1099 G Question

fishyak · #1 01-30-2007, 05:32 PM

Won too much JP $ last year. Got a 1099G. I know that gambling losses can offset the gains. Are there any eligible expenses like mileage to the casino or LV air fare that can be used to offset the income as well?

Don Olney · #2 01-30-2007, 05:48 PM

Only if you file as a PRO.
If not ---NO

fishyak · #3 01-30-2007, 05:57 PM

So it's only losses that be used to offset 1099G income, not expenses for us amateurs?

Can a spouse's losses offset 1099 G income on a joint return? I tend to doubt it, but clearly I am looking for any legal way out from under a tax bill.

bav · #4 01-30-2007, 06:49 PM

Pretty sure I read recently that on a joint return the spouse's loses can be deducted. Only makes sense.

Be careful about the term "offset". You DO NOT get to just declare your overall gambling winnings. No way, no how. If you declare as gambling income anything less than the sum of the W2G's you got you can probably expect a letter from the IRS a few months later. You are required to sum up all of your winning gambling sessions and declare that as income (which means your declared gambling income must be >= the sum of your W2G's). You then sum up your losing gambling sessions and deduct that on Schedule A (up to the amount of your gambling wins). Hope you already itemize.

fishyak · #5 01-30-2007, 07:15 PM

While TurboTax does reference a W2-G, I was given a 1099-G form, not a W-2. Gambling losses are apparently taken on Line 28 of your Schedule A Itemized deduction form and are NOT subject to a 2% income floor.

I think you are correct - declare ALL income and then take your credits, offsets, deductions, losses, etc. elsewhere. And it looks like that elsewhere is Line 28 of your itemized deductions on Schedule A. I've been referred to IRS Publication 529 for details.

Procedurally, it looks like all gambling income starts with W-2G and then the losses go on Line 28 Schedule A. There is no mention of being able to use expenses to offset the income, only losses. There is also no mention of being about to use a spouse's loss to reduce the other spouse's gambling income, but that may work out OK on a joint return.

If I learn anything further after looking up that IRS Publication, I'll post about it.

RR · #6 01-30-2007, 08:23 PM

[ QUOTE ]
Won too much JP $ last year. Got a 1099G. I know that gambling losses can offset the gains. Are there any eligible expenses like mileage to the casino or LV air fare that can be used to offset the income as well?

[/ QUOTE ]

Be careful. THey gave you 1099G not W2G. I know a little bit about W2G, I don't remember what the difference is between the two forms but someone I know that used to deal with this stuff told me it is BS whenyou get a 1099 instead of W2.

Russ Fox · #7 01-30-2007, 08:28 PM

A Form 1099-G is used by a government agency to report government payments that can impact taxes (i.e. tax refunds, unemployment compensation, etc.).

Are you sure that's what you received? I've seen casinos mistakenly issue Form 1099-MISC instead of a W-2G, but it would have to be a very inept casino to issue a 1099-G instead of a W-2G.

-- Russ Fox

co-author, "Why You Lose at Poker"

psandman · #8 01-30-2007, 09:29 PM

[ QUOTE ]
[ QUOTE ]
Won too much JP $ last year. Got a 1099G. I know that gambling losses can offset the gains. Are there any eligible expenses like mileage to the casino or LV air fare that can be used to offset the income as well?

[/ QUOTE ]

Be careful. THey gave you 1099G not W2G. I know a little bit about W2G, I don't remember what the difference is between the two forms but someone I know that used to deal with this stuff told me it is BS whenyou get a 1099 instead of W2.

[/ QUOTE ]

I just got a 1099 MISC this year for a $1k win in a freeroll (interestingly I won $100 the next month in the same freeroll and I believe they should have actually combined the two and sent me a 1099 for $1,100).

As I understand it a 1099 should be used when you win a promotion, sweepstakes, contest where you did not put up anything to enter. I also believe that the casino should issue the 1099 if they pay out $600 or more combined during the year to you in these types of promotions. I may be wrong about that, but it was my understanding that is what is supposed to happen, even though most casinos don't track combined wins if they are less than the $600.

RR · #9 01-30-2007, 09:31 PM

I don't know, but I know that Russ Fox knowns more about this than anyone on this forum so if he comments listen to waht he says.

fishyak · #10 01-31-2007, 12:12 AM

Took a close look and found it is a 1099-Misc from JP winnings. Is this still considered gambling winnings because this wasn't reported on W2-G?

I read IRS Publication 529 and it do not answer questions about using spouse's losses as an offset. It also didn't say you can't take off for expenses, but it clearly didn't say that you could either.

Gotta report it. Not reporting 1099 income is the fast track to real trouble. But report it where on the 1040?