Tools to recover your gambling taxes paid in the United States
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Every serious player has a logbook in order to keep track of his/her wins and losses. This log will become your main tool when preparing to file for an income tax return from the Internal Revenue Service (IRS). Gone are the days when you could simply declare an equal amount of losses and gains and receive a return of withheld taxes. Nowadays your claim must sustain a thorough verification. This verifications always starts, and often ends, with the examination of your log of wins and losses from the claimer.
Yet, how does one go about creating such a log that will satisfy the most inquiring IRS agent? First, you must insert the date and time, the location, and the game(s) played. Location may be a casino, racino, horse track, a public place or a private home. However online casinos do not qualify, even if you played from the United States, which is practically impossible nowadays.
It's also important to record the exact amount won/lost and the game played. It's important to remember, as we told you in previous articles, that all games are not subject to an automatic taxation. However I would suggest you enter all the games played in your log and to sort them out only at the end of the year. Your log might then be used to determine what activities you might let go or which you might spend more time playing.
In order for your log to hold up well, we suggest inserting, whenever possible, the names of playing partners, especially if you often play against the same opponents. It's possible that your opponents have the same information as you in their own log, if they won or lost large amounts against you. Obviously your best chances are when the same results figure in different logs.
Aside from your gaming log, other elements will help support your claim to the IRS. First, a good money trail can be very useful. For example, it would be easier to claim a loss of 50 000$ at a Bellagio table if you transferred by wire such an amount before traveling there to the casino cage. You should also keep any receipt of automatic withdrawals or of cage withdraws.
In the same frame of mind, it's essential to keep your tournaments entry receipts as well as your sports betting or horse track bets.
Finally, I cannot stress enough the importance of good log keeping. Nowadays, with smart phones, it's easier than ever to keep a good log. A loss in January might be quite useful to offset a big win in November, as long as you remember it...