Guys, I found this article Zacks but it doesn't have a publication date. Are these amounts still correct for what would trigger a W-2G? http://finance.zacks.com/much-state-federal-tax-withheld-casino-winnings-3079.html
On slots and video poker any jackpot of $1200 or more triggers a w-2g. The denomination of your bet does not matter. Meaning if you're on a $100/credit slot, you get a w2g for a 12 unit win even though your profit is $1100.
I can attest to the denomination. I saw a gentleman at Caesar's playing $ 100.00 Wheel of fortune slot. Essentially everytime he hit the spin bonus he generated a W-2 G. They actually had a casino rep with a portable computer of sorts sitting next to him to expedite the process. Must be nice.
Won $3000 on a slot last november at mgm all tax free One of the few things thats good about being a UK citizen
So no minimum on this? If I won a dollar I would "technically" have to report it? I was thinking at some point I heard you needed to report it if it was at least 300 or 600.
It's earned income. You heard a rumor. Will the IRS come a knocking if you play 1 spin on a 2 reel dollar slot and win $10, then fail to report? No, but the $8 is net earned income. Nick
Ok, thanks for this. I assume you also have the option to withhold too. If so what percentage is withheld?
As mentioned, every dollar you finish AHEAD is taxable income according to Uncle Sam. As far as the W-2G (or even table or smaller slot wins that you feel you need to report:evillaugh), you can offset your wins with your loses. So just because you hit a jackpot doesn't mean you owe taxes on all of it. If you finish the year down or even, you don't owe anything to the IRS (your state might be different though). So remember to keep that gambling log (or be prepared to fake it should the auditors come calling).
I believe the standard is 30%, but I'm pretty sure you can direct them to withhold whatever percentage you want them to. So long as you provide all the applicable documentation, they aren't required to withhold, so you can just ask them to.
Normally, they do not withhold anything, or even ask. I don't have them do it as I deal with withholding elsewhere and do not want the casino to worry about.