Yes, you can use a casino win/loss statement for taxes, but there are important things you need to know about how these statements work and their limitations.
I'll break down everything you need to understand about handling gambling wins and losses on your taxes.
A win/loss statement is a document from the casino that shows your estimated gambling activity throughout the year. While it's helpful, it's not meant to replace your personal records – think of it more as supporting documentation.
The IRS requires you to report gambling winnings, and certain amounts trigger automatic reporting.
When you win $1,200 or more from slots, $1,500 or more from keno, $5,000 or more from poker tournaments, or $600 or more from other gambling activities, the casino will give you a W-2G form and send a copy to the IRS.
But here's what's really important to understand: you're required to report ALL gambling winnings, not just the ones that trigger a W-2G.
When it comes to losses, you can deduct them, but only up to the amount of your winnings. These deductions go on Schedule A of your tax return as itemized deductions. However, this only helps if your total itemized deductions exceed the standard deduction.
For the best protection, maintain a detailed record of your gambling activity. Keep track of your daily gambling logs, bank statements, ATM receipts, casino win/loss statements, and any W-2G forms you receive.
I always recommend writing down how much money you start with, your wins or losses, and the date for each gambling session. This is especially important if you're claiming losses or reporting less than what appears on your W-2G forms.
If you're unsure about handling your gambling records, working with a tax professional is your best bet. They can help you navigate the rules and make sure you're reporting everything correctly, especially since state laws can differ from federal requirements.
Remember, while casino win/loss statements are useful supporting documents, they're not a complete replacement for your personal records. The IRS considers them estimates rather than official documentation of your gambling activity.