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Yes, a non-w2 wage earner has income that is not tracked by a w2 ... The general issue with gambling wins is not that the IRS doesn't know (casinos report winn
by lesuorac 3y ago
Yes, a non-w2 wage earner has income that is not tracked by a w2 ...
The general issue with gambling wins is not that the IRS doesn't know (casinos report winnings) its that they don't have to report losses.
- artursapek 3y agoWhat? Casinos don't report all winnings. Anyone can get chips for cash, and cash for chips.
- jdmichal 3y agoIndeed, there's a size limit on reportable winnings that trigger the necessity of a W-2G. There's also potentially different requirements that trigger tax withholding by the payer. It's generally $600 for winnings, and $5000 for withholding. https://www.irs.gov/pub/irs-news/at-01-17.pdf https://www.irs.gov/pub/irs-news/at-01-17.pdf https://www.irs.gov/pub/irs-tege/gaming_withholding_reporting_threshold.pdf https://www.irs.gov/pub/irs-tege/gaming_withholding_reportin...
- jdmichal 3y agoAnother asymmetry: Winnings are always included while losses are itemized. Which means if you take the standard deduction you cannot write off the loses, but still have to include the gains.