IRS issues

[tkong]

I know that when you play slots and win over 1200.00 you generaly get hand payed and then they hand you a IRS form and they report it to the IRS. But if you are playing the tables and win big, say 2000.00 from playing BJ, Poker or Craps when you cash in the chips do they also give you the form to fill out also? Any help is appreciated.
Thanks

[Steve]

Here is a tip:
If you win more than $1200 TOTAL from a slot and get a hand payout or to be politically correct, turn in a voucher, you need to mention that the winnings were a combined total of all your slot winnings.

EX:
Eileen and I won over $1700 playing the $5.00 Wheel of Fortunes slots, but we never hit for more than $1200 at any given time, this was our total winning amount and was not taxable. Now if we hit a single payoff that was over $1200 like we did when we won $4000 on the Ten Times Pay slots at Harrah's, then we did have to fill out an I.R.S. form.

Steve

[Mr.C]

If you won over $1,200.00 at BJ or any other table game, it would be very difficult for any one to know how much you started with in the first place. Make two or three trips to the gage ,if you have won big. Mr C

[sonntex]

Since I have never won big at a table, I don't know, but I thought you had to have a bigger win at the table before they came around with the IRS stuff. Or maybe it is $1200 or more on one hand. Maybe winnings accumulate here just like at the slots. Anybody know?

[smmoo]

This is a quote from the IRS website

"Generally, if you receive $600 ($1,200 from bingo and slot machines and $1,500 from keno) or more in gambling winnings and your winnings are at least 300 times the amount of the wager, the payer is required to issue you a Form W-2G. If you have won more than $5,000, the payer may be required to withhold 25 percent of the proceeds for Federal income tax. However, if you did not provide your Social Security number to the payer, the amount withheld will be 28 percent."

I have worked for the last five tax seasons for a local accountant, so can answer most tax- gambling winnings questions or ask the CPA I work for. If I don't know the answer, he will. :rolleyes:

[wildpitcher]

I've never had $1200 in front of me at one time at any gaming table, so I cannot help you with the taxes......

But I agree with an earlier posting. They'd never know how much you made if you cash out in multiple transactions

Dave

[tkong]

Thanks for the tips. One person can win that much. I almost did playing craps. I was at the craps table for 3 hours. Winning alot here and there. I just gave some to my wife and I had some to cash in. I did not want any hassles. :D

[kestral]

EX:
Eileen and I won over $1700 plaing the $5.00 Wheel of Fortunes slots, but we never hit for more than $1200 at any given time, this was our total winning amount and was not taxable.

Steve

I can't believe I'm going to correct Steve.

Any amount you win is taxable. If you win $20, technically you are supposed to report it to the IRS as income when you file your taxes. It's just on a single win of $1200 or higher that the Payee (the casino) is REQUIRED to report the win to the IRS, so you know that They know, and you have to pay the tax.

So of course who reports those lower win amounts? Or those combined win accounts? Hope the IRS does not change that part of the system.

Sorry Steve - but I am sure that is what you meant to say. Right? (Please don't kick me off the board! )
:eek:

[Princess28]

I once saw a gal playing a quarter triple play vp and was delt a royal flush on the first hand which gives her 3 royals. The pay out was 1100. for each royal. Did she have to claim the 3300 winnings since that was 3 seperate bets?

[CeeJayRocker]

. . . . that gambling winnings may be offset at tax time by gambling LOSSES. Play the lottery every week (which most of you probably do) and keep your losing tickets (which most of you probably don't), and keep a personal record of other money lost at a casino, and I'm betting you'll come out ahead at tax time . . . After all, they didn't put crystal in the chandelier and waves at the pool based on their losses from all you winners . . . . ;)

[smmoo]

Of course CeeJayRocker is right abouting deducting losses-BUT only if you itemize deductions. Here's the quote from the IRS

"You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A (PDF), line 27. However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information."

That's the short version. With slot machines the IRS likes to see -Dates, times, denominations, machine numbers etc. Of course you only need to produce these records if you are audited. So how much of a gambler are you really :p

[Steve]

I can't believe I'm going to correct Steve.
(Please don't kick me off the board! )
:eek:

I won't kick you off this time! LOL :D
Thanks for the clarification.

Also, as it was recommended is keeping a log book on winnings and loses especially if you do hit something that is taxable. You can also request an IRS form from the casino as they do keep track of all that good stuff via your Players Card.

Steve

[sonntex]

Most casinos give you a receipt at the time they pay the jackpot, and a few days later you get your W2G in the mail. Some wait 'til the end of the year to mail it. At the end of the year you can request a statement from them; some make it available on their website.

To keep track of wins/losses we keep all statements of ATM's we might use (not often) and bank statements showing checks we wrote for the trip. ATM receipts have the site of the withdrawal printed on them, as well as the date; if we cash a large check at the bank for our bankroll, we always do it the day before or the day we leave. That way we have dates to back up our deductions. We keep hotel receipts to show that we were in L/V or wherever we take a gambling junket. Car rental and travelers check receipts should be kept,too. Always keep something to verify when you went and how much money you took. Seems like a lot of record keeping, but if you win big you don't want to get caught with no proof of what you deduct on your tax return. Depending on what you win and your tax bracket, you could end up owing a whopper of a tax bill.

I keep all my lottery scratch-offs and lottery tickets, as well.

But then, we are accountants and record keeping is second nature to us.

Smmoo is right. Read Publication 529.

[tkong]

So if I want to deduct my losses against my wininggs, could I aslo use my bingo anf keno tickets as proof? or do es the IRS needs proof that I was playing?

[sonntex]

Please be advised, I am not a tax accountant. I am not a CPA. I am a degreed commercial accountant with about 4o years experience. I only know what I have experience with. If you have issues with your taxes, see a tax Pro.

However, the following is how I do it and I have never been audited. One year we had $22,400 in W2G's, but we only paid tax on $14,000.

Unless the casino issues a W2G for winnings, you don't need to report anything to the IRS. But if you win and you want to use bingo, keno, slot, whatever, that you can to verify what you used on that particular junket, then keep them. We have always just used our checks, travelers checks, atm receipts, car rental receipts, credit card bills, hotel bills, etc. to show that we used a certain amount of money for the trip. If we get a W2G then what we spent can be deducted from what we won. If no W2G, then no need to worry about it.

Actually, I keep a running tab on what we use all year for gambling (including lottery tickets), then add up what we used for the year and subtract it from what we get W2G's on, and report that to IRS. Unless you win a huge amount, like hundreds of thousands of dollars, IRS probably won't audit you if your tax return indicates that you won some but lost the same amount, thus zeroing out what you won. (They also have a tendency to look at what you have reported in prior years. If what you report is in line with what you have reported before, they most likely will accept it.)

For example, you win a $3000 jackpot on slots and you get a W2G for it, when you report your taxes on April 15, showing a $3000 loss to offset the win would seem logical to IRS, therefore, you would owe no tax on the winnings. But, you MUST report the winnings if you get a W2G, then show the deductions under the itemized deduction portion of your return. If you do not itemize deductions (instead you take the standard deduction), then you are stuck. You will have to pay tax on the winnings.See IRS Publication 529.

Just remember, no W2G, no reporting necessary. Small wins can be accumulated, and no W2G will be issued, therefore, no tax.

Some may think this is unethical or even tax evasion, but that's the way it works. So Happy Small Winnings Hope you accumulate thousands.

P.S. Knowing the IRS, they will probably find a way to make us report it all someday. They could come with a new form number (1099-G?) and make the casinos report to them what your net winnings are for their casino. If they do, then it's a whole new ballgame. Until that happens, KEEP THOSE RECORDS.

[frienddelilah]

I have cashed out for over $1000 several times from craps. I have never had to fill out any IRS forms.
One time at IP the cage asked what I was playing and called the pit boss. at least I think thats who they called. They talked in the phone for about a minute and then paid me.

I believe you can cash out for as much as you want from table games and not have to report to IRS. I think the rule is you have to win 600 times the amount of your wager before you receive a W2G. Since their are no 600-1 bets on most table games you will probably never get a W2G from playing them.

[rlpal]

If your are fortunate enough to have a win, and receive a tax form, you can offset your winnings with any losses. Write to each of the casinos you gamble in, give them your slot club number, and they will tell you how much you put into the machines. That is your loss. For most of us, it more than offsets the win. (Darn!)