gambling winnings on a 1099-misc (not w-2g)

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Latest post 02-11-2006 7:04 PM by Taxagent. 3 replies.
  • 02-11-2006 12:03 PM

    • cb5
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    • Joined on 02-11-2006
    • Posts 2

    gambling winnings on a 1099-misc (not w-2g)

    since the poker winnings are on a 1099misc under "other income" (box 3), my tax program is treating me like a business and not a gambler. It asked to describe the business (poker) and asked for a business code (I put generic 999999) my accounting method (cash, duh). I did not put down a business address or name or EIN because I obviously am not a business, but now it is saying that since I "actively participated" in the business I may be able to deduct travel expenses etc.

    I guess my question is should I continue with this or just report the income as gambling winnings and not worry about the fact that it's on a 1099-misc? and if I stick with the 1099-misc business angle, will I still be able to deduct gambling losses (yes, there are some).
  • 02-11-2006 3:18 PM In reply to

    Feedback [*=*] re: gambling winnings on a 1099-misc (not w-2g)

    Two things. First, you need to report this properly as a gambling winnings. To do that on your tax program, tell the program you have a W-2G and provide the information on your gambling winnings and losses. The program should correctly handle the gambling winnings from there. Unless you had withholding from the gambling winnings, the fact that you have a 1099-MISC rather than a W-2G won’t affect your return filing.

    Second, you should go back to the issuer and advise them that they should issue you a corrected 1009-MISC (to change that to zero) and instead issue you a W-2G. It is important that they issue you the correct tax document, both for them and for you. If the IRS sees that 1099-MISC and no self-employment income to account for it, you can expect to get a letter from the IRS in about a year proposing additional tax for the self-employment income that it looks like you received.
  • 02-11-2006 4:48 PM In reply to

    • cb5
    • Not Ranked
    • Joined on 02-11-2006
    • Posts 2

    re: gambling winnings on a 1099-misc (not w-2g)

    thanks taxagent. great info.

    the only withholding was 3% from the state that the money was won in. I guess I'll contact the casino on monday and see if they'll issue a w2-g instead and a corrected $0 1099-misc. copies of both I assume will be sent to the irs.

    hmmm. if I get a $0 1099 misc, do I have to report it?
  • 02-11-2006 7:04 PM In reply to

    Feedback [*=*] re: gambling winnings on a 1099-misc (not w-2g)

    “hmmm. if I get a $0 1099 misc, do I have to report it?”

    No.
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