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What to do with W2G What to do with W2G

10-14-2014 , 03:42 PM
Sorry if this question has been covered or is obvious.

I file as a professional (mainly a cash game player) and have - few W2G from tournament cashes last year. I included all my tournament wins and losses in my net income for the year and my reported income easily exceeds the totals of my W2G.

What I'm unsure about is what to do with the W2G specifically, if anything at all.
I've been told by some tax people I don't need to do anything with them as those winnings are included in my net results for the year, but I don't know how to make sure the IRS knows that. I was told that when they see i claimed more income than my W2G are for they should know but any clarification would be great.
If it matter, I lost in tourneys for the year.

Thanks.
What to do with W2G Quote
10-14-2014 , 04:19 PM
The IRS will expect your gambling income as reported by the casinos to the IRS on the W-2Gs to show up on your Form 1040 as Miscellaneous Income. Since you are reporting as a professional player, you should include with your tax filing copies of the W-2Gs with an explanation that you are reporting this income on your Schedule C instead. Otherwise, it is quite likely that you'll get a tax bill from the IRS for not reporting the W-2Gs on the 1040 regardless of the amount of income you report on your Schedule C (in which case, follow up with the explanation that you reported it as part of your business income).
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10-14-2014 , 04:40 PM
Thanks, that along the lines of what I thought. I can just include an explanatory letter with my return.
What to do with W2G Quote

      
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