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Gambling Jackpots

In 2006 I won 20,000 in handpaid jackpots playing slot machines. The jackpots ranged from 1200.00 to 4000.00 though unfortunately I ended up giving it all back and I have a statement from the casino that I did indeed, lost much more than I won that year.

So, a year ago I am expecting this form to be sent to me and the IRS about theses gambling winnings and at the end of January I got the form from the casino and all it stated was I won $600.00 and they were going to notify the IRS about that. It's been a whole year and I still haven't heard anything else from the casino or the IRS while still collecting the Advance Earned Income Credit which I can fairly claim because I have two qualifying children.

So my questions are:

What do you think happened as to why I didn't get the form from the casino that showed all those gambling jackppots?

And, If the IRS "did" somehow get the information wouldn't I know it by now?

And, if this truly was a paperwork error by the casino how long before I truly don't have to pay taxes on those jackpots (I never have anything held out of jackpots) if the paperwork error is corrected and the IRS finds out about it (if ever).

Thank you in advance for any advice.

Reply to
John
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Also, the form from the casino that stated I had 600.00 in income was a

1099-misc. form - not the 1099-G form I was expecting.......

Reply to
John

It's not the casino's job to track your gambling activities and accurately report them on your return. It's your job, and you failed in 2006. What's more, if you also claimed the EIC for 2006 it was likely erroneous since you had $20,000 of unreported income.

You can read about gambling winnings and losses in IRS Publication 17. The

1099-MISC was probably reporting comps. The casino evidently has its own problems becausee it didn't properly withhold and report on Form W-2G (not 1099-G).

Bundle up your 2006 records and find a low-income tax clinic where they can sort this out for you. If you wait for the IRS to catch you, you can lose your right to claim the EITC.

Reply to
Phil Marti

Now that's interesting about using a 1099-misc form. I wonder...... were they using that for the value of all the free drinks they provided to keep you happy while wagering?

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

Presumaby, you mean W-2G.

I got interested in all this when I learned of an acquaintance who claims to have figured out how to find slot machines at local "indian gaming" casinos that tend to pay out, and he claims to have brought home many tens of thousands of dollars in winnings per year, only a fraction of which get reported to the IRS.

Looking at the W-2G instructions, apparently slot machine winnings are reported only if you take home more than $1,500 (after reducing by wagers) -- and that's a per-event thing, apparently. If you were to win any number of $1,499 jackpots, nothing gets reported to the IRS!

And, of course, this acquaintance doesn't report any gambling income that didn't get reported on a w-2G.

Now, I realize that the vast majority of gamblers are not taking home net winnings, else casinos would not exist. Nevertheless, I have to say it galls me that tax reporting for winners is set up this way.

Reply to
NoSuchPerson

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