I always opt for no taxes.
“Do we get a year-end tax statement from all of our rewards cards?” You won’t get anything mailed to you automatically, but you should be able to request this at even the smallest of casinos. Many formidable casinos will have a win/loss section on their site, where you can log in at any point and see what you’re up or down for the year (according to them).
That last cryptic wording is why I would never pay taxes on the spot: according to them. My wife, a bookkeeper/accountant, insists on being as transparent as possible come tax season, and there’s certainly merit in just paying what you owe according to whatever state you live in.
Do not take what I am saying below as sound gambling tax advice—it is not. I am just saying that if you happen to have a lot of hand pays at the end of the year, it’s not impossible to manufacture losses (or perhaps hide some wins). I touch on that a bit here:
Card Pulling and Card Abstinence
AI notes the following, and I’ll again warn that this is not coming from a tax professional:
Offsetting Losses: You can deduct your gambling losses, but only if you itemize your deductions on your tax return (Schedule A). If you take the standard deduction, you cannot use your losses to cancel out your hand pays.
Net Loss Result: If your total documented losses for the year are greater than your total wins, you technically owe $0 in federal income tax on those winnings.
- Keep Records: Save every losing receipt, ticket, or use your player’s card.
- Get a Win/Loss Statement: Request an annual win/loss statement from the casino to prove your overall deficit if you get audited.
- Beware the Standard Deduction: If your itemized deductions (including losses) don’t beat the standard deduction limit, those losses won’t help lower your tax bill.
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Back from AI…I save all my receipts, get all my win/loss statements, and put everything on a desk for my wife come tax season. It’s a mess, but knock on wood, she’s able to legally cancel out whatever I’d normally owe federally. State taxes are always more annoying, and that’s going to depend on where you live.
I hope that rambling helps. If anyone has more experience, let us know.
Ben Rosenthal
