However, you cannot report gambling losses that exceed your total gambling winnings. Income tax preparation is a recession resistant industry.
On the 1040
To satisfy the IRS, be sure to attach all forms regarding your gambling activity to your tax return.
The Roni Deutch Tax Center is one of the nation’s hottest income tax franchise. While the IRS may not catch you in the act if you do not report these smaller winnings once or twice, they may get suspicious if you report gambling winnings often, but only those that are verified by a W-2G Form.
. 1040EZ forms cannot be used to report gambling winnings. As such you want to make sure to report these winnings on your tax returns because the IRS obviously already knows about them. When you deduct the losses, do so on Schedule A on IRS Form 1040 as an itemized deduction. It will also make things easier when you need to prepare your return next April.
Attach All Forms
According to the IRS, a casino will need to report your winnings to the IRS if you win: $600 or more at a casino or horse track, $1,200 or more at bingo game, or $1,500 or more in a game of keno. However, these “comps” do not come without a price.
You must report your gambling winnings, prizes, or non-cash prizes on your Form 1040 come tax season. Be sure to report these amounts on your Form 1040 in the total payments section.
Get the Form
Whenever you win a “qualifying amount” at a casino, they are legally required to report it to the IRS. Do not make the mistake of trying to avoid the taxes by giving the casino incorrect information as this is very illegal and could get you into a lot of trouble.
Taxes withheld from your winnings should also be reported in Box 2 of the Form W-2G you receive in the mail. Learn more about this new tax franchise opportunity today.
You may think that people who get free hotel rooms, and tickets to shows from places they gamble at are pretty lucky. They are all considered gambling winnings by the IRS, and are subject to the same taxes.
Although smaller winnings will not be automatically reported to the IRS, it is still your legal duty to report them. There are several reasons why doing so is a good idea, including but not limited to the possibility of an IRS audit.
In addition to reporting your gambling winnings, you will also want to deduct your gambling losses. Depending on your winnings the casino may even withhold taxes from your payout. They will need to be put on line 21, with “other income”. This includes your W-2Gs or any other gambling-related tax documents. Therefore, they will collect your social security number and send you an IRS Form W-2G. It is both helpful and smart to keep a thorough log on your gambling activity, including winnings and losses, as well as where the gambling took place
Of course there is an entire method to the madness on how the opening line is created.
Oddsmakers can also change the line depending on various event-related factors such as player injuries or weather.
Power ratings are the oddsmaker’s value of each team and are used as a guide to calculate a “preliminary” pointspread on an upcoming game. By moving the line, sportsbooks can influence how the public bets on a particular game. That is not the case at all – their intent is NOT to evenly split the ATS result between the teams; rather, their goal is to attract equal betting action on both sides.
The last step in the line-making process for each oddsmaker is taking one final look to determine whether or not the line “feels right.” This is where common sense and past experience with how games are bet enters into the picture. Examples of non-game factors that would require an adjustment to a team’s power rating are key player injuries and player trades.
“You either have a passion for it or you don’t,” Seba said.
“The #1 thing for us is to make a line for each game that creates good two-way action. Mike Seba is a Senior Oddsmaker at LVSC and has been making lines for the last six years. Stated another way, they want to create a line that half the people find appealing to bet one way while the other half find it appealing to bet the other way (known as ‘dividing the action’).
Moving the line is the oddsmaker’s effort to balance betting action, and often times such moves can have a major impact on a bettor’s decision. If we’ve done that, we’ve done our job.”
What Is the Line Trying to Accomplish?
A round-table discussion among the 4-5 oddsmakers involved in making the line for each sport is then conducted and a consensus line is decided upon by the Odds Director before it is released to the sportsbooks. Also, adjustments are made after reading each team’s local newspapers to get a sense of what the coaches & players are thinking going into the game. “We’re not trying to pick the team that covers the spread, we’re trying to make it a coin flip, a tough decision (for the bettor).
Experts working for the individual books having a strong opinion on the game
Since the oddsmaker’s ultimate goal is equally dividing the betting action, public perception and betting patterns must be taken into account. Each of these oddsmakers bring unique opinions, strengths and weaknesses to the process.
Once the opening line is released by LVSC, the individual sportsbooks decide if they want to make any adjustments before offering it to the public.
. If an oddsmaker comes up with a preliminary line of USC -7, then an adjustment up to -7.5 or -8 would be made in response to the public’s expected USC bias. We do this by drawing from past experiences and applying them to current situations.
Divided action means the sportsbook is guaranteed a profit on the game because of the fee charged to the bettor (called juice or vig – typically $11 bet to win $10). People think it’s much more complicated, but it’s not.”
Once betting begins, sportsbooks can adjust the line at any time. Seba explained that it all starts with each oddsmaker creating a line on each game based upon their own personal approach. In our extended interview, Seba explained that there are 4-5 oddsmakers assigned to make lines for each of the major sports (pro & college football and basketball; MLB, NHL, boxing, golf). The power ratings are adjusted after each game a team plays. By necessity their approach is very research-oriented and concise, since with millions of dollars at risk there is little margin for error.
There is a common misconception that point spreads represent the oddsmakers’ prediction of how many points the favorite will win by. This usually includes having up-to-date power ratings on each team.
Once a game’s power rating based pointspread is determined, the oddsmaker will make adjustments to that line after considering each team’s most recent games played and previous games played against that opponent.
How the Opening Line Is Made
“The main objective is that our clients get equal action on both sides,” Seba said.
Why the Line Changes
Oddsmakers at LVSC are professional sports junkies who love what they do and would probably do it for nothing if you asked them, but they do get paid for it. Of the 4-5 oddsmakers, generally the 2 most respected opinions are weighed more heavily by the Odds Director before he decides on the final line.
The purpose of these adjustments, like all line adjustments, is to more equally divide the betting action. Reasons for such adjustments include:
The opening line is the first line created by the oddsmakers, which is then sent out to sportsbooks. Obviously, if the line comes out a week ahead of the event (which is the case in football), there is much that could happen during the week leading up to the event that could affect the line. For example, the public might have heavy betting interest week after week on a popular college football team such as USC. For example, if the pointspread on a game is 7 and most of the money is coming in on the underdog (taking the +7), sportsbooks will then move the number down to 6 ½ to try and attract money on the favorite. Oddsmakers have to determine if any changes are necessary and send out an “adjusted line.”
Individual books having players who consistently bet with certain tendencies (such as an extreme bias toward favorites or toward a certain popular team like USC)
Las Vegas Sports Consultants (LVSC) is the world’s premier oddsmaking company and the most respected authority on making the lines. In doing so they attempt to make more attractive the team that is getting less action
Patience: If you want big profits now, try the lottery. If you do not list every bet, you will have no idea where you stand, and no way of having data to look back and learn from.
Most folk are under the opinion that professional gamblers have one bet, play one game of poker, or some other form of gambling, and then collect the winnings and go back to their big mansion for a few months rest, before having another gamble!!. Do not do that, be truthful.
You can also find innumerable free horse racing systems, staking systems, poker systems, on the internet, ignore them, they are only free for a reason, as they lose hard cash.
I pray it was like that, but in valid life it is vastly different. And how innumerable average gamblers have $100 to bet, especially when you need a betting bank, and with $100 stakes, the cash you need before you even place one bet is around $3,500, any less and you can easily blow it all. Betting Banks: If you do not have a betting bank to emergence with, and you are just betting from whatever is in your pocket, you will never make a profit. Most professionals will emergence at 3%, but get it down to 1% as the bank grows.
4. This is usually suicide, you do not see the big boys in the city markets investing everything in one stock do you? No. Search the web for reviews on every product before parting with any money; ask people on forums which software is the best.
Also think why various tipsters advertise every day. Fun Bets: You are often told not to do any ‘fun bets’ if you wish to turn professional, but this will not happen, as it is hard to break old habits at first. It is as simple as that. If you cannot profit with 10c bets, how the hell will you profit with $100 bets?
7. I personally work 10-12 hours a day, 360 days a year, and still do a bit on the days off, including Christmas day. Always onset with levels, if you cannot make hard cash with that simple staking plan you will not make bankroll with anything more complicated. Once you have proven over a few months you can turn a profit with level stakes, and then you can switch to each bet being between 1%-3% of the bank. Then divide the $26,000 by the $100 to work out how many points you make a year, and that is 260, then divide by 52 to see how numerous points profit a week, and that comes to 5pts a week. Most punters lie to themselves that they are breaking even. You may have a spare $10,000 available, but prove you can profit with a $1000 bank maiden, and then add to the bank monthly.
5. Forums: Join a forum where you can bite ideas, this can prove a powerful aid, but make sure it is a decent one, and not full of idiots just spouting off how good they are!
2. Building up you betting banks takes time a lot of time.
8 Top Tips for Becoming a Professional Gambler in Horse Racing, Poker and Other Sports
by: Keith Driscoll
So here are the 8 tips you need to learn, and stick to religiously if you want to stand a chance of ever making money from gambling.
8. Use a number of systems, proven tipsters, method bets, etc. And ensure you have a separate betting bank for each (you can use the same betting account, as the spreadsheets you keep will tell you the amount which is in each bank).
1. That may not sound much but you have to learn to walk before you can run. When you see professional poker players they are spending 3-5 days at a table in a game every week, sometimes sitting for 12 hours, and when they are not doing that, they are at home playing poker on the computer.
3. Alcohol: NEVER drink while betting, you will bet more than you should, you will bust banks, you will play bets you would never do when sober.
When you see tipping advertisers stating things like “We made $26,000 to $100 stakes in the last 12 months”, it looks sensational. Bank Management: Managing banks is not just staking, it also involves listing every bet on a spreadsheet so you can monitor things like average odds, strike rate, losing runs, etc. This is because they have such a considerable turnover; they need to keep replenishing the customer base. Anyone who tells you otherwise is possibly lying just to receive your hard cash.
These days it is possible to receive horseracing software, poker software, etc that can facilitate you, they will only make you hard cash if you are already doing so, they just enhance your skills, not make them. The best way to treat fun bets is to handle them as you would any pro bets. Yes it can pay well, very well, but you need to put in a lot of work, and it can be 2-3 years before you are making any meaningful hard cash. Risk Management: Most people follow one tipster, or one system. Staking: You see betting plans for sale on EBay, most of them may make you a few dollars quickly, but it is 100% guaranteed they will bust your bank as these are designed by amateurs who have no understanding of gambling maths in the real world. However, they need to receive your attention as a 1/8th ad in a paper costs around $500, and they need that money back before turning a profit. This advice goes for betting in any country, on horseracing, greyhounds, soccer, NFL, poker, etc.
So if you are looking for a relaxing life, do not take up betting as a profession. This does not always mean the tipster is rubbish, in some cases they may be profitable long term, but the average Joe Punter always wants profit NOW and every day, and average Joe points more than 5 points per week, whereas a full time professional would be happy with that.
If you are going to gamble to profit, then for the inaugural few months this should be your conditioning were you will be doing a lot of work for little return, but you will also learn how to handle losing runs, how to cope with mistakes, and if it does all go improper and you lose the betting bank, you should have learnt a lot from it for as little loss as possible, as you should only ever bet what you can afford to lose, especially while proving to yourself you can profit. They spread it around, and so should you. Separate betting bank, list all bets, and it will not be long before you lose the bank and realise how wonderful your own tipping is!
6. Wow!! If you are just starting off you are likely to only be using a realistic $5, so that is $25 a week average