Taxes on Slot Gambling Winnings

If you are a U.S. slot machine player, and have not heard the news already, the IRS wants you to report your winnings made at slot machines for over $1,200.  That means that you will have to pay taxes on any sums over $1,200.  But it also means that you can offset these taxes by claiming your losses.  And in order to do this, you need to have substantial, documented proof of your losses incurred at the slot machines.

One of the best ways to do this is to keep a detailed accounting of all your betting sessions.  If you are really serious about filling out that Schedule A as part of your Other Income line on your tax form 1040, you really need to keep a diary of sorts, that should include slot machine tickets, bank statements, payout receipts and slot card printouts.

By far, using a slot card like the one provided by IGT slot machines to casinos, known as the Slot Marketing and Revenue Tracking System (SMART card), is the most effective and easiest way to provide documentation of your winnings.  Simply go to the casino customer service desk or rewards desk and ask for a printout of all your action at the machines for that year in question.  Be sure to specifically request for the year that you are filing, for if you are doing this in February of the current year, the casino may just give you the report for the current year.

 

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