Payouts/Taxes

[mschaching]

A few questions Regarding Payouts/taxes?Is the magic number $1,200 on a single win or on a single machineDo you have a choice in how it is payed outDoes being from out of state matter If you have the choice SHOULD you take the taxes out right away or deal with it laterDo table games have the same tax criteria What will you actually walk away with hitting a RF on a dollar machine(my new goal)Heading to vegas in August and want to be prepared-the more you play the higher the payout you want...  thanks

[BOOPSAHOY]

-anything over 1199-
-I dont know if they will give you a check for 1199 but for higher wins they will-
-dont know about being out of state
-Ive never been given the choice
-From what I recall when my hubby got a straight flush on carib poker -yes they give you a W2
-$ royal is usually 4000

[JIMDUECE`SWILD]

 o I hit a progressive jackpot last year for $1200.25. I got a W2G.
 o Receiving a check depends on the size of the jackpot.
 o Out of state- NO
 o  IMO - Depends on the size of the jackpot. If I hit for $50,000 or $ 100,000 I would have taxes taken out. Smaller amounts I don`t.
 o I think anything at $10,000 or greater is documented.
 o $4000

[shadowman]

Single wins of $1200 or greater require a W2G to be issued. The casino also reports the win to the federal and state governments (if required by the state). However, all casino wins are taxable so this really does not affect your tax responsibility.
You can have the casino deduct taxes if you like. It generally depends on your own situation. Over the last few years I have paid estimated taxes instead of having the casino take anything out.
 
Gambling losses are deductible on your federal returns (and most state returns). However, you must itemize to claim these losses. If you do itemize then you may not need to pay any taxes at all on W2G wins. If you normally lose money for the year and do itemize taxes then there is no need to have the casino take anything out.
 
Various states have different laws. You need to examine your own state's laws to understand the requirements. Nevada does not have personal income tax so you don't need to worry about paying taxes there.
 
Every time I hit a RF on a non-progressive dollar machine I walk away with $4000 - tip.

[rascal]

It varies so much from state to state. When I play in Nevada, a $1 royal is $4000. In Mississippi, it is $3880, because 3% is deducted for state taxes and this is not optional. In Louisiana, it is $3760, because 6% is deducted for state taxes --- however, out of state players who don't have a Louisiana address can apply for a refund.
 
As far as federal, assuming you document your play, (and are not a professional gambler) you can deduct all losses up to the amount of your wins, so it's generally always a wash for me. If you get audited and your documentation is not accepted, then you owe more taxes and a penalty, but they're not going to throw you in jail or anything. For that reason, I always advise anyone who is not a professional gambler to skip any federal withholdings on jackpots if possible, and then simply even out the taxes with losses. (If you don't give the casino your social security number then they are required to withhold federal.)
 
As far as checks, most casinos in Nevada will issue checks for wins of 1000 and over. Sometimes you need to be pushy about it, and they might make you wait, but you can generally get a check. Taking a jackpot via check is an excellent cash management technique --- playing out of your bankroll but not your winnings. I always get a check for jackpots of $2000 or higher, without fail. Rarely if ever have I had a problem.

[shadowman]

You should also keep in mind that the IRS rarely applies logic to the way it handles gambling. For example, you could hit a RF and still lose money. However, if your 1040 does not show an amount equal to or greater than the total of your W2Gs then it's quite likely you will be audited.

[BillyJoe]

For my 2 cents worth, the problem usually is not the federal taxes on handpays, unless you get some very large one, like $50k, that you my not be able to offset with gambling losses. The problem is that every one of those W2G's (and any other winnings you choose to claim ) contribute to your Adjusted Gross Income on your federal return. The AGI is used to calculate your eligibility for other deductions on your federal returns. So a stack of $1200 W2Gs really add up with regard to lowering deductions, and raising federal taxes.
As far as table games, the only time they will issue a W2G is if you win a "carnival" bet, like a bonus pot on Caribbean Stud or Let It Ride. The normal bets are not accounted for - they rely on you being honest with the Feds about win/loss.    

[Lucky Larry]

We see lots of La. players playing multi-hand VP just under the G-2 level number of hands. Especially since in La. there is the G statement plus the 6% La. state tax taken out.

Even those of us from out of state pay the 6% and in recent years not all of it comes back when you file a non-residents La. income tax.

LL

[spxChrome]

Is the magic number $1,200 on a single win or on a single machine
Single win not really a machine, in LA machines will go beyond 1200 in MS anything that goes over a ticket will be spit out.
Do you have a choice in how it is payed out
Yes, but if its late a check is harder if the right people are not there.  You can also do both.  I hit a 8K once.  Got a 5K check and 3 in cash.

Does being from out of state matter
State tax varies % I didnt know about the out of state.  I have several W2 from LA I'd like to know more on how to apply for a refund.

If you have the choice SHOULD you take the taxes out right away or deal with it later

Only if you plan to never gamble..  Always track you deducts against your taxes at the end of the year.  My first 2 years I didn't know you could do this and paid the Tax and never wrote off my loses.

Do table games have the same tax criteria
No, most table games have limits,  you can win thousands of dollars with no W2.  Only win its a transaction over 10K is it reported. 

What will you actually walk away with hitting a RF on a dollar machine(my new goal)

Only you can tell us that, walking away and going home are two very different scenarios z

[Lucky Larry]

Does being from out of state matter State tax varies % I didnt know about the out of state.  I have several W2 from LA I'd like to know more on how to apply for a refund.


To get La. refund you must file a non-resident income tax form (we do it online) after you turn in your Federal Income Tax and prior to May 15. We used to get all 6% refunded but it seems they now base % back on our AGI(?) on our Federal Income Tax. They used to have really complicated forms but they were much easier this year. Took about six weeks for our refund.

Make sure you send a copy of your G statements since even though the casino keeps a copy, the state of La. doesn't have a record.

LL