"You need to have a running log of ALL of your gambling activity for the year, and report ALL your wins."
If joyceepoo is a professional gambler, they should already know that. But for the average player that gets a W2-G for winning over $600, they can deduct up to that amount by going long form using schedule A.
If the IRS enforce their rules "Gambling winnings are always taxable income" every player cashing a Free Ticket or more would be required to file IRS Form 1040 regardless of income and have to report the winnings on line 21.
"The full amount of your gambling winnings for the year must be reported on line 21 of IRS Form 1040. You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form."
Does this mean if win a Free ticket I must report it as earnings and then deduct the cost of the ticket (and losing my standard deductions) using schedule A?
"To deduct your losses, you must be able to porvide receipts, tickets, statements, or other records that show the amount of both you winnings and losses."
But my Free ticket is the proof of my losses and I must cash it to get my winnings. Now what?
I can use a scanner to cash scratch-off and/or online game winning tickets and get credits to buy other tickets without signing the back of the ticket. And I can even hand an unsigned ticket to a clerk valued under $601 and get paid the winning. Never been asked for my name by an automated machine cashing a slot machine ticket or a race track casher.
Now if all casual gamblers, including at casinos, race tracks, bingo halls, and of course the lottery had to report even the smallest win amount, why doesn't the IRS require casino and race track cashiers, bingo hall operators and lottery sales clerks to get names (including two forms of ID) and SS number of every winner of anything (regardless of what the player spent)?
Why does the IRS allow casinos and lottery sale agents to have automated machines to cash small amount tickets ($600 for the lottery and $1199 for slot machines) if in fact they require us to report any and all winnings?