I recently won $4,000 on a slot machine. When I won I was presented with a W-2 earnings statement to claim on this years taxes. I already know that you must report the winnings to the IRS, but I can also claim the losses.

I KNOW for a fact that I have spent more that the $4,000 on playing slots and scratch-offs, but I never get receipts when I purchase the scratch-offs or do I use those player cards most casinos try to get people to use. The vending machines (located in most grocery stores) do not give receipts.

I do however keep my ATM withdrawal Receipts from the casinos I play at each time I go.

My question is 1. Can I use my receipts as "proof" of my past losses? 2. Could I create a daily journal or spreadsheet to indicate the amount(s), date(s), and location(s) of my scratch-off purchases be acceptable to show the IRS if I were to ever get audited?

Thanks, Dale

Yes, do both the things:
1. ATM withdrawal receipts, and
2. spreadsheet.

However, you can deduct losses only up to gambling winnings. Also losses are itemized deduction. Read Your U.S. Tax Return: The U.S. Income Tax Topics 1

While the ATM receipts are a start, they are NOT prima facie proof that you actually gambled with the money. It is, however, better than nothing.

In fact, the IRS looks at the actual scratchoff tickets themselves with a jaded eye, as the average person can retrieve those from the trash can outside of the convenience story.

A daily log in a daytimer is MUCH better than the spreadsheet, because analysis of the ink can show that the entries were made at about the time noted in the daytimer.

USE the player cards that the casinos give you. They provide a detailed record of what was lost and won, and that record is available for the asking.