If you’ve had gambling winnings, and received a W-2G or 1099, the IRS expects you to report them—whether or not you actually made money. Many people fall into tax debt because they don’t properly track their winnings and losses or fail to claim deductions correctly. Others simply can’t pay what they owe due to financial struggles from gambling.
A common mistake? Thinking you don’t have to report winnings because you lost overall. The IRS requires you to report all gambling winnings as income. Losses can only be deducted if you itemize, and even then, they can’t exceed your winnings.
The problem? The IRS only sees your gambling winnings from W-2Gs and 1099s. They have no record of your losses. If you don’t properly report both, the IRS assumes you only won and will tax you on the full amount, even if you lost more than you won! This can lead to unexpected tax bills, penalties, and even an audit.
The IRS is cracking down on gambling audits, and if you’re behind on your taxes, you could be at serious risk of:
- Wage garnishments and bank levies
- Tax liens that damage your credit
- IRS investigations into unreported income
The good news? You have options! Our team specializes in helping people with gambling-related tax issues. We’ll review your situation and create a plan to protect your finances and get the IRS off your back. You can click on the link below or call 201-479-2572 to schedule a free confidential consultation.
Remember, the longer you wait, the worse the penalties become. Call us now to get a fresh start!
Or you can fill out the form below.