Here are three basic tax rules on gambling that every winner should know who gambles in an Idaho Casino.
Rule 1: Your Idaho winnings are taxable. Your gambling income is taxable. And are often times reported.
The Idaho casino must report your winnings on Form W-2G and send a copy to you and the government. The government knows when you don’t report enough gambling income on your Idaho tax return.
Rule 2: Keep records of your losses while in the casinos. You can offset your Idaho gambling winnings with your gambling losses. To do this you must keep good proof of those losses. The IRS and courts expect you to maintain a “contemporaneous gambling diary.”
You face specific rules for a gambling diary depending on the type of gambling you’re doing in an Idaho casino. For example, with slot machines, the IRS advises that you record the machine number, date, and time played to support your winnings. Often, you can find the machine number clearly displayed on the machine. If not, simply ask the Idaho casino operator for the machine number. Player cards usually do this for you.
Rule 3: You cannot claim net losses. If your Idaho gambling losses exceed your winnings, you get no deductions for your net loss. Further, the net loss does not carry forward. It will just disappear.