TaxBet — Session-Method Workpaper

Your client

Tax Year 2026 New Jersey 4 platforms Generated November 1, 2026

Session method applied

Preparer review pending

Amendment may be indicated — preparer decides

Filing Numbers — Federal Form 1040 · Schedule 1 · Schedule A

Outcome comparison — naive vs session · standard vs itemized

W-2G Reconciliation

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Session Log — by platform

Documented session methodology

This document was prepared by TaxBet (taxbet.io) using TaxBet's documented session methodology, informed by the cited authorities and configured assumptions (Chief Counsel Advice AM 2008-011; Notice 2015-21, a proposed safe harbor; Shollenberger v. Commissioner; Park v. Commissioner). Transaction data is sourced directly from supported gambling platform exports. The 90% loss deduction limitation (tax years beginning 2026) has been applied where applicable. Client filing-software entry notes are included in the client report. This workpaper is provided for tax preparation purposes. The CPA or EA of record is responsible for verifying figures and determining filing treatment. Not tax advice.

Methodology and assumptions — expand for the full statement (included in the printed and downloaded workpaper)

Methodology. Under IRS guidance and case law (Chief Counsel Advice AM 2008-011; Notice 2015-21, a proposed safe harbor; Shollenberger v. Commissioner; Park v. Commissioner), a casual gambler's income may be measured by session rather than by adding up Forms W-2G. TaxBet documents that computation for you and your tax professional to review. Session convention: at minimum one platform, one calendar day — and separated by game type where the authorities distinguish them (slots vs. table vs. sports). TaxBet computes both views; the default is set with professional review. The configured default here is establishment × calendar day, with the per-game-type grain available where the preparer elects it. Day boundaries currently follow the export's timestamped day; alignment to the wager-location time zone (Notice 2015-21) is implemented and pending preparer validation of the re-derived figures. Computation basis: bet-level cash primitives — payout less stake; operator summary columns are not relied upon. Free-play and promotional wagers are treated as zero amount wagered per Notice 2015-21 (preparer-confirmed); operator summary columns appear to count promotional wagers at face value — the tax framework counts them at zero. Refunded and voided wagers are reconciled to the underlying records, not treated as separate income or loss items (preparer-confirmed). Jackpot pool contributions are not treated as income; actual amounts paid per casino records govern (preparer-confirmed; validated against the export's own running-balance ledger). Loss limitation: gambling losses are deductible on Schedule A up to winnings; the 90% limitation applies to tax years beginning after 12/31/2025. Loss-limitation ordering for tax years 2026+ follows the statutory text (90% of losses, then limited to winnings); an alternative ordering appears in some published guidance — position under professional review. W-2G figures shown are estimated W-2G exposure (from transaction data) unless actual forms are supplied — actual forms, when present, are the authoritative reconciliation target. Sports and multi-day-settlement wagers are grouped by settlement date per platform — a stated methodology position; formal session-method guidance addresses casino play.

Preparer review: ____________________ Date: ______________