Winning jackpots means W2-G forms that increase gross adjusted income even if losses can be claimed as itemized deductions. How can I avoid this?
2007-05-15 01:33:01 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
you would have to be a professional gambler, which means that would be your only source of income. You'd need to be able to show you just about lived in a casino, and have no other means of support.
2007-05-15 01:58:27 · answer #1 · answered by Jo Blo 6 · 1⤊ 1⤋
Professional gamblers are self-employed and could deduct losses in excess of their winnings. But they would have to demonstrate a profit motive, and generate profits at least some of the time.
It is very unlikely that the IRS would consider a slot machine player as a professional gambler, as the nature of slot machines would not generate a proft over the long term.
Whether you are a professional gambler or not, the W2-G income still will increase AGI. The difference is how losses are deducted. There is no way to avoid claiming W2-G income as income.
2007-05-15 05:37:57 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
If you itemize your deductions you can claim losses up to the amount of your winnings but will need a system to show those losses. Only professional gamblers are allowed deductions greater than their winnings and beyond just their losses.
2007-05-15 03:44:44 · answer #3 · answered by ? 6 · 0⤊ 0⤋
You can't avoid it as long as it's income. You can be a legal gambler by profession, but winning is still income.
2007-05-15 01:36:59 · answer #4 · answered by MrOrph 6 · 1⤊ 0⤋
Only if you own the slots.
2007-05-15 01:51:31 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 1⤋