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Originally Posted by Holland Hacker
Did you itemize you deduction in 2007? If so you may have to file and amended 1040 to show the higher income and higher itemized deductions which should net to close to zero, assuming you dodn't have a huge amount of winnings.
Just a heads up that if you plan on using your statments to substantiate / document the fact that you did not come out ahead for the year, you should probably be prepared to include ALL of your winners and not just the ones covered by the w2G. If you had a lot of winnings it may change your tax by way of phaseouts, limitations etc as your AGI will be higher.
PM me if you want some assitance or need help figuring out the tax you may owe.
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This what's so f'd up about taxes on gamblers, especially horse players. Your AGI is adjusted above the line causing you to possibly lose deductions such as child tax credit, college tuition, mortgage interest reduction ...etc, even though you may have the losses to offset the wins/signers.
If I walk up to a blackjack table with $500 and cash out for $1500, do you sign any forms? Is anything reported? Hell no, you're suppose to report the income, but there isn't anyone handing you a form W2-G when you walk away. Could you imagine how empty the BJ tables would be? John McCain a notorious high rolling craps player who is reported to play once a month claimed exactly $0 in gambling winnings on his last 2 disclosed 1040's. No adjustments to AGI and no itemized deduction for gambling losses.
So again why shouldn't someone play offshore, with large rebates and no IRS reporting. The racetracks should get there lobbyists arguing that if the casino's don't require W2-G's, why should the racetracks? You can't tell me a pit poss doesn't know what a person buys in for and what he/she leaves the table with.