Luckystrategy

1. Do You Have To Claim Gambling Winnings On Taxes
2. Forgot To Claim Gambling Winnings On Taxes
3. Do You Have To Claim Gambling Winnings On Your Taxes
4. I Forgot To Claim My Gambling Winnings On Taxes

The best craps strategy is to learn how to play the game, understand the basic bets which offer the best odds, and stick with those bets. Betting systems which involve raising and lowering your bets based on some arbitrary criteria are a bad idea, because they don’t affect your chances of winning. Hedging your bets is also a bad idea.

Craps is a straightforward casino game, but the bewildering number of bets, many of which are the worst bets in the casino, make it a profitable enterprise in every casino. The strategy that we recommend involves being realistic and having fun while you play. This page looks at some strategies to avoid, and it also explains which legitimate strategic choices actually make sense mathematically.

Learn How to Play

This hidden gambling tax can affect both lower income and higher income retirees but in different ways. For lower-income retirees, a hidden gambling tax can occur because increased MAGI increases the amount of your Social Security benefits subject to taxation and reduces your eligibility for a tax credit on health insurance.

The best way to learn how to play crap is to take one of the free classes that the casino offers, but keep in mind that they won’t go into a lot of detail about which bets are best and which bets are worst. They will show you how the action works, though, so if you’re new to the game, taking one of these classes is a great idea. There is no faster way to learn the game, in fact.

Know the Best Bets

The number of good bets at the craps table is relatively small. If you stick with these bets, you’ll minimize the house edge, which is the percentage of every bet that you’re mathematically expected to lose over the long run. Don’t be fooled by short-term standard deviation. In the short run, which is longer than you think, anything can happen. The smart play is still to stick with the bets offering the best odds.

The only good bets at the craps table are the following:

1. Pass
2. Don’t Pass
3. Come
4. Don’t Come
5. Free Odds
6. Place Bets on 6 and/or 8

The house edge for pass and don’t pass bets (and for come and don’t come bets) is only 1.41% and 1.36% respectively. That means that the casino expects to win $1.41 (or $1.36) for every $100 you wager at the craps table. Compared to the house edge of 5.26% at the roulette table, this is a lot of entertainment for very little money. And if you take the free odds when they’re available, you can reduce the house edge even more.

On the other hand, most of the proposition bets on the craps table have a house edge of 6% or more. Some of them even have a house edge in the double digits. Don’t waste your money placing bad bets. You’re better off spending that money on a show or something.

Don’t Forget to Claim Your Winnings

One common error that neophyte craps players make is forgetting to pick up their winnings from the table. If you leave it on the table, it’s considered part of the action on the next roll, so be sure to pay attention and claim your winnings when you want them.

Craps Systems Don’t Work

Any number of bogus systems involving changing the size of your bets based on a variety of criteria are available. For example, one system might have you increase your bets when the shooter wins. The stated goal of such behavior is to increase the amount of money you have in action during a shooter’s hot streak.

The reason this doesn’t work is called the gambler’s fallacy. This is the name mathematicians give the idea that previous events have an effect on subsequent events, when in reality, these events are independent of each other.

The thinking goes like this. If a shooter has won four times in a row, he’s hot, and you should bet more in order to take advantage of his winning streak. The fallacy is that the fifth roll’s math has no relation to the previous bets.

Sizing Your Bets

You should bet an amount you’re comfortable with, and you should also put as much money into the free odds bet as you can. For example, if you’re playing in a casino that allows double odds, then bet 1/3 of what you’re comfortable with on the pass line, and bet the other 2/3 on the free odds. By doing so, you’re reducing the house significantly, because the odds bet has no house edge—it pays out at true odds. This turns a good bet at the craps table into a great bet.

Getting Along with the Other Players

We’re big believers that your #1 goal at a gambling table should be to have as much fun as possible. If you win money on top of that, then that’s just gravy. So here’s a craps strategy recommendation that focuses almost exclusively on having fun, proper etiquette, and it’s aimed at new players:

Avoid the don’t pass and don’t come bets.

The odds are slightly better on those two bets, but it’s probably not worth it, because you’re betting against the shooter and most of the rest of the table. Some people might find that to be too confrontational for their tastes.

Besides, isn’t it more fun to root for someone to win, especially if everyone else is? Rooting for someone to lose is just a downer. And that’s bad strategy.

Do You Have To Claim Gambling Winnings On Taxes

CASINO GAME RULES

Most gamblers hope to win money when they visit a casino, but many fail to think about the taxes they would have to pay on their winnings. Meet George and Frank, two American friends who spend a weekend gambling at the Las Vegas Bellagio. George wins $200 playing video roulette. Frank wins $1500 on a quarter slot machine (Play here). Both men make some significant financial mistakes that could get them into trouble with the IRS.

Mistake # 1: Frank Fails to Pay Taxes on His Winnings

Before leaving the casino, Bellagio officials ask Frank to supply his Social Security number and fill out a W - 2G stating his $1500 winnings. When tax time rolls around, Frank forgets about the W – 2G and does not report the $1500 on his tax forms.

Could Frank Get in Trouble?

If Frank gets audited, he could indeed get in trouble with the IRS for failing to report his gambling income. Federal law mandates that slot machine winnings over $1200 must be reported to the IRS. The law also requires horse racing winnings over $600 and keno (click here) winnings over $1500 to be reported. Frank's legal obligation does not end with the W - 2G he filled out at the casino; he must also claim his winnings on Line 21 of his 1040. Failing to do this could result in stern penalties from the IRS.

What About George?

Bellagio officials did not ask George to fill out a W – 2G because his $200 earnings fell below the IRS threshold. Technically, however, he is supposed to claim his $200 winnings on Line 21 of his 1040 just like Frank. Unlike Frank, George stands little chance of getting caught if he fails to do this because there is no paper trail documenting his jackpot (read more). The only punishment George is likely to suffer is the discomfort of a guilty conscience.

If your winnings surpass the predetermined threshold, casino proprietors are required by law to have you fill out a W – 2G which reports your extra income. If you fail to submit this information to the IRS at tax time, government officials could catch a whiff of your paper trail and come after you. If your casino winnings do not surpass the predetermined threshold, you are still required by law to report the money, but without written evidence, the IRS stands little chance of catching you in your dishonesty.

Mistake # 2: Frank Itemizes His $4000 Gambling Loss and Cheats Himself Out of the $5,950 Standard Deduction

Frank carefully records his losses at the Bellagio in a small notebook he keeps in his pocket. At the end of the weekend, he calculates a $4000 loss. When tax time rolls around, Frank itemizes this $4000 loss and feels like a tax-savvy gambling superstar. Unfortunately, the $4000 is Frank's only itemized deduction for the year and he's actually cheated himself out of a significant chunk of money. If Frank had bothered to do some research, he would have known that the standard deduction in 2012 is $5950. By itemizing only his $4000 loss at the Bellagio, Frank cheated himself out of an additional $1950 deduction.

Forgot To Claim Gambling Winnings On Taxes

The Moral of the Story

You can itemize gambling losses on your tax forms in order to recoup some of your lost money, but always find out what the standard deduction is first. You will only come out ahead if your itemized deductions add up to more than the standard deduction.

Mistake # 3: George Itemizes His Gambling Losses, Which Are Greater Than His Winnings, and Gets in Trouble

After examining the pocketful of ATM receipts he accumulated while at the Bellagio, George realizes that although he won $200, he lost a total of $800. When tax time rolls around, George reports the $800 loss under the miscellaneous deductions section on Schedule A. He also reports his $200 winnings on Line 21 of his 1040. Unfortunately, George does not realize that deducted gambling losses cannot legally exceed gains. He gets audited and fined for failing to comply with this IRS regulation. It is perfectly acceptable to deduct your gambling losses, but you must also report your winnings. On top of that, your claimed losses may not exceed your stated winnings. George can legally claimed a $200 loss because he won $200, but he cannot legally claim an $800 loss in this scenario.

Mistake # 4: George Fails to Document His Gambling Activities in an IRS-Approved Fashion

George is notified by the IRS that he is being audited and needs to provide legal documentation of the wins and losses he accumulated at the Bellagio. He digs through his suitcase, reassembles his collection of ATM and players card receipts, and submits these slips of paper to the IRS in a manila envelope. IRS officials reject his envelope, stating that this piecemeal form of documentation is unacceptable.

Conclusions

It is wise to track your casino expenditures, but saved receipts are not enough in the case of an IRS audit. Wins and losses should be logged in a notebook which includes the location, date, and amount of money won or lost. Game stubs are also acceptable documentation, but ATM and players club receipts are not.

All Americans must report gambling winnings to the IRS, regardless of what state or country they are in when they win. Gambling proprietors are required by law to report guest winnings that exceed certain predetermined amounts to the IRS. If you don't report your winnings and are audited, you could get in trouble.

Citizens are permitted to claim gambling losses on the miscellaneous deductions section in Schedule A, but losses may not exceed winnings. If you're thinking about itemizing gambling losses on your taxes, experiment with different deduction scenarios to see which will give you the biggest benefit.

Finally, keep track of your wins and losses in a detailed notebook. If you do get audited, IRS officials will only accept certain forms of financial documentation.

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Do You Have To Claim Gambling Winnings On Your Taxes

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I Forgot To Claim My Gambling Winnings On Taxes

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