Go figure

[IRonMaN]

So I have a client that loves the casino.  For years she has brought in mittfuls of W-2Gs for her skills at operating a slot machine.  She evidently takes a rest break from the slot machines from time to time by playing bingo which is indicated by the 1099 she receives with bingo winnings.  So I get the W-2G totals loaded in and plop in the winnings from bingo on the 1099 that has been floating around in her file for years and load in her gambling losses and I'm ready to move on to the next return.  She comes in, signs the 8879, I transmit the return and I'm just about ready to scratch another return off the list.  Then that dreaded thumbs down shows up.  Some dribble about gambling losses.  But, but, but they don't exceed winnings ---------- the software already knows that, how come the IRS doesn't know that?  So I'm scratching my head on what the heck happened.  So what if I get rid of the 1099 amount and enter it as "other amounts that weren't reported on a 1099".  Surely it can't work, since I see the W-2G, 1099 and "other" amounts all roll into one total as gambling winnings.  But Mother Theresa must have been riding shotgun on the transmittal and the return clears.  Thanks Mother Theresa for another miracle.  At least I'm thinking I witnessed a miracle, why else would that stupid little change allow the return to clear?

[The-Tax-Lady]

When you say the "the 1099 that has been floating around in her file for years" it was a 2021 1099 that went in the return, right?

[joshuabarksatlcs]

@IRonMaN   I'm so proud that you could write beyond 5 lines.  It didn't put me to zzzzz, but I fast forwarded, just to see you had the resolution.  So I didn't need to dissect it and do a thesis.  Whew!!

[BobKamman]

In the name of Mother Teresa, I request that you get the H out of there

[joshuabarksatlcs]

RE: In the name of Mother Teresa, I request that you get the H out of there

Who is the "you" - Iron, Tax lady or me?

If one gets the H out of there, it'd become tere.  Your request makes as much sense as half of your posts.  but then @IRonMaN  could give you a more precise percentage.

Just saying.

[dkh]

Wonder if you'd deleted the 1099 info that carried forward and reentered if it would have been approved...

[IRonMaN]

@The-Tax-Lady  - The 1099 info has been in the system for years and I loaded in the 2021 dollar amount -------- the anvils aren't that bad ........... yet, that I have been entering the same 1099 information and amounts since 1972.

@BobKamman - I'm not Catholic and I spelled it the way it should be spelled.  I'm not sure why she spelled it wrong for so many years.

@joshuabarksatlcs - I had to take a couple of naps in between writing to get that many lines, but I got it done.  Another miracle from Mother T.

[IRonMaN]

@dkh - that would have been a lot more work than the route I took.😁

[garman22]

Hahahha!!! 😂🤣

[BobKamman]

She was born Anjezë Gonxhe Bojaxhiu.  That first name is pronounced "i-urn-man"  in Albanian, so she chose an easier one with sensible spelling.  

[IRonMaN]

Obviously the spelling wasn't sensible to me.  I have an aunt Theresa so that is the first spelling that popped into my head.  If she wanted sensible she should have gone with Amy, or Eve or something easy like those.

[joshuabarksatlcs]

You always use the highest title to show respect.  You don't address the man "Mr. Patton", but "General Patton". 

It's Saint Teresa.  I was surprised Bob didn't correct you on this, instead of just sharing the details of her birth name.   

Anyway, a word to the wise, @IRonMaN , you don't argue with a Nobel Laureate (by this, I don't mean Bob) or a Saint.   Live and Learn.  She is Saint Teresa.   To the world.  Not just Catholics.

Just saying.

[IRonMaN]

I wasn't addressing either of them since I don't know what their current address is.  But thanks for the info.

[BobKamman]

She might be known differently in Heaven but on the Internet her domain name hasn't changed

https://motherteresafoundation.org/

[IRonMaN]

I don't think her foundation created my miracle.  But then again, maybe it was Saint Bob.  What kind of batting average do you have in performing miracles Bob?

[BobKamman]

@IRonMaN   I have brought my 90-year-old client back to life twice.  She keeps getting notices from IRS that her SSN belongs to someone who died.  It tells her to contact Social Security (not an easy task these days).  They tell her to go back to IRS.  Taxpayer Advocate ignores us because, well, they're useless.  She didn't get the $600 EIP, but so far hasn't received a bill after claiming it on her 2020 return.  Nor did she receive the $1,400 EIP, we'll see how that works out.  I make sure she doesn't make ES payments because it's easier to wait for a bill than for a refund.  

[IRonMaN]

That makes it official - Saint Bob it is.  Now that the word is out, you will probably be getting a lot of 8915F people praying to you.  Please see what you can do for them.

[rbynaker]

Gambling winnings are reported on W-2g, not a 1099-MISC.  From the W-2g instructions "File Form W-2G for every person to whom you pay $1,200 or more in gambling winnings from bingo or slot machines".

Whatever was reported on the 1099 was something else.  Or it's just as likely the issuer is using the 1099 to skirt some other state or local ordinance preventing gambling but allowing bingo "prizes".  That's why (right or wrong) the IRS does not recognize it as gambling winnings.

For some reason betting $50 on a hand of blackjack is gambling but betting $50 on Bitcoin is "investing".

[IRonMaN]

The 1099 and W-2Gs were from the same casino, so I'm not sure why the proceeds are reported differently.  Maybe the person generating the forms is related to the person that is in charge of interpreting IRS and state rules for Intuit that come up with some of those "because" things here that we all scratch our head over.

[joshuabarksatlcs]

RE: The 1099 and W-2Gs were from the same casino, so I'm not sure why the proceeds are reported differently

@IRonMaN you have to loosen up and hit Jersey City or the Native American Land every now and then. 

Very possible but not conclusive answer: (Conclusive if given by Bob)

Casino 1099's could be related to promotional programs.  Cumulative jackpots (not from slots).  Poker hand incentives (quads beaten by straight flush), hitting X cards in blackjack without busting, hitting two royal flushes in a row in some table games, winning from quarterly drawings whereby you get a free ticket that goes to a big drum when you hit a black jack, things like that.  Every day, the casino add to the jackpot until no one hits it.  Once at at poker room, the "bad-beat" jackpot was over $100K...  I once beat Quad kings with a straight flush at Lake Tahoe, but the Jackpot was only for $3,000....  It would have been a  five figure amount in most card rooms.  Lake Tahoe poker business is very slow.  Do you want to see a picture of that hand? 

[IRonMaN]

But if I started spending my spare time in a casino, that would take time out of my busy schedule of getting rich off of crypto currency - two dollars at a time.