So I am about to file my 2020 taxes and have been trying to research/read on how to report blackjack winnings. I know for a fact that you are required to report all winnings and are able to deduct losses up to the amount of winnings. That makes sense to me. My question is more about how we are supposed to file with the new online casinos and much more accurate reporting that comes with that.
To easily explain my question I have an example.
Say I deposit $1,000 into my account and play 200 $100 blackjack hands. For this example let’s just say each hand is alternating win/loss. At the end of the 200 hands played, I’d have won 100 hands and lost 100 hands. Total stakes would have been $20,000, and total winnings would have been $10,000. Net winnings would be $0 and I’d still be sitting with $1,000 in my account. It wouldn’t be hard to play 200 hands of blackjack on some of these sites in an hour or 2.
My question is am I actually required to report $10,000 of income and then $10,000 of losses? If I sat at an in person casino blackjack table and played out this exact same scenario, I would walk away from the casino knowing that I lost nothing and gained nothing. I wouldn’t be thinking that I have income to report. People don’t sit at a table in person and keep track of every single hand. With the new online sportsbooks/casinos, it’s easy to track these “per hand” totals and the win/loss statements at year end are going to be relatively accurate. Is every single hand you win considered earned income? Seems like that’s a crazy overstatement of income especially since there’s so much winning a losing involved in blackjack.
Any insight or advice helps. If I can’t figure anything out I’ll probably end up just erring on the side of caution reporting everything that my win/loss statement shows- which is a lot and that sucks tbh.