Tipping Handpays

Tipping Handpays

Tipping Handpays
Tipping How Much To Tip
Tipping is a topic that is always debated. Most can find common ground on how much to tip for a pizza delivery or a beer at the bar, but for most, tipping in casinos is a total mystery. There are a large number of casino patrons who do not realize that they should be tipping at all. On the other end of the spectrum, there are players that may be tipping too much. Of course, as is the case with all forms of tipping, your own discretion will be the deciding factor.
Hand pays can range from a few hundred dollars to hundreds of thousands. One tipping rate that comes up again and again is $20/$1,000 of winnings. So, if you hit a $4,000 royal flush you'd tip the attendant $80. That seems pretty reasonable to me.
There are a handful of different people that you will need to consider when it comes to proper tipping etiquette in casinos. In this article we are talking about casino specific employees, like waitresses/waiters, dealers, and slot machine attendants. You will also have valets and bell desk workers to consider tipping, but these are more closely related to hotel work than they necessarily are to casino play itself.
Tipping DealersIf you are an active table games player in the casino, your most frequent interactions will be with dealers. Whether you are playing roulette (in this case, the dealer is called a croupier), craps (here they are called stick men), or blackjack, the game is always going to be you vs. the house, who has employed the dealer to battle with you.
Yes, dealers are paid. How much they are paid varies wildly by position within the casino and the casino itself. Most poker dealers earn less than floor dealers. Conversely, most poker dealers do not pool tips while table (pit) games dealers do pool tips. With this said, there are some poker rooms that do pool tips among dealers, however rare they may be. No matter their post, dealers rely heavily on player tips for the bulk of their income.
Rodeos are well known for their adventure and electric atmosphere. Cowboys, horse riders and other performers assemble to show off their breath-taking rural skills, from tricks on horse back to taming bulls and rounding up other livestock with lassos and riding skills. Casinos will issue W-2Gs for winnings greater than $1,200 from a slot machine or $5,000 from poker. The moment you hit the jackpot, a casino staff member will bring the W-2G to you at the machine to get a signature (although new technology is emerging in high limit slot areas that lets players electronically sign the W-2G so they can get back to playing right away). Answer 1 of 31: Can somebody please tell me what this tipping is for, I mean so let's say if I do win 10k at a slot machine when it comes to cash in, there is a box in the taxes forms for tipping right or wrong? And the amount of tipping is a percentage? Tipping slot attendents was appropriate when they had to lug bags of nickles or dollar coins to refill machines. It was also a case where the nickle machines would lock up for handpays of $50. As for a handpay with IRS form, I am not sure I would always tip at $1200. If I was down 1200 at that time.

Most players only tip when they are having an outright winning session. The second most common time to tip is after an individual big win, regardless of your overall session results. As a whole, it is rare to see players tip when they are losing, and exceedingly rare when they are down big. With that said, some losing players will forfeit their last few dollars and instead toss them to the dealer. At a certain point there is little chance of coming back, so these players figure it is better to show some good karma towards their next session.
How Much and When to Tip Casino DealersThe amount that you tip, of course, is relative to how large of stakes you are playing. With that said, you should use day to day economics to be reasonable. For example, if you are playing $25 per hand blackjack and win $500 on the session, a $10 tip would be logical. In fact, many wouldn't even tip in this situation. If you are playing $1,000 per hand and win $5,000, $10 or $25 would still be acceptable. You would not increase the tip tenfold because the win was tenfold. As a general rule, consider the work volume, the quality of the dealer, and then look at the amount won. $5,000 won on $1,000 wagers is only 5 bets, while $500 won on $25 is 20 bets. Everything is relative. If you won $5,000 on much smaller bets, then yes, bumping up the amount is reasonable. 
In games where there is less likely to be big walk away wins like blackjack, you may find tipping on a 'per win' instance to be better. Roulette or Pai Gow (when playing the bonus) are best for this. If you hit a number in Roulette or a big bonus side bet in Pai Gow, you will likely have seen your biggest win on the session. Share the rush of excitement with a tip for the dealer. Let's be honest, it's tough to walk away from roulette with a big win, but you will have some here and there, so share the wealth when you can. League of legends gambling. If you are having a tough day and a few inside hits don't really chip away at your losses, you shouldn't feel guilty for skipping the tip.

In real life, most players will toss a few singles or redbirds ($5 chips) here and there throughout a session. This is a way to keep dealers happy, you happy, and the game rolling. Even a few dollars is appreciated, and it will likely bump your experience quality as well.
Winning (or losing) should not always be the main reason why you tip. No dealer can actually control outcomes, so you should pay most attention to their level of skill. If dealers are personable, go out of their way to help you, and are efficient at their task, they deserve a tip. If a dealer is rude to you or performs poorly (unless you know they are new, in which case, toss them a few dollars for encouragement), there is not much reason to tip. Don't go out of your way to reward bad behavior, but take care of those who are putting in effort to take care of you.
Tipping Poker DealersTipping a poker dealer is different than when you do the same for table games. Usually, believe it or not, dealers make more at lower stakes than they do in higher limit games. The higher percentage of amateur players, the more they are willing to tip the dealer.
Many regular, or professional poker players tip around $1 per pot that they win (assuming a flop is seen). Others will tip $1-$2 for anything they qualify as a large enough pot. Others still will tip, $5, $10, or even $25+ when they win a bigger pot. Tipping in poker varies wildly, but if you tip a few dollars for any moderately sized pot or larger, you will be falling into the average.
Playing for the Dealer

Instead of tipping the dealer outright, you can also play for the dealer. This means that you will place a wager that will go to the dealer's pool in the event of a win. This is common in table games. To place a bet for the dealer in blackjack, place your own wager, and then place the dealer's wager right next to it, half way on the betting circle. You can even announce 'for the dealer.'
If you bet $5 for the dealer and win, they will have a net of $10. In some casinos the dealer will collect the $10 themselves, in others you will need to toss it to them. It is common courtesy and etiquette for players to double a dealer's bet in the event of a double down or split, though it is not necessary. Playing for the dealer is a fun way to have everyone involved in the action for the tip itself.
Tipping Casino ServersTipping a server in a casino is very similar to tipping a bartender. The most commonly accepted barometer for casino waitress tips is about $1 per drink. The servers are not usually making the drinks themselves, but instead putting in the orders and then completing the delivery. Their job is to fill up a tray as much as possible and deliver ordered drinks in the most timely and efficient manner possible. 
If your waiter brings your drink, as ordered, back to you within a few minutes, they have done their job. In a bar, you may tip more for mixed drinks than a simple beer, but for a waitress, unless they are chopping tips, these drinks require roughly the same amount of work. Of course, if you are giving more complicated instructions, or the server is going out of their way to bring you a stronger or generally higher grade drink, you should consider tipping a few dollars extra.
For a tip on tipping, we suggest tipping a bit heavier on your first order. This will both put the server in a good mood and will make them more inclined to treat you well going forward. If the server goes out of their way, be sure to consider this in your tip. There are many very hard working servers who go above and beyond in the casino industry. Are there plenty of duds? Sure, but if you visit a high end casino, you will likely find that the servers on hand are more than earning their keep, both figuratively and literally.
Tipping Slot Machine and Hand Pay AttendantsThis is a tipping area that many do not know about. First, many casino patrons may not even play machine games that require a handpay (usually reserved for wins above $1,200, depending on the location you are in). In this case, tipping attendants is a non-concern.
If you play mid to high limit slots or video poker, or have gotten very lucky on an even smaller game, you have received a handpay. In this event, you will be paid out all of your winnings (but not the balance still in the machine) with actual cash. Some slot attendants will pay the last bit in $5s, $10s, and $20s. This is a not so subtle way of making a tip readily available to themselves.
As is the case with servers and dealers, try to let service quality determine whether a tip is deserved. Just because you win big doesn't mean you have to tip. If the slot attendant was timely, professional, and efficient, a tip may be in order. Cleopatra slot machine odds. Some players tip big, some don't tip at all on handpays, but ultimately the choice is up to you.
Related Posts:
 Jan 30 '18 at 17:09 
Tax Advice for Casino Players: W2-G Handpay Jackpots, Filing as a 'Pro' and MoreThe feeling of stress and anxiety that comes when filing taxes can be overwhelming for anyone, but especially for casino players that hit slot jackpots or enjoy other high stakes gaming.
Everyone has a different opinion about how to file, and there are very few resources available that give gamblers peace of mind. That's why I recently sat down with Ray Kondler of Kondler & Associates. Ray is a Certified Public Accountant based in Atlantic City and Las Vegas.
He's also one of the top national experts on gambling taxes.
While Ray works closely with the World Series of Poker, he also serves slot and table players in all 50 states. In our fascinating conversation, Ray gave us the insider's look at gambling taxes, keys for minimizing the chances of an audit, and tips for paying as little as possible… while staying within the bounds of the law, of course!
Here are the highlights from our great conversation. (You can also watch or listen to the full episode below.)

The First Thing Gamblers Should Know About TaxesOne of the most common questions new gamblers ask is, 'When do I have to report my winnings?' The answer actually varies depending on what you play.
Casinos will issue W-2Gs for winnings greater than $1,200 from a slot machine or $5,000 from poker. The moment you hit the jackpot, a casino staff member will bring the W-2G to you at the machine to get a signature (although new technology is emerging in high limit slot areas that lets players electronically sign the W-2G so they can get back to playing right away). The casino sends a copy of all W-2Gs to the IRS.
(Table game players don't face the same level of scrutiny. Casinos don't issue W-2Gs for table games like craps and blackjack.)
Did you know that the IRS matches up the W-2Gs the casino sends with your tax return?
This is extremely important! If you fail to file those winnings on your tax return, in most cases, the IRS will send a notice asking you to amend your return.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.
As Ray points out, this practice isn't limited to land-based casinos. Cruise lines also issue W-2Gs, and US Citizens are required to pay tax on gambling income earned worldwide — not just in the US.

The bottom line is, if you receive a W-2G, don't ignore it. The IRS sure won't..
Once gamblers know which winnings to report, the next question is usually, 'How do I minimize my tax bill?'

Filing as a Professional Gambler

When Ray sits down with a client, one of the first decisions they make is whether the player should register as a professional gambler.
Most slot players wouldn't even think of filing as a professional. (To be honest, I didn't even know that was an option before speaking with Ray). For slot players, especially retirees or those with limited other income, filing as a professional gambler comes with a unique set of advantages.
In most states, a normal casino player (aka amateur gambler) can only write off casino losses up to their total winnings. So, for example, if you have $100,000 in W-2G winnings, but lost $150,000 during the year, you can only write off $100,000 of losses when filing taes.
***Note: some states (Connecticut, Illinois, Indiana, Massachusetts, Michigan, West Virginia, and Wisconsin) do not allow amateur gamblers to deduct gambling losses from their winnings. The only way around this is to file as a professional and deduct losses as an 'expense of doing business' on a Schedule C.
On the other hand, a professional gambler can deduct other expenses associated with their casino play (it's a JOB after all - ha!). If they have $100,000 in W-2Gs, they can write off $100,000 in losses AND subscriptions to gambling resources, travel and meal expenses, home office expenses, and legal/professional fees. Professionals can then actually show a net loss on their Schedule C (Self-Employment) tax return and deduct it against their other income (like taxable Social Security income).
So who can qualify as a professional?
It turns out, qualifying as a pro isn't based on winnings. It's actually based on how much time someone spends gambling. Someone who plays slots five or six hours per day and has no other job could most likely file as a professional. This is especially useful for gambling retirees!
When advising retired clients, Ray recommends filing as a professional as soon as their Social Security income is taxable (over $40,000). This allows any below-the-line gambling losses to reduce taxable income.
Filing as a professional makes sense for many casino players, but there also are a few downsides to be aware of.
First, filing as a professional increases your chances of being audited.
Another downside is if you file as a professional and win a significant amount, you'll have to pay Social Security tax.
Depending on the amount of Social Security tax, it may be smarter to file as an amateur. This is something Ray and his team help their clients figure out. They'll complete the tax returns both as a professional and as an amateur. Then they will see which filing status makes the most sense for the client for that particular year.
It's also worth noting that filing as either a professional or amateur one year doesn't lock you in to that status for following years. For example, let's say you filed 2016 tax return as an amateur gambler. In 2017, you gambled the same amount of time, but due to an increase in winnings, it makes more sense to file as a professional. This is allowed by the IRS. You can decide which filing status is right for you on a year to year basis.

How to Protect Yourself From a Tax AuditWhile casual and moderate gamblers have a relatively low chance of being audited, the prospect of being audited is stressful for anyone. Ray says the most important thing you can do to protect yourself is to keep good records.
It might be a pain in the neck, but everyone should keep clear, detailed records — especially if you're filing as a professional.
Ray recommends using a dedicated credit/debit card to charge all gambling-related expenses. Then keep track of all gambling activity with a logbook.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.
Most of Ray's clients log their activity in a spreadsheet at the end of the week, but he has many clients that keep daily records. While there are several logging apps available to gamblers, they tend to be clunky or difficult to use. Some clients use old-fashioned pencil and paper, but Ray recommends keeping a spreadsheet.
The team at Kondler & Associates have even created several logbook spreadsheet templates they send to their clients to simplify the process.
Some gamblers think of keeping logbooks as an unnecessary step. Instead, they simply rely on the win-loss statements casinos send out to their loyalty club members. This can be effective, but any gambling done at other casinos (where they don't have a loyalty card), isn't reflected in those statements.
By keeping a logbook, you can ensure your losses at any casino (even those where you aren't a loyalty member) are accounted for in your taxes. This lowers your tax bill and protects you
Ray also points out that even if you failed to keep a good logbook in the past, you can go back and recreate it. In the event of an audit, the IRS can request ATM receipts to prove your records are accurate. But if you claim to have gambled with cash from a safe deposit box, no one can prove otherwise.
Another thing to consider for slot players is how to handle the tax liability from a 'group pull'jackpot (for those that don't know, this is where a group pools money and hits the high limit slots in search of JACKPOTS). Let's say you and four other players decide to throw equal money into a pot and hit the high-limit slot rooms. If the group hits the jackpot, only ONE person will sign the W-2G, meaning that person accepts all of the tax liability (even though they only took 20% of the winnings!).
The way to avoid getting stuck footing the entire tax bill is to document the payouts with 1099s. If you win a big jackpot in a group pull, make sure to gather the other players' full names, addresses, and Social Security numbers before handing out the money. Then issue a 1099 to each player for their share of the winnings.
If you do the extra step of issuing 1099s to the people in the winning group pull, then when you file your taxes, you can feel comfortable only claiming your 20% take of the jackpot on your tax return because you'll have a nice paper trail to show the IRS if they come sniffing around.

Comps and the IRSWhen casinos issue comps, gamblers can potentially receive incentives worth thousands upon thousands of dollars. So, how does the IRS tax these comps?
The short answer is they don't tax comps.
In over 30 years of working as a CPA, Ray has never seen a 1099 issued for comps. This would be a record-keeping nightmare for casinos if they had to document every meal or lodging comp for tax purposes.

Most players only tip when they are having an outright winning session. The second most common time to tip is after an individual big win, regardless of your overall session results. As a whole, it is rare to see players tip when they are losing, and exceedingly rare when they are down big. With that said, some losing players will forfeit their last few dollars and instead toss them to the dealer. At a certain point there is little chance of coming back, so these players figure it is better to show some good karma towards their next session.
How Much and When to Tip Casino DealersThe amount that you tip, of course, is relative to how large of stakes you are playing. With that said, you should use day to day economics to be reasonable. For example, if you are playing $25 per hand blackjack and win $500 on the session, a $10 tip would be logical. In fact, many wouldn't even tip in this situation. If you are playing $1,000 per hand and win $5,000, $10 or $25 would still be acceptable. You would not increase the tip tenfold because the win was tenfold. As a general rule, consider the work volume, the quality of the dealer, and then look at the amount won. $5,000 won on $1,000 wagers is only 5 bets, while $500 won on $25 is 20 bets. Everything is relative. If you won $5,000 on much smaller bets, then yes, bumping up the amount is reasonable. 
In games where there is less likely to be big walk away wins like blackjack, you may find tipping on a 'per win' instance to be better. Roulette or Pai Gow (when playing the bonus) are best for this. If you hit a number in Roulette or a big bonus side bet in Pai Gow, you will likely have seen your biggest win on the session. Share the rush of excitement with a tip for the dealer. Let's be honest, it's tough to walk away from roulette with a big win, but you will have some here and there, so share the wealth when you can. League of legends gambling. If you are having a tough day and a few inside hits don't really chip away at your losses, you shouldn't feel guilty for skipping the tip.
In real life, most players will toss a few singles or redbirds ($5 chips) here and there throughout a session. This is a way to keep dealers happy, you happy, and the game rolling. Even a few dollars is appreciated, and it will likely bump your experience quality as well.
Winning (or losing) should not always be the main reason why you tip. No dealer can actually control outcomes, so you should pay most attention to their level of skill. If dealers are personable, go out of their way to help you, and are efficient at their task, they deserve a tip. If a dealer is rude to you or performs poorly (unless you know they are new, in which case, toss them a few dollars for encouragement), there is not much reason to tip. Don't go out of your way to reward bad behavior, but take care of those who are putting in effort to take care of you.
Tipping Poker DealersTipping a poker dealer is different than when you do the same for table games. Usually, believe it or not, dealers make more at lower stakes than they do in higher limit games. The higher percentage of amateur players, the more they are willing to tip the dealer.
Many regular, or professional poker players tip around $1 per pot that they win (assuming a flop is seen). Others will tip $1-$2 for anything they qualify as a large enough pot. Others still will tip, $5, $10, or even $25+ when they win a bigger pot. Tipping in poker varies wildly, but if you tip a few dollars for any moderately sized pot or larger, you will be falling into the average.
Playing for the DealerInstead of tipping the dealer outright, you can also play for the dealer. This means that you will place a wager that will go to the dealer's pool in the event of a win. This is common in table games. To place a bet for the dealer in blackjack, place your own wager, and then place the dealer's wager right next to it, half way on the betting circle. You can even announce 'for the dealer.'
If you bet $5 for the dealer and win, they will have a net of $10. In some casinos the dealer will collect the $10 themselves, in others you will need to toss it to them. It is common courtesy and etiquette for players to double a dealer's bet in the event of a double down or split, though it is not necessary. Playing for the dealer is a fun way to have everyone involved in the action for the tip itself.
Tipping Casino ServersTipping a server in a casino is very similar to tipping a bartender. The most commonly accepted barometer for casino waitress tips is about $1 per drink. The servers are not usually making the drinks themselves, but instead putting in the orders and then completing the delivery. Their job is to fill up a tray as much as possible and deliver ordered drinks in the most timely and efficient manner possible. 
If your waiter brings your drink, as ordered, back to you within a few minutes, they have done their job. In a bar, you may tip more for mixed drinks than a simple beer, but for a waitress, unless they are chopping tips, these drinks require roughly the same amount of work. Of course, if you are giving more complicated instructions, or the server is going out of their way to bring you a stronger or generally higher grade drink, you should consider tipping a few dollars extra.
For a tip on tipping, we suggest tipping a bit heavier on your first order. This will both put the server in a good mood and will make them more inclined to treat you well going forward. If the server goes out of their way, be sure to consider this in your tip. There are many very hard working servers who go above and beyond in the casino industry. Are there plenty of duds? Sure, but if you visit a high end casino, you will likely find that the servers on hand are more than earning their keep, both figuratively and literally.
Tipping Slot Machine and Hand Pay AttendantsThis is a tipping area that many do not know about. First, many casino patrons may not even play machine games that require a handpay (usually reserved for wins above $1,200, depending on the location you are in). In this case, tipping attendants is a non-concern.
If you play mid to high limit slots or video poker, or have gotten very lucky on an even smaller game, you have received a handpay. In this event, you will be paid out all of your winnings (but not the balance still in the machine) with actual cash. Some slot attendants will pay the last bit in $5s, $10s, and $20s. This is a not so subtle way of making a tip readily available to themselves.
As is the case with servers and dealers, try to let service quality determine whether a tip is deserved. Just because you win big doesn't mean you have to tip. If the slot attendant was timely, professional, and efficient, a tip may be in order. Cleopatra slot machine odds. Some players tip big, some don't tip at all on handpays, but ultimately the choice is up to you.
Related Posts:
 Jan 30 '18 at 17:09 
Tax Advice for Casino Players: W2-G Handpay Jackpots, Filing as a 'Pro' and MoreThe feeling of stress and anxiety that comes when filing taxes can be overwhelming for anyone, but especially for casino players that hit slot jackpots or enjoy other high stakes gaming.
Everyone has a different opinion about how to file, and there are very few resources available that give gamblers peace of mind. That's why I recently sat down with Ray Kondler of Kondler & Associates. Ray is a Certified Public Accountant based in Atlantic City and Las Vegas.
He's also one of the top national experts on gambling taxes.
While Ray works closely with the World Series of Poker, he also serves slot and table players in all 50 states. In our fascinating conversation, Ray gave us the insider's look at gambling taxes, keys for minimizing the chances of an audit, and tips for paying as little as possible… while staying within the bounds of the law, of course!
Here are the highlights from our great conversation. (You can also watch or listen to the full episode below.)

The First Thing Gamblers Should Know About TaxesOne of the most common questions new gamblers ask is, 'When do I have to report my winnings?' The answer actually varies depending on what you play.
Casinos will issue W-2Gs for winnings greater than $1,200 from a slot machine or $5,000 from poker. The moment you hit the jackpot, a casino staff member will bring the W-2G to you at the machine to get a signature (although new technology is emerging in high limit slot areas that lets players electronically sign the W-2G so they can get back to playing right away). The casino sends a copy of all W-2Gs to the IRS.
(Table game players don't face the same level of scrutiny. Casinos don't issue W-2Gs for table games like craps and blackjack.)
Did you know that the IRS matches up the W-2Gs the casino sends with your tax return?
This is extremely important! If you fail to file those winnings on your tax return, in most cases, the IRS will send a notice asking you to amend your return.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.
As Ray points out, this practice isn't limited to land-based casinos. Cruise lines also issue W-2Gs, and US Citizens are required to pay tax on gambling income earned worldwide — not just in the US.
The bottom line is, if you receive a W-2G, don't ignore it. The IRS sure won't..
Once gamblers know which winnings to report, the next question is usually, 'How do I minimize my tax bill?'

Filing as a Professional GamblerWhen Ray sits down with a client, one of the first decisions they make is whether the player should register as a professional gambler.
Most slot players wouldn't even think of filing as a professional. (To be honest, I didn't even know that was an option before speaking with Ray). For slot players, especially retirees or those with limited other income, filing as a professional gambler comes with a unique set of advantages.
In most states, a normal casino player (aka amateur gambler) can only write off casino losses up to their total winnings. So, for example, if you have $100,000 in W-2G winnings, but lost $150,000 during the year, you can only write off $100,000 of losses when filing taes.
***Note: some states (Connecticut, Illinois, Indiana, Massachusetts, Michigan, West Virginia, and Wisconsin) do not allow amateur gamblers to deduct gambling losses from their winnings. The only way around this is to file as a professional and deduct losses as an 'expense of doing business' on a Schedule C.
On the other hand, a professional gambler can deduct other expenses associated with their casino play (it's a JOB after all - ha!). If they have $100,000 in W-2Gs, they can write off $100,000 in losses AND subscriptions to gambling resources, travel and meal expenses, home office expenses, and legal/professional fees. Professionals can then actually show a net loss on their Schedule C (Self-Employment) tax return and deduct it against their other income (like taxable Social Security income).
So who can qualify as a professional?
It turns out, qualifying as a pro isn't based on winnings. It's actually based on how much time someone spends gambling. Someone who plays slots five or six hours per day and has no other job could most likely file as a professional. This is especially useful for gambling retirees!
When advising retired clients, Ray recommends filing as a professional as soon as their Social Security income is taxable (over $40,000). This allows any below-the-line gambling losses to reduce taxable income.
Filing as a professional makes sense for many casino players, but there also are a few downsides to be aware of.
First, filing as a professional increases your chances of being audited.
Another downside is if you file as a professional and win a significant amount, you'll have to pay Social Security tax.
Depending on the amount of Social Security tax, it may be smarter to file as an amateur. This is something Ray and his team help their clients figure out. They'll complete the tax returns both as a professional and as an amateur. Then they will see which filing status makes the most sense for the client for that particular year.
It's also worth noting that filing as either a professional or amateur one year doesn't lock you in to that status for following years. For example, let's say you filed 2016 tax return as an amateur gambler. In 2017, you gambled the same amount of time, but due to an increase in winnings, it makes more sense to file as a professional. This is allowed by the IRS. You can decide which filing status is right for you on a year to year basis.

How to Protect Yourself From a Tax AuditWhile casual and moderate gamblers have a relatively low chance of being audited, the prospect of being audited is stressful for anyone. Ray says the most important thing you can do to protect yourself is to keep good records.
It might be a pain in the neck, but everyone should keep clear, detailed records — especially if you're filing as a professional.
Ray recommends using a dedicated credit/debit card to charge all gambling-related expenses. Then keep track of all gambling activity with a logbook.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.
Most of Ray's clients log their activity in a spreadsheet at the end of the week, but he has many clients that keep daily records. While there are several logging apps available to gamblers, they tend to be clunky or difficult to use. Some clients use old-fashioned pencil and paper, but Ray recommends keeping a spreadsheet.
The team at Kondler & Associates have even created several logbook spreadsheet templates they send to their clients to simplify the process.
Some gamblers think of keeping logbooks as an unnecessary step. Instead, they simply rely on the win-loss statements casinos send out to their loyalty club members. This can be effective, but any gambling done at other casinos (where they don't have a loyalty card), isn't reflected in those statements.
By keeping a logbook, you can ensure your losses at any casino (even those where you aren't a loyalty member) are accounted for in your taxes. This lowers your tax bill and protects you
Ray also points out that even if you failed to keep a good logbook in the past, you can go back and recreate it. In the event of an audit, the IRS can request ATM receipts to prove your records are accurate. But if you claim to have gambled with cash from a safe deposit box, no one can prove otherwise.
Another thing to consider for slot players is how to handle the tax liability from a 'group pull'jackpot (for those that don't know, this is where a group pools money and hits the high limit slots in search of JACKPOTS). Let's say you and four other players decide to throw equal money into a pot and hit the high-limit slot rooms. If the group hits the jackpot, only ONE person will sign the W-2G, meaning that person accepts all of the tax liability (even though they only took 20% of the winnings!).
The way to avoid getting stuck footing the entire tax bill is to document the payouts with 1099s. If you win a big jackpot in a group pull, make sure to gather the other players' full names, addresses, and Social Security numbers before handing out the money. Then issue a 1099 to each player for their share of the winnings.
If you do the extra step of issuing 1099s to the people in the winning group pull, then when you file your taxes, you can feel comfortable only claiming your 20% take of the jackpot on your tax return because you'll have a nice paper trail to show the IRS if they come sniffing around.

Comps and the IRSWhen casinos issue comps, gamblers can potentially receive incentives worth thousands upon thousands of dollars. So, how does the IRS tax these comps?
The short answer is they don't tax comps.
In over 30 years of working as a CPA, Ray has never seen a 1099 issued for comps. This would be a record-keeping nightmare for casinos if they had to document every meal or lodging comp for tax purposes.
He has seen 1099s issued for prizes though. For example, if there's a drawing and you win $2000, you'll receive a 1099 for 'other income'. This is also true for prize winnings like free cars or other expensive merchandise. While it's different from a W-2G, it's still required to report on your taxes, but these are extraordinary circumstances.
Regarding normal comps, there's no need to report them as income.
Professional Help for Gambling TaxesWhether you're a slot player, table gamer, or poker player, there's a good chance you'd rather spend your time playing than worrying about taxes.
There are a lot of extremely talented CPAs all around the country, but many don't have a clue how to minimize tax winnings because they rarely see it. Ray's team works on minimizing tax exposure from gambling winnings all day every day
So, if you have any questions about gambling taxes, feel free to reach out to Kondler & Associates HERE. They never charge for calls or emails, and they're extremely quick to reply. They're an incredibly valuable resource, so don't hesitate to reach out. For more on Ray and his firm Kondler & Associates, visit KondlerCPA.com.
Want to protect yourself from an audit? Download our FREE Casino Player's Logbook to start keeping better records of your gambling activity.
Tipping Handpays 2 Comments 
 FEB 3 '18 
 I'd like to add a little color to this article by pointing out a few changes that will go into effect for the 2018 tax year as a result of the new tax bill. Professional gamblers used to be able to deduct expenses as well as offset winnings with losses. The new way, their deduction is capped at the amount of winnings. More significantly, for mid-rollers like myself (I do $4,000 - $5,000 a day coin on slots over about 28 days a year in Vegas; some years I have no handpays and some years I have a few) - while it is true that winnings can still be offset with losses if you itemize, because of the increase in the standard deduction as well as the elimination of the personal exemption(s) and capping of property/state tax deduction at $10,000, the threshold for itemizing has basically been doubled. Whereas in the past, I have always been able to totally offset W-2G winnings with losses, with the new law and my current level of still allowed itemizable deductions (mortgage interest and property/state income tax) I would now have to have at least $12,000 in W-2Gs to be able to itemize, and even then, I would still end up paying Fed taxes on that first $12,000. Finally, with respect to group pulls - I've organized several and I have always been lucky to have a UK resident participating who is not subject to taxes OR withholding. Under the new tax law, I will not do one unless that condition is present. I'm not saying you shouldn't do one, they're a lot of fun, but if you do, make sure you consider the tax implications and discuss how you are going to handle a handpay with the participants ahead of the event. Hitting a big win and then determining that 12% or 22% or more is going to have to come off the top is not going to be a welcome surprise to the group. 
Tipping How Much To Tip FEB 6 '18 