Dealbook by Andrew Ross Sorkin, NYT
emailed article
Bad beat
By Ian Frisch
It’s President Trump’s casino — and the house always wins.
That is the crux of gamblers’ frustration after they read Trump’s landmark policy legislation, which includes an under-the-radar provision that amends how gambling income is taxed.
Previously, gamblers were taxed like any other profession: If a poker player or sports bettor broke even, he or she would report zero taxable income. But starting next year, only 90 percent of losses will be deductible.
When gamblers break even, or incur a net loss, they will still owe taxes — effectively a 10 percent penalty on gambling winnings. The change is expected to generate an additional $1.1 billion in tax revenue through 2034.
The current law allows a gambler to subtract losses from winnings. If a gambler wins the casino will issue a W-2G form with a copy to the IRS. This formalizes and records the winnings.
As an AARP Tax Aide volunteer I often see W-2G forms because we have a casino in town. The taxpayer is allowed to subtract their losses – but the casino doesn’t issue a form to record the losses the way they do for the wins. The gambler can drop endless quarters into a slot machine with no record.
When someone brings me a W-2G form I ask them how much they lost at the casino so I can subtract it from their win. They almost never know how much they lost. So even if they lost more than they won the winnings are 100% taxable even though they should be zeroed out.
Anyone who gambles should document their losses. But people don’t know about the tax law and don’t think about it.
I am reminded of Marge & Jerry, the Michigan couple that gamed the state lottery to the tune of $26,000,000 *(all legally), but kept all the losing lottery tickets in the garage *bales and bales and pallets and pallets full) as proof of their “losses” in case the IRS should get fusty.
Almost everyone who gambles is “buying” excitement and micro-spasms of dopamine, “losing” is mostly ignored, and so the casino non-accounting system lines right up with their customers experiences…. sadly.
I have not been in a casino for decades. But they did have cards that plug into the slot machines to count your plays. You’d be rewarded with rooms and food for more play. Gamblers must be able to ask the casino what the casino recorded as losses.
I am correct
AI Overview
Yes, if you used a casino card (also known as a player’s card or loyalty card) while playing slots, you can generally get a statement from the casino detailing your wins and losses
.
Here’s why and how:
Tracking Gaming Activity: Casinos use player cards to track your gaming activity. This includes which machines you played, how much you wagered, and your wins and losses at those machines.
Win/Loss Statements: Many casinos provide players with win/loss statements, especially for tax purposes, according to Flip The Switch. These statements often detail coin-in and coin-out for slots, giving you a record of your gaming activity.
How to Obtain a Statement:
In Person: You can often visit the casino’s Players Club desk to request a statement.
Online: Many larger casinos allow you to access and download your win/loss statements electronically through your online account, says Flip The Switch.
By Mail or Email: Some casinos may also offer the option to request a statement via mail or email, though they may require you to submit specific forms, such as a W-9 form and a Win/Loss Request form, according to Shoshone-Bannock Casino Hotel.
Important Considerations:
Using the Card: It’s essential to consistently use your player’s card every time you gamble to ensure accurate tracking of your wins and losses.
Not Legally Obligated: While casinos typically offer win/loss statements as a service to their customers, they are not legally obligated to provide this information. Their primary obligation is to report winnings above a certain threshold to the IRS.
Tax Purposes: You can use these win/loss statements for tax purposes, but it’s important to understand that the IRS may require additional documentation to prove gambling losses, according to globalgatetaxes.com. It’s always best to consult with a tax professional regarding tax regulations and record-keeping requirements.
In a way the law kind of makes sense. Because part of gambling is entertainment, and that entertainment value needs to be accounted for. It’s similar to charity dinners+shows, you might pay $10,000 for a table, but not all $10,000 is deductible as a charitable contribution because you have to assign some value to the dinner and to the entertainment. So maybe only $8,000 of it is deductible.
OK, I’ll happily deduct $29 for the cost of the chicken dinner, and another $50 to watch the Grassroots, none of which are from the original group, play 5 of their hits from the 60’s which I didn’t really care about anyway.
