re: Poker & Online Winnings - Taxes
From IRS Publication 529, Miscellaneous Deductions:
Gambling Losses Up to the Amount of
You must report the full amount of your gambling winnings
for the year on Form 1040, line 21. You deduct your
gambling losses for the year on Schedule A (Form 1040),
line 28. You cannot deduct gambling losses that are more
than your winnings. Generally, nonresident aliens cannot
deduct gambling losses on Schedule A (Form 1040NR).
You cannot reduce your gambling winnings by
your gambling losses and report the difference.
You must report the full amount of your winnings
as income and claim your losses (up to the amount of
winnings) as an itemized deduction. Therefore, your records
should show your winnings separately from your
Diary of winnings and losses. You must keep
an accurate diary or similar record of your losses
and winnings. Your diary should contain at least the following
· The date and type of your specific wager or wagering
· The name and address or location of the gambling
· The names of other persons present with you at the
· The amount(s) you won or lost.
Proof of winnings and losses. In addition to your diary,
you should also have other documentation. You can generally
prove your winnings and losses through Form W-2G,
Certain Gambling Winnings, Form 5754, Statement by
Person(s) Receiving Gambling Winnings, wagering tickets,
canceled checks, substitute checks, credit records,
bank withdrawals, and statements of actual winnings or
payment slips provided to you by the gambling establishment.
For specific wagering transactions, you can use the
following items to support your winnings and losses.
These recordkeeping suggestions are intended
as general guidelines to help you establish your
winnings and losses. They are not all-inclusive.
Your tax liability depends on your particular facts and
Keno. Copies of the keno tickets you purchased that
were validated by the gambling establishment, copies of
your casino credit records, and copies of your casino
check cashing records.
Slot machines. A record of the machine number and all
winnings by date and time the machine was played.
Table games (twenty-one (blackjack), craps, poker,
, wheel of fortune, etc.). The number
of the table at which you were playing. Casino credit card
data indicating whether the credit was issued in the pit or at
the cashier’s cage.
Bingo. A record of the number of games played, cost of
tickets purchased, and amounts collected on winning tickets.
Supplemental records include any receipts from the
casino, parlor, etc.
Racing (horse, harness, dog, etc.). A record of the
races, amounts of wagers, amounts collected on winning
tickets, and amounts lost on losing tickets. Supplemental
records include unredeemed tickets and payment records
from the racetrack.
Lotteries. A record of ticket purchases, dates, winnings,
and losses. Supplemental records include unredeemed
tickets, payment slips, and winnings statements.