If you’re a professional gambler, Uncle Sam will cut you some slack.
But if you’re just a casual gambler, you better not bet on the IRS to make things easy for you.
In fact, if you play your cards the wrong way, you could wind up an odds-on loser.
My advice? Before you head over to your favorite casino, take a moment and read my new article titled Tax Tips: Q&A: Find Some Tax Sanity by Using the Gambling Per Session Rule.
Three ways our fact-filled article can help you:
- We’ll explain the right way to report your winnings. If you’re lucky enough to have any winnings, you’ll have to report them above the line. And this can hurt you. Why? Because your winnings can increase your taxes, cause a loss of deductions, and increase your Medicare premiums. And that’s just for starters. You’ll get the whole story when you read the full article.
- We’ll tell you how to report your losses. Your losses are below-the-line itemized deductions and can help you only if you itemize. If you don’t itemize, you can kiss the “benefits” of your losses goodbye. We’ll give you all the sad details when you read the full article.
- You’ll learn how the “per-session” rule can limit the damage. Here’s some semi-good news. If you’re a casual gambler, you’ll pay lower taxes if you use the per-session reporting method. This means you net your activity for the day. All will be explained when you read the full article.