards that tracks your action for "comps" you could request a statement from the casino that would be accepted by the IRS as proof of your losses.

You deduct gambling losses on Schedule A so you must have enough to make it worthwhile to itemize in the first place.

If you were traveling on business and took a detour for the gambling, none of that expense is deductible as a business expense; it is entirely personal and non-deductible.

Answer 2

The only deduction that will help you is a deduction for gambling losses up to the amount of your winnings.

Put your winnings on Line 21 of the 1040 "Gambling winnings". You gambling winnings are not subject to self-employment tax, so indicate that as well.

If you are doing your return with software, and you received a W2-G from the casino, enter all of that information into the return.

On Schedule A, put your gambling losses for the year under the section for other miscellaneous deductions not subject to 2% of AGI (Line 27). You are allowed to deduct your losses up to the amount of your winnings, so you can't put more than $10K. It would be a good idea to get statements from the casino for your losses, or otherwise document your losses up to the amount of your winnings, in case your return is examined.

If you gamble in the future, keep track of your losses so when you hit that next jackpot, you won't be paying extra income tax.

Answer 3

If you want a restful sleep do the right thing - Report the 10K as other income, not subject to self-employment tax and report any expenses or losses as an itemized
deduction. If you dont itemize, you cannot claim any deduction from the winnings.

You can deduct whatever you want on your return, including showing your dog and cat as a dependent, but rest assured, you will be audited, and the exemptions and deductions will be disallowed.

Is it worth not getting a restful sleep at night?

Answer 4

Your hotel expenses are in no way related to your gambling income. Claim the income and then you can also claim unreimbursed work expenses as well. Just don't net them together before putting them on you return.