FlyerTalk Forums - View Single Post - Taxes on AA Miles Prize

Mar 31, 2011 | 3:35 am

#24

nrr

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Join Date: Jul 2003

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Quote:

Originally Posted by guv1976

Wirelessly posted (BlackBerry8530/5.0.0.601 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/417)

I think that the casinos issue 1099's, not W-2's.

And a non-professional can only deduct gambling losses against winnings if (s)he itemizes deductions; if you do not have enough deductions to justify itemizing, then you are out of luck, and get to pay taxes on your winnings, even if you had a net loss from gambling over the course of the year.

Of course, this may all be moot for the OP, since it appears that -- even if one itemizes -- one cannot deduct gambling losses against non-gambling "prize" income of the type involved here.

For slot jackpots of $1200 or more they issue W-2G. For slot tournaments they issue 1099. The W-2G is offsetable up to losses, the 1099 (unfortunately, for the non-pro) counts as ordinary income.