Contents
Foreword by Phil Gordon
Author’s Notes
Part I—Federal Taxes
1 The Basics
Gaming Wins as Income
Online Gambling
Defining a “Win”
2 Player Record-Keeping
IRS Guidelines for Records
Defining a “Session”
Casino Win/Loss Statements
The Gaming Log
How Jean Keeps Records
Always An Exception
3 Special Gaming Situations
Casino Comps and Gifts
Cashback and Free Play
Casino Tournaments and Drawings
Gambling Groups
4 Filing Your Tax Return
The Recreational Gambler
The Professional Gambler
5 Federal Government Issues
The W-2G
Income Tax Withholding
Social Security Numbers
Big Brother is Watching You
Gambling Issues for non-U.S. Citizens
6 Tax Help for the Poker Player
Poker Reporting and record-keeping
Poker Paperwork
Poker Gambling Groups
From Recreational to Professional Poker Player
7 Audits and Other Scary
Tax Problems for the Gambler
“The IRS Isn’t Fair”
The 1040 Line 21 Problem
Getting Information From an IRS Human
Surviving an Audit
The Taxpayer Advocate
Part II—State Taxes
8 States Add Insult to Injury
State Withholding Taxes
Taxes on Non-Resident Gaming
The Biggest Problem with State Taxation
Mississippi—A Category of Its Own
Any Relief from State Taxes?
9 How All 50 States Handle Gambling Wins/Losses
Summary
Who’s Who in the Tax Business
Useful Websites
Part III—Appendices
Government Forms
Appendix A1—Form W-2G
Appendix A2—Form 1099-MISC
Appendix A3—Form 5754
Appendix A4—Form W-7
Appendix A5—Form 1042-S
Appendix A6—Form W-9
Sample Tax Forms
Appendix B1—Recreational Gambler—Non-Itemized
Appendix B2—Recreational Gambler—Itemized
Appendix B3—Professional Gambler
Appendix B4—State and Federal Tax Forms for Indiana Residents
Basic IRS Information for Gamblers
Appendix C—Revenue Procedure 77-29
Section 1—Purpose
Section 2—Background
Section 3—Procedures
Section 4—Limitations
Appendix D—Groetzinger Case Gambling as a Business
Syllabus
Majority Opinion
Judge White’s Dissenting Opinion
About the Authors