Gambling and Taxes with Gambling Author Jean Scott

hi and welcome to our instructional
video that is designed to make you smarter
gambler my name is Steve Bourie on the author of the American casino
guide which is the number one bestselling book in the US on the subject of casino gambling and
travel and the only book that comes with more than one
thousand dollars in casino coupons if you want to know more about the book
be sure to visit our website at and if you
have an iPhone or iPad be sure to download our free app just go
to the app store and search for American casino guide in this video I speak with gambling
author Jean Scott about gambling and taxes jean is the author of numerous books on
casino gambling including the frugal gambler frugal video poker
and tax help for gamblers if you’ve ever wondered what taxes are
owed money when a large jackpot in US casino and how you can deduct gambling losses
then this video will explain it to you now here’s my interview with Jean Scott you have to pay taxes on everything you
win in a casino the IRS likes everything reported every sort of
gambling all and outta casinos whether it’s bingo lotteries raffles I’ll whether you’re playing in a casino on a
cruise ship out in the ocean whether you’re in a foreign country
casino whether you’re in a Native American casino and the United States the IRS is also
concerned with online gambling particularly but much to some people surprise it does not
matter whether the gambling online is legal or illegal the IRS does
not make any difference they want you to report all gambling in
all places in the world or in cyberspace or legal or illegal do you have to report
your gaming action to the IRS even if you are a net loser at the end
of the year the IRS wants to know all about your gambling
action and probably one of the biggest myth is if you lose by the end of the year you look at the whole year you say I one
sometimes I lost sometimes but in the long run I’m a net loser people think they don’t have to report
this is not true because the IRS wants you to keep track each incident gambling whether it’s a session in a
casino r1 and said that when you wanna the lottery
or whatever and they want you to keep a record I
love all of those separately so at the end of
the year you will have lots of winning sessions or winning incidents and then you’ll
have lots of losing sessions or times that you lost the IRS specifically says in the
instruction manual that you cannot reduce your wins by your
losses and give a net total what the end of the
year what are the IRS’s record-keeping Requirements because the IRS wants to know all of
your action the only way that you can fulfill their requirements is by keeping
some sort of the gambling record it might be a diary friends tense I use a little booklet that’s a calendar and
each day I gamble I put down where I gambled what I played whether I
wanna /url of a the more technical people might keep
one in their smartphone or on their iPad or so forth I some people have a lab rat
computer records but and that at the end of the day if
you’re ever audited the IRS wants to know all your winning
goals and all year losing days and and that is
how you report them on your income tax form if you don’t keep the
gambling diary can you estimate your wins and losses
for the year people who do not gamble too much light be able to get by with that if
they are %ah did particularly they couldn’t get go back to the casinos where they
gambled and they can get what we call a win-loss statement from each casino if your gambling is not extensive sometimes be IRS will accept that and on it but on the whole if you have fairly
elaborate a I record are don’t have fairly
elaborate records a the IRS is gonna say those when lost
eight months are very valuable if they’re not backed up
by a diary or some other computer record because their notoriously inaccurate
their incomplete and if its machine play that your and
doing if you don’t play with your players card
in the casino doesn’t can’t give you a an Acura when loss
statement because they don’t know how much you won or lost how does the IRS know what you win the IRS doesn’t know every little
gambling transactions have every person that’s gambling and
the United States or wherever their camp link but there are ways that the IRS can find
out and does one is if you are a table games player there’s not as much paperwork as if
you’re a machine player but they’re are rules and regulations that the
casino has two keep paperwork when people cachet and by hand or cash and chips love a it starts at three thousand for sure from ten thousand up that there’s gonna
be paperwork but many casinos at it starts a lot earlier
than that at three thousand now when you’re a machine player that there’s a very specific the limit if you play a machine and you get a
jackpot twelve hundred dollars or more this is
going to be generate at up document called a double
A to G you are going to get that add there’s
nothing you can do about it and just as a note here you better put that amount as part of your income if not you’re gonna get a letter so fast from the IRS and they’re going to just
assume that you forgot to put it on and they’re gonna tax you on it anyway so
you might as well put it on and savon ot what is the process when
you win a taxable amount when you hit a jackpot of 12 hunter or more the machine is going to lock up now I I can say that in some casinos it will lock up on smaller jackpots like
a thousand dollars that will not generated w/ 2gb but
starting at 1200 and above that’s gonna generate a debit to GE said
the machine locks up the employees some employees comes and
you have to show two things you have to show your ID and
then you have to either show your Social Security card with your
number or it depends on the casino you might just be able to give them your social
security number verbally and sometimes they give you a
piece a paper to write it down so that you don’t have
to say it verbally and maybe somebody around you would hear it %uh right this presents a question and a lot of people’s mind they sat on
what a whole I don’t want to carry my social security card I how did they know that the number I’m
giving to you is correct well they sometimes will have
you they’ll bring something called a Debian
earning and on that you’re right down your social security number you’ll sign your name which is your sway
ring that that is under oath fierce wearing that
bad is your social security number then that takes the casino off the hook by having a the a sending unit at false social security number and back to what
happens next after they take care of all that then they come and bring you back your
money and that’s the happy time one note here the IRS expects you to put all your gambling lens and
whether you get paperwork or not so just because you don’t get W
two g’s all your jackpots are under that 1200 threshold that doesn’t mean that you’re
not supposed to count those what if you don’t want to give the
casino your social security number when you when a taxable jackpot you do
not have to give the casino your social security number when you hit at twelve hundred dollar
and above jackpot however if they’re going to take 28
percent out at that jackpot and send it to the
IRS and you might say okay well that’ll just
be withheld I there is a problem because they don’t know who that jackpot is that
28 percent well just be lost to you and a related
question today somebody says well I don’t like to give my ID why do they need my ID well her why you need your ideas they will not
give you a jackpot and tail they see ballot ideal at you can’t get away with this no way
no how is there more than one way to report
your gambling wins and losses on your federal income tax return we’ve talked about what the IRS requires
as far as record-keeping now what happens when you go to fill out your
income tax form at the end of the year there are several different ways that
you can handle your taxes first there’s two main categories:
there’s recreational gamblers and thats most of the people I who
gamble and then there are professional gamblers
do it differently let’s talk about the recreational first the logical way and the way the IRS one
said as you would add up all your winning
days and and one total and put that under on page one under other income and then
you would market a gambling winnings then here’s where it
divides if you’re a person who doesn’t I have my is then you’re kinda stuck because if you itemize you can put your losses
as ms. Elaine ES deduction however if you don’t have a lot of other
deductions then you’re gonna lose your automatic
deduction so it really puts up I a low-income person I in a bind because what’s going to happen is let’s say UN a four thousand dollar Royle I know dollar machine you have to put
that is income but you play the rest of the year and
you lost all that four thousand on a lot more but you don’t itemize well then you
can’t take anything off to deduct your not pay whatever bracket you’re in you’re gonna
pay taxes on that whole four thousand dollars now if somebody has a bigger income they
have allotted deductions maybe they have a mortgage that they a deducted a lot of other
taxes and so forth they could put that four thousand
dollars is income and then if they didn’t have losses a
four thousand or more they can deduct 4,000 now Nick I know your next question is
all right let’s say you you won four thousand that one time but
the rest a year you lost 6,000 can you put the 6,000 as a deduction
know the IRS has a little rule here that you can’t take more losses then you
wont so you can take the four thousand income
and four thousand deductions but that’s all you can take
that at least saves you from paying taxes on money
that you didn’t actually weekend in the long term that
you lost in the long term on the other hand if you’re a
professional and let me tell you it’s very hard to get the IRS to accept you as a professional but if
you make a lot of money gambling your kind of all time gambler and and
your gambling a lot and high-stakes in fact you’re making
your living or a good part if you’re living gambling then you file as a professional
as a business then you would do a schedule C and your
wins and losses would be on the schedule C others the same rule even with professionals you can’t take
more losses than your weekends but let’s say you
were a big gambler and you won 20,000 and your loss 30,000 I you can break you could break even you
can’t take that 30,000 loss against other I income but then you don’t have to put
back twenty thousand you want over on that page 1 under other income I’ll a lot of people would like to count
themselves as professional Inc a professional gamblers I but the IRS
has really strict standards for this besides federal taxes are there other
kinds of taxes on gambling winnings once you had figured out how you should
file on your federal return you might think your troubles are over no not true because if you are a
resident of the state are played in this state that floor now looking for new sources
of income they are now charging state tax and some have them go so far as to take that tax out right when you
hit the jackpot so frances we worrisome a playing Indiana we live in Nevada we’re not used
to having money taken out of our jackpots in indiana every time we hit a jackpot
over twelve hundred dollars they took 3.4 percent out this is that killer for many many
gamblers because some states in the annie is 10 that’s where we used to live that’s one
reason why we live in Nevada now Indiana takes all your way ends just like the federal as income but they
don’t allow you to deduct anything and so everything you we n is not peer winnings everybody knows
that you had a at two thousand dollar jackpot new you may have lost that whole thing by
the end of the day if you play long enough for at least by the end of the
week in the month so a lot of Midwest states and it’s
getting more clear across the United States but the problem with this is I like if you play in indiana you’re not
going to get that tax back it’s gone now Brad and I get that tax
back because we’re professional gamblers and there’s different rules for that so you may say well how do I know like another example is mississippi
somebody else a I went to Mississippi and they took a
tax out they called it a at gambling’s state tax not a state
income tax and they say I can even get that back
that is true that’s what happens so every state has
their own rules and they have sometimes different rules
for somebody who lives in the stadium is a resident and for somebody who comes in and plays
in that state it’s too long and complicated I have a
whole chapter and this is it at time that I I guess I
should mention my book I’m not trying just to sell books I’m
trying to give information but in this case I need to refer you to
my book tax help for gamblers because I have a whole chapter and then
a whole list I’m all the fifty states and how they
handle gambling taxes and everyone is a little
bit different all right we mentioned federal taxes we
talked about state taxes now there’s a new wrinkle that some
cities are going to start taxing gambling
winnings there are some new casinos in Ohio and almost all the cities where these news casinos are are going to take out taxes or at least charge tax for city taxes as well as state taxes
and federal so I and Yahoo at your gonna be stack and I think in the future you better
check on this because I I think all the city’s and the states
are so broke these days that they’re looking
for new sources of income and gambling is always a good hit
because thats a syntax if you wanna learn more about me and my
books including tax help for gamblers you may go to my website queena comstock
com there there’s a summary of all my books
and products and also you can order them there you might want to say oh well I’ll what
about things that happen in that tax world and
its it’s not in your book it’s something new
well then you can go to my blog and back on that queena comstock com
there’s a link to my blog and if there’s something new on the tax
fraud I’ll discuss it there don’t forget that you can see more of
our educational gaming videos on our YouTube channel just go to

Posts created 5132

50 thoughts on “Gambling and Taxes with Gambling Author Jean Scott

  1. Wow, I'm never going in the US again…. I feel so lucky to be in Canada, hope it never changes *knocks on wood*

  2. Yeah well the fed and irs are unconstitutional anyway. They don't care though. As long as they can call themselves "government" and have the guns you're going to do what they say huh? They love people like this idiot to be good little slaves and report everything. It means less for you and more for them to pay off the debt owned on the fiat paper currency we use and to support the illegal wars.

  3. I won 1300 2 yrs ago and ended up with 950 after taxes. Oh by the way, I live in Indiana too, so I know what Jean is talking about with Indiana taxes. When I put it on my federal return, I had to itemize and couldn't deduct any losses which stunk.

  4. thats why people should stick to the sportbooks —- if u win under 10,000 they will not tell the irs

  5. What about lose, lose , lose? My income is left with near null after gambling? they still tax you on your actual income?

  6. Unfortunately, most gambler will be net losers. Unless you itemize your deductions you will still have to claim any winnings as income, even though you actually lost money.

  7. Now, what is with international gamblers? If I, as a German, win a Jackpot of 10000 dollars, would I be subject to any taxes? And obviously I can't give the SSN because I have one.

  8. yes, you would have to pay taxes to the u.s and to germany —– if i travel to germany and win the lottery, i would have to pay taxes to germany and the usa

  9. Foreign gamblers in the U.S. are subject to a 30 percent tax on slot-machine winnings of $1,200 or more.

  10. I don't see anywhere in my comment that I was blaming her for the tax laws. I just said that the IRS was BS and corrupt. Know what I mean if you follow the news late. She is a Pro gambler and doesn't even work for the IRS. … The second part of my comment refers to the ending when she said to get her book and said that she was not trying to sell her books. I said that because anyone writing a book not offering it free is "trying to sell their books."

  11. If this was inforced:  Many thousands would just stop going to Casinos.
    I would not go at all.  Casinos must be fun, Taxing will kill the Casinos.

  12. In Indiana, you do not have to give your SS#, they take your driver's license/Photo ID, and use your DL#, which has your SS# linked at the BMV.

  13. This was very informational. However I think it's time they move the HandPay W2 from $1199 to close to $2k. Just my thoughts!

  14. machines loose first 20 minutes on hour(be careful with other 40 minutes) use this formula and you will always win

  15. Actually if someone is black they do not have to produce an ID to collect a jackpot, or to vote for that matter because Obama and the democrats say that is racist.

  16. And then, there is the "MAGI". (Modified Adjusted Gross Income) which causes you to be charged double or TRIPLE for Medicare and Drug coverage…….Put one dollar in, get one dollar back, THAT is "MAGI"……and you BETTER report that!Great government we have, right?

  17. If I had say 50 playing sessions 25 wins and 25 losses with say one jackpot if I keep a log on a booklet with all the sessions, casino names, and dates and I were to go through an audit will the IRS accept a simple booklet? how would they know its accurate?

  18. Listening to this, gambling in America, as an american is not so profitable. Unless you have a method that you can really rely on to win with high percentage than the taxing percentage, you should not play or else you'll always be a loser, therefore, stop gambling!!!

  19. Honest not true. A person stating their profession as a professional gambler can right of most of their cost against their winnings. That would include travel, food, room etc.
    The average player that hits a $1200.00 hand pay will get a variation of W2 form that goes to the IRS and your state. Any winning at or above $1200 has to claim on their income tax. The average player can write off those winning against and loses in the same fiscal year including lottery tickets. Check with you tax adviser for your local state laws. Funny, Canada has not tax on gambling winnings. In the states our "Elected officials ie government" do anything they can to get more tax dollars.
    IE – When NYS started the lottery the income (they take 40% of the games or more) was to go to the school systems. Once they saw the money draw they lied as usual and dumped it into the general fund and the schools and our kids education got screwed. I call the state games as voluntary taxes. SAD:(

  20. Hi I’m leaving in fl but I won the jackpot al casino 4 times this year all amounts around 7000$ but normally hadn’t using players card, all 2018 I lost at this casino around 10,000 with out using players card and lost some where out the state can I Deductible for w 2 from; please I need help.

  21. In Connecticut we have two tribal casinos. Machines you get taxed $1,200.00 or more, on TABLE JACKPOTs $5,000.00 or more( not NON jackpot table wins). They take care of all the tax for you, whether you want to deduct state, federal, both, or none. As long as one doesn’t cash in more than $10,001.00 in chips, or a machine ticket, you are not obligated to pay tax. Period. That’s how Mohegan Sun operates at least. And why should one report it when it’s already paid??
    Honestly, my two cents. Fuck the Govt. They enslave us every single day so they can fuck off. Catch one if you can govt 🖕. Very hard for them to catch people making a little extra money on the side, or just playing for fun. This lady can take her bs info and books and go pound sand.

  22. question, I get it the table games when you hit the $3,000 limit in one bet they require the winner to fill out the casino form, but, if you win for example 3 smaller wins added up together is above the 3K limit, will the casino require the form to be filled out?

  23. My accountant just informed that a diary is not accepted to write off taxes. What is accepted by the IRS tp wrote off the losses as normally they are higher than the winnings? I’m lost! 😫Who in Vegas can help with that? I will not play more than 25C EVER AGAIN and will never ever pay the crooked IRS. IVE LEARNED MY LESSON!!!!!!!!!!!

  24. the taxes for recreational gamblers and what can be written off has changed… maybe time to redo this video.

  25. Or you could avoid recording gambling winnings altogether by playing table games only (no higher than green chip level) and cashing out small enough amounts to avoid both 1) a currency transaction report for $10,000+ transactions 2) Suspicious Activity Reports for a series of transactions just barely under $10k, or if you're clever enough, insist on refusing to give ID and threaten legal action/gaming control board involvement if they don't cash out your significantly less than $10,000 transactions without ID.

    Let's say I win 30,000.00, can I just play whatever they're going to tax me on a machine and claim that..?

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