Gamblers If you enjoy gambling at the various casinos! Special rules for winners …

The Tax Court shows it’s love …

1. A gambling session is from 00:01 or 12:01am to 24:00 or midnight

2. So keep a diary of amount you started with, all winnings during the 24 hour period, and all losses (the easy way is)

3. Starting amount minus amount at or before midnight; that is your win or loss for the “Session”

4. I.E. you start with 100 you win a jackpot of 3000 you keep playing and at midnight all you have is your credit card and the clothes you are wearing, this session was a loss of $100 — even though you will get a W-2G saying you won $3000.

5. By accurately and CONTEMPORANEOUSLY keeping track you can save a bunch of tax as this allows you to take deduction without itemizing.

6. This technique will also assist in keeping your Medicare premiums (IRMA) from spiking due to an alleged big win.

7. This can also save a major state tax as almost all states start with FEDERAL AGI (adjusted gross income)

8. States like CT who have no itemized deduction, whatsoever, will share your joy by taxing you only on the wins with no offset UNLESS as described above.