I received my win/loss statement from the casino. It showed three columns:
Total W/2G = $30,000 Slot Win = $1,800 Total Win = $1,800
I called the casino as I couldn't make sense of it--I won $30,000 but ended the year with only $1,800 in winnings. The customer service people told me that I had won the $30,000 and then put it back and lost it. But after losing it, I managed to then win $1,800. My question is this: on my tax form I show $30,000 as W2G winnings. Then on my itemized deductions, I show my losses as $30,000 minus the $1,800 win. Am I right? I'm trying to be aboveboard and honest with the IRS, but these figures just confuse me.
Can you help?
I think you're got a handle on the win/loss statement. As you played, some of your winnings required W-2Gs and the total of those winnings is Total W/2G. That number doesn't take into account any of your losses or even the amount you had to bet to get those W-2Gs.
Taking into account all the money you bet and all your other losses and winnings, you ended the year with a net win of $1,800. This is the number you should really have to declare because it accurately represents how well you did at the casino. But I suppose very few people would declare gambling winnings without the W-2G (How many people who live in a state with a sales tax pay the use tax they're supposed to pay on out-of-state purchases?), so we're stuck with our split system of declaring some winnings on one line and an adjustment to represent reality on another.
You should consult a professional tax preparer to ensure your return is prepared correctly.
Best of luck in and out of the casinos,
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