Gambling Income
So I recently took a trip to Las Vegas. I LOVE that place. I’m in my early twenties and I’ve already been there 5 times. Twice this year. I’ve done pretty well…I think I’m up in the long run. I don’t really go all out though. My games are craps and blackjack and I keep my bankroll to about a couple hundred dollars. And I stick to it. No more, no less. It’s all about moderation baby.
On this recent trip I made a few hundred bucks. Not bad. But as always, I was thinking, do I have to report this income? My answer is no. I think you can fly under the radar if you just go to Vegas and play a little for fun. Now if you’re a high roller and you win the big bucks(like in the thousands) or you hit the jackpot, then the lovely casinos will probably track your winnings. I’m not sure if they automatically send you a letter detailing your winnings or not, so it might be up to you to request one.
Your gambling winnings should go on Line 21, Other Income(on the 2004 Form 1040). The nice thing is that you can include your gambling losses, to the extent of gambling winnings, as an itemized deductions. I guess this doesn’t help if you don’t itemize. But if you do, include your gambling losses on Form 1040, Schedule A, Itemized Deductions, line 27-Other miscellaneous deductions.
ethan said,
December 8, 2005 @ 11:27 pm
They take care of your tax infomation and filing when you win big and they come to pay you off!
stranger said,
December 10, 2005 @ 6:52 pm
in general, if you’re playing table games, you won’t be reported. if you win above a certain amount on any of the machines (video poker, slots, etc) they actually come and take all your tax info (ss #, etc) before they even let you take your ticket from the machine. sucks, don’t it?
TaxGirl said,
December 10, 2005 @ 7:28 pm
ethan–oh i didn’t know that. looks like maybe you’ve won big. =)
stranger–hmm..interesting. yea it sucks that the IRS takes a chunk of your winnings. you think you’ve won all this money but then half is taken away. it’s an interesting system we live in.
thanks for the comments!
Tax Business Advisor » Blog Archive said,
August 4, 2008 @ 11:59 pm
[…] Gambling Income So I recently took a trip to Las Vegas. I LOVE that place. I’m in my early twenties and I’ve already been there 5 times. Twice this year. I’ve done pretty well…I think I’m up in the long run. I don’t really go all out though. My games are […] […]