You apply the amounts on Total Rewards Win/Loss statements to your 1040 tax form; if you have won money, you treat it as other income, and if you have lost money, you can deduct it from your taxes. These statements provide documentation of how much you won or lost.
If you win $1,200 or more at bingo or slot machines, $1,500 or more at Keno, more than $5,000 at a poker tournament or $600 or more from other casino games, you must report the winnings as income on your income tax return. You might also receive a Form W-2G from a gambling establishment. However, if you itemize deductions, you can deduct your gambling losses to reduce the amount of income tax you might owe on your winnings. Gambling losses are not subject to the 2 percent limit, but the amount you deduct cannot exceed the amount you report as income. Nonresident aliens are not eligible to deduct gambling losses. As with all deductions you take on your income taxes, you must be able to prove you lost the money by providing receipts, tickets, statements or other documentation that shows the amount you won and the amount you lost. The Total Rewards Win/Loss statement provides you with the casinos' estimate of how much you won or lost. You can use the information on the statement to file your income taxes at the end of the year and to justify your deductions if you are audited by the IRS.