If you make any winnings in the gambling, you need to report the full amount of the winnings for the year on line 21 on Form 1040. You can deduct the losses you make from gambling for the year, on line 28 of form 1040 on Schedule A. However, you cannot deduct the losses from gambling which are more than your winnings! Also remember, this facility is not available to the non-resident aliens. They cannot deduct losses on gambling in schedule A.
In order to claim losses on gambling you need to know certain basic rules of IRS on the subject. Suppose you make a winning in gambling of $1000 and in the same year you make losses of $500, you cannot reduce your winnings by your gambling losses and the report the difference of $500. You have to report the full amount of your winnings as your income and then you can claim losses equal to the amount of winnings as an itemized deduction. So your records for gambling activity should show your winnings separately from your losses.
In order to claim losses in gambling, you need to keep proper records. You must keep a diary entering details of all the losses and winnings from gambling. The diary should contain the following information
- The date and the type of your wagering activity.
- The location of the gambling establishment indicating the name and address.
- The names of persons present with you at the gambling establishment.
- The amount won or lost. For more information visit pokeronlinereview.com
Canadian gamblers venture into the US based casinos and other gambling establishments in the hope of hitting slot jackpots and other gambling wins. Unfortunately many of these gamblers are also assessed the dreaded IRS casino tax after getting lucky with the slot jackpots. Yet US gambling refunds are available to Canadian gamblers who have paid the US casino tax. Canadian gamblers need to be aware of their rights under the IRS tax code, including the right to US gambling refunds.US slot jackpots are taxed whenever the slot jackpot amount meets or exceeds $1200 USD. The bingo winnings tax also takes effect at $1200 USD. The US casino tax is a flat rate of 30%. Thus your tax on slot jackpots and your bingo winnings tax has the exact same calculation. If your slot jackpots and/or bingo wins do not reach $1200 USD, your win will not be taxed. Cumulative slot jackpots and/or bingo wins that are over $1200 USD, but with each individual jackpot and bingo win under $1200 USD, will not be taxed either. Horse racing wins are taxed at $600 USD above and over the original wager, and the horse win must have a payoff of at least 300:1.
Table games usually are not subject to the casino tax, but table game winnings from tournaments are subject to the casino tax.A tax reciprocity treaty exists between Canada and the United States. The treaty guarantees equal treatment for Canadians under United States tax law. American citizens usually receive US gambling refunds for the casino tax they have paid for their slot jackpots, horse race winnings, etc. In the United States, gambling losses can be deducted from gambling winnings. Thus people who have paid casino taxes, yet have had ANY US-based gambling losses from the same time period will have a refund of their casino tax. Visit cardsflip.com
Unfortunately while Canadian gamblers often pay the US casino tax for their US gambling winnings, Canadians generally do not file US tax returns. Most Canadians, and most accountants on both sides of the border are unsure or unable to pursue cross border tax claims. Thus the Internal Revenue Service (IRS) has licensed Certifying Acceptance Agents to help Canadian gamblers recover their US-based casino tax. Certifying Acceptance Agents have been screened to verify their knowledge of US tax laws, objectivity, and professionalism.
Slot machine casino gambling throughout the world is rising due to casino gambling venues showing up in local communities. Slot machine gambling, also known as pokies, fruit machines, or video lottery terminals are very popular with gamblers. For many people, this type of gambling is a recreational hobby or an old past time. Gambling excursions are harmless fun, and the time and money spent on the gambling is within reason. For others, however, this type of gambling can create a downward spiral of depression, despair, and loss of hard-earned money. Video gambling machines are very fast moving, with lots of lights and sounds that can excite the casino player almost as much as drugs, alcohol, or even sex. For those with a gambling problem, slot machines or pokies can create huge losses in a very short period of time due to the quick moving and addictive nature of the games. Every few seconds a few dollars can be lost in just one bet on a video gambling machine. A progression from recreational gambling to compulsive gambling on casino slot machines is much faster than any other form of gambling. Studies have shown that this form of gambling can create an addictive spiral faster than poker, craps, horseracing, and other forms of gambling.
Slot machines, pokies, and fruit machines, have been called the “crack-cocaine “of gambling addiction because of the fast progression of the addiction as well as the addictive components of these machines.
These machines are based on television theme shows, movies, or famous people and contain bonus rounds within the games that can be very seductive. Many will just continue to play the machines, just to get to these slots bonus rounds.
Casino slot machine gambling machines are highly addictive, as you could see when you walk into a gambling casino establishment. Many people stay for hours playing, and will stay on one machine, with the belief that they will eventually “hit the big one”.