Website Gambling W-2G

[Corduroy Frog]

Website gambling on sports has exploded in last couple years.  One advantage, is they are able to track losses more accurately than anything available in the past.  I'm wondering how they will issue W-2G information statements.

Assume for the calendar year, John H wins $5000 in one lick.  And then has $4300 in accumulated losses during the year.  All the money is kept on deposit except $250, meaning he has taken out $450, leaving the rest.

GetRickQuickonBeachVolleyball.com is the website.  How do they issue the W-2G?

a.  $5000 Gross Winnings 

b.  $ 700  Winnings after Losses

c.  $ 450  Winnings taken out of account.

d.  ?????

 

[jklcpa]

Have you tried looking at that website's Help or FAQs?

[joanmcq]

They should issue it for $5000 gross winnings plus all the small winnings he has had over the year.  And issue a statement showing his losses.

[Corduroy Frog]

2 hours ago, jklcpa said:

Have you tried looking at that website's Help or FAQs?

No.  The website I portrayed is fictitious (to appeal to John H), and I don't want to access a real website because they will do everything imaginable to spam me.  My real question is whether a participant can avoid W-2G income by leaving money in the account.

[kathyc2]

3 hours ago, Corduroy Frog said:

My real question is whether a participant can avoid W-2G income by leaving money in the account.

5K is taxable and shows on W2G.  He took 4,300 from account by gambling.  He took 450 cash out.  The 250 left he can take out.  

He can claim 4,300 loss on Sch A.

[Yardley CPA]

I have a client who provided me with 64 W2-G's for 2023 amounting to nearly $350,000 in winnings from the same online "casino".  He has proof of losses exceeding his winnings.  In Box 3, Type of Winnings, all reflect Slots.  There is also an amount listed next to each "Slot" entry.  I've never seen a dollar amount populate Box 3 before.  I assume it may be the amount he played during that session but not entirely sure and the website does not clarify that.   

[Lion EA]

Constructive Receipt.

[Corduroy Frog]

Thanks to all.  Leaving it on the web still means he could have had access to it under the doctrine of constructive receipt.

[JohnH]

 

On 3/25/2024 at 4:11 AM, Corduroy Frog said:

No.  The website I portrayed is fictitious (to appeal to John H), and I don't want to access a real website because they will do everything imaginable to spam me.  My real question is whether a participant can avoid W-2G income by leaving money in the account.

Actually winning anything at gambling would also be fictitious if JohnH is involved. Don’t ask me how I know…

[Terry D EA]

I am dealing with this very thing for real. Well, sort of. I am not well versed on gambling taxation. My client has 1099G gross winnings totaling 42K. He has receipts for buy-in wagers for 43K. Can he deduct the 42K on Sch A?

This client states they are a professional gambler. However, the IRS would disagree because he has another job that nets him 200K each year and doesn't spend the 40hrs per week. So, I am taking the position he is an amateur. I'm just confused on the deduction above as is seems to easy. 

[BrewOne]

I agree on the pro/am call.  And yes, gambling losses (to the extent they are reporting gambling winnings) can be reported under "Other Itemized Deductions" on Schedule A (IRS Topic no. 419).  Also Publication 529