Most people do not know this, but your big winnings in the casino are not free from tax. These taxes are not deducted from your winnings, but you are expected to pay them when tax time comes. By keeping a gambling logbook, you could deduct your losses from the tax you are required to pay.
Most laws require you to pay taxes on winnings above a certain limit. If you win a huge pot at the slots, for example, the casino will most likely give you a tax information form. This form contains your name, address, and social security number. During tax time, you are then required to pay a percentage of your winnings.
Paying taxes is of course not a bad thing. It is your financial contribution to the country. But paying the taxes of a win you made a long time ago could be burdensome. Most people tend to forget about their casino trip and their financial obligation. Thus, if they won a huge amount, they will be greeted by a surprisingly large number come tax time.
But there is an easy solution to this matter. The tax you need to pay from your winnings could be reduced by the amount that you have lost at the games. To do this, you need to have a gambling logbook.
Logging your gambling activities is not at all troublesome. When you visit the casino, you just need to bring a small notebook and a pen. Tally the date of your visit and the amount of your original bankroll. Each time you play at the machines, list down the serial number of the machine, the length of your play, how much your bet is and how much you have won and lost.
If you go on a series of casino visits, it would be best if you continue this practice. In the event that you win big, you could deduct how much you have lost from the taxes you are required to pay for your winnings. If you play often at the casino, you will most likely pay nothing.
Another good thing about keeping a gambling logbook is that you will be able to track your betting tendencies and frequency. By doing so, you can create a good game plan on your next visit to the casino.
Remember, being prepared is much better than losing a lot of money. You can’t really say when you will hit it big at the slots. Bring a small notebook when you next visit the casino. Tally all the pertinent information, especially the serial number of the machine and how much you have lost. By doing so, you could reduce the amount of tax you need to pay through your winnings come tax time.