| If you make any winnings in the gambling, you need to | | | | you by the gaming establishment. |
| report the full amount of the winnings for the year on | | | | These records are just suggestive. The tax liability |
| line 21 on Form 1040. You can deduct the losses you | | | | depends on the facts of a particular winning or losing |
| make from gambling for the year, on line 28 of form | | | | and the related circumstances. |
| 1040 on Schedule A. However, you cannot deduct | | | | Keno – the copies of the Keno tickets purchased |
| the losses from gambling which are more than your | | | | by you and validated by a gambling establishment, |
| winnings! Also remember, this facility is not available | | | | copies of your casino credit records, and copies of |
| to the non-resident aliens. They cannot deduct losses | | | | your casino check Cashing records are required to be |
| on gambling in schedule A. | | | | produced for winnings and losses from keno activity. |
| In order to claim losses on gambling you need to know | | | | Slot machines – If you’re playing on these |
| certain basic rules of IRS on the subject. Suppose | | | | machines, a record of the machine number and all the |
| you make a winning in gambling of $1000 and in the | | | | winning date and time the machine was played. |
| same year you make losses of $500, you cannot | | | | Table games (including blackjack, poker, roulette, wheel |
| reduce your winnings by your gambling losses and the | | | | of fortune etc) – the number of the table you are |
| report the difference of $500. You have to report | | | | playing, Casino credit card details showing the credit |
| the full amount of your winnings as your income and | | | | issued. |
| then you can claim losses equal to the amount of | | | | Bingo – You should keep a record of the games |
| winnings as an itemized deduction. So your records | | | | you played, the cost of the tickets purchased and the |
| for gambling activity should show your winnings | | | | amounts collected on winning tickets, any receipts |
| separately from your losses. | | | | from the casino and other relevant records. |
| In order to claim losses in gambling, you need to keep | | | | Winnings from racing – a record of races you |
| proper records. You must keep a diary entering | | | | played, the amount of wagers, the amounts collected |
| details of all the losses and winnings from gambling. | | | | on winning tickets and amounts lost on losing tickets |
| The diary should contain the following information | | | | need to be produced. |
| 1. The date and the type of your wagering activity. | | | | Winnings from lotteries – a record of tickets |
| 2. The location of the gambling establishment indicating | | | | purchased, the dates of purchase, winnings and losses |
| the name and address. | | | | are required to be kept. You can also keep |
| 3. The names of persons present with you at the | | | | unredeemed tickets and payments slips in support of |
| gambling establishment. | | | | your claim. |
| 4. The amount won or lost. | | | | Many people never realize that winnings from gambling |
| The maintenance is just one part of IRS | | | | are taxable. And those who know it, tend to ignore |
| requirements. In addition to the diary you must keep | | | | it. However you should remember that the legal |
| all the related documentation. This can include form | | | | betting options like state lotteries, casinos and horse |
| W–2G (declaring Winnings from Gambling), Form | | | | racing tracks are regulated by government agencies |
| 5754 (It’s a Statement by person who receives | | | | and IRS keeps a close track with these agencies. In |
| winnings from gambling), tickets for wagering, the credit | | | | fact that is the reason why the bells ring when you hit |
| card records including the bank statements showing | | | | the slot. They’re shouting that someone is there |
| withdrawals or receipts, payments slips provided to | | | | to report your gambling information to the IRS. |