Feb 17, 2007  The $1200 threshold is indeed true for wins on slots or video poker. Fortunately it does not matter if you build the bank up from small wins but if you hit a win of 1200$ or more it is taxable at 30%. I hit 4 Aces on white hot Aces for $1200 and was gutted to. If you receive $20000 worth of w2g for online blackjack winnings over $1200 and only win $2000 total at the end. Although you are obligated to pay taxes on your net win at the end of the year regardless of how many W2G forms you have, a payout of $1200 or more will necessitate a wait and obligate you to tip the person paying you. In less classy casinos a hand pay will also cause the tip vultures to start hovering around you. To avoid all of this sometimes.

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You can get win / loss statements from B&M casinos, although the can't be used for tax purposes because they are estimated at best.
Surely you should be able to get a w/l from online, and it should be accurate! But the IRS may still not allow it, even if you get one.
Sigh, you're in for a heck of a fight..

You can get win / loss statements from B&M casinos, although the can't be used for tax purposes because they are estimated at best.
Surely you should be able to get a w/l from online, and it should be accurate! But the IRS may still not allow it, even if you get one.
Sigh, you're in for a heck of a fight..

He's not in for a fight. There's no fight to be had. He just needs to file correctly and accept the huge tax hit due to his inflated AGI. Ignorance of the law isn't an excuse, even if the law is terrible.

You can get win / loss statements from B&M casinos, although the can't be used for tax purposes because they are estimated at best.
Surely you should be able to get a w/l from online, and it should be accurate! But the IRS may still not allow it, even if you get one.
Sigh, you're in for a heck of a fight..

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The OP is in a tough spot admittedly. But seems to know the 'whole story', should write it down if not already done. Long, complicated, detailed with every bit of info from every source possible. Back up with every printed record from every source possible, including the 'estimated win/loss statements'. Put together a simple summation of all the data that can then be presented as a summation. And carry along all the notes, receipts, statements, everything that can be obtained including evidence of persistant attempts to obtain that which so far has been unobtainable. Have it all organized, be able to explain the organization of the piles of records that have been summarized and how that was done.
I'm sure there are exceptions, particularly if you happen to be a political 'target', but generally speaking the taxman just wants you to pay your 'share' as the rules are written. Imaculate records, yes even if not composed contemporaneously, will go a long way. Showing up and claiming that you are pretty sure you lost more than you won without a significant and organized body of evidence to support that statement, well that will probably not be rec'd well.. You really need to appear to be one of 'the good guys'. Tell em you just want to make sure you are paying enough ( cough, gag ).
All just my non-professional opinion, of course ;-)Are you married? If so, this would be a dream scenario for the option to file separately. Put all of the deductible items under your spouse for this one year.
Wait..question..it's October 16th. April 15th was 6 months ago. You're working on 2014 taxes? Do they want you to pay interest on the taxes that they think you owe?

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Are you married? If so, this would be a dream scenario for the option to file separately. Put all of the deductible items under your spouse for this one year.
Wait..question..it's October 16th. April 15th was 6 months ago. You're working on 2014 taxes? Do they want you to pay interest on the taxes that they think you owe?

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Thank you all. Wow, super helpful. I just filed the extension yesterday, October 15. I had already paid most of the tax due in April but when I really did the return, the AGi flew off the charts adding the extra $10k. I applied and received a payment plan so I have 120 days to pay it off. Won't be a problem.
And YES, I am married! I think I will end up doing an amended return. And will redo the whole thing to file separately.

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Thanks so much!

He's not in for a fight. There's no fight to be had. He just needs to file correctly and accept the huge tax hit due to his inflated AGI. Ignorance of the law isn't an excuse, even if the law is terrible.

I do believe I've done it all as correctly as possible. I'm just thinking I should amend my return. I have read some research about this very issue and it appears I need to show ALL of my wins (for every hand of play)...this would be many millions of dollars, but for this year year it doesn't make a difference at this point. I just change my losses to reflect the same.