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Jackpot 1099

Discussion in 'Casino Gaming' started by 33hard6, May 13, 2013.

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  1. 33hard6

    33hard6 Tourist

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    I don't normally play slots or VP, more pit and NLH 4-5days a week at my local card room.

    However this year I was lucky enough to get 3 1099's in the few slot/vp sessions I have played . None are very large the biggest being a RF on VP for $4582.00 (Progressive I guess as I thought they paid $4000.00 on a $1 machine)

    Anyway, wondering what people's thoughts on taxes, do you request the taxes be taken out at the time of winning the jackpot, or do you take the full amount and offset your loss and tax time, if you offset your loss you can only claim a loss up to the amount of the jackpots right? I won a bad beat jackpot 15years ago for 32k but don't remember how I went about the taxes nor can I locate the paperwork.

    Anyone have any tips they might be willing to share, yes I have time yes I could ask a tax professional (I will also do that) however I don't have a professional gambling tax wiz guy and would love insight.

    Thank you in advance.
     
  2. Joe

    Joe VIP Whale

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    If you are US citizen, never have them withhold taxes. Why give the government a free loan for x number of months.

    I have always offset my winnings by claiming losses that equal the winnings for federal.

    Depending on your state, they may not let you claim losses as a deduction. Wisconsin no longer does, so all winnings are taxed.
     
    Christmas
  3. 33hard6

    33hard6 Tourist

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    Yea I am in CA, since I keep 2 bankrolls "Life" and "Gambling" and don't really want to pay gaming taxes out of either, I will just start a 3rd bankroll putting aside a percent of each jackpot to pay taxes later.

    Now you wouldn't know the taxable amount would ya?
     
  4. catfishncwc

    catfishncwc Tourist

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    Wish I had those problems, my wife and I have never had a hand pay. Though I have had a few $1000 slot wins and without the tax on them they are more than a $1200 handpay. But once just once I would like a handpay for the excitement of it.
     
  5. 33hard6

    33hard6 Tourist

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    One hand pay was for $1289 I was so pissed I actually joked and asked the casino if they could pay me $1199.99, I was betting something like $10bucks a spin on a .5 machine. the RH I hit on Friday was the 1st I ever hit, don't take records of VP or Slot plays since it was rare for me to play them but if I had to guess I have played less 5k hands of VP
     
  6. DeMoN2318

    DeMoN2318 The DERS

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    If you offset all of your winnings by your losses then why make this third account for future taxes?

    Granted if you win a million dollar jackpot its pretty unlikely you would have had a million in loses to offset the whole amount. But for smaller wins, id say under 5k, just offset...how are they going to know.
     
  7. archie1959

    archie1959 Low-Roller

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    @ Foxwoods 2 years ago I hit a royal flush that was 1,210.00 on July 4th
    I am a MA resident and took whole prize.
    Then went to MA greyhound track to pick up losing tickets.
    Paid nothing to Fed.
    Only MA tax
     
  8. 33hard6

    33hard6 Tourist

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    I can just driver to the casino and cash a check at the cage for say like 10k to cover my jackpots and then "LOSE IT" playing before I driver home. and your saying I would pay zero Federal?
     
  9. DeMoN2318

    DeMoN2318 The DERS

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    I guess if you got a receipt from the casino when you cashed the check then you have "proof" if they audit you
     
  10. nostresshere

    nostresshere Mr. Anti Debit Card

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    I laugh out loud when I read these things.

    Please explain the difference in these two scenarios as explained to the IRS agent:

    a) after playing at Foxwoods, I went to the track and played a ton of bets. Here are all my worthless tickets

    or

    b) After winning, I stayed up all night playing at slots and blackjack, and lost the whole thing.
     
  11. nostresshere

    nostresshere Mr. Anti Debit Card

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    You have proof you cashed a check. You do not have proof at that point that you bet even $1.
     
  12. Reston

    Reston VIP Whale

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    Contemporary records and receipts such as these are very useful in passing an IRS audit. Per the IRS:

    "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."
     
  13. WrongWayWade

    WrongWayWade VIP Whale

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    Remember, you also have to itemize deductions on your federal tax form (this is where your gambling losses go), in order to claim losses against wins. If you can't come up with more than $11,900 in deductions of any kind (2012 married number), you're just going to have to pay the full price on the income reported on the W2-G. (I'm pretty certain it's a W2-G you get, not a 1099.)
     
  14. DeMoN2318

    DeMoN2318 The DERS

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    He isn't making tons of bets...he is going and picking losing tickets out of the trash or off the ground so he can claim them as his loses and offset his win...the losing tickets are proof if he gets audited
     
  15. DeMoN2318

    DeMoN2318 The DERS

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    And they have no proof that you didnt bet it all on black...
     
  16. DeMoN2318

    DeMoN2318 The DERS

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    I was not aware of this!! I thought if your loses offset your win then you could just skip the W2-G...

    That's how I always did scholarships and grants in college...my expenses offset all my rewards so I just left it all off...
     
  17. jamesxnj

    jamesxnj VIP Whale

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    Exactly this.
    I have never had a casino handpay but a racetrack 'signer'..but being single even with a lower personal exemption,still not enough deductions to be able to claim losses.
    And from what I understand-if audited and losing tickets are provided-they better not have any shoeprints on them..IRS likes a daily journal and I believe losing lottery tickets also qualify..
    I know of a pub in Ma that sells state lottery scratch-off tickets..They band together stacks of losing ones in increments of $$$ for the next winner.

    My latest dilemma is playing high-stakes Fantasy Football..any legit operation reports and issues 1099's,but to deducts the expenses (Airfare,hotel in LV,entry fees) is to require a schedule D and there is no 5 digit code to enter or classify what type occupation/Fantasy Football as..It is still a grey area with the IRS as whether this is skill related or gambling related.

    If I win $2500 that is extra income even though it cost me $2000 to win that.Frustrating to say the least and even H+R BLOCK could not/would not handle it for me.


    Anything I win I just put into an IRA and offset the extra income.and I will deal with it then..
     
  18. merlin

    merlin VIP Whale

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    No need for any paranoia when it comes to offsetting a couple relatively small w2-g's, your chances of being audited are almost nil, and even if you are, the only possible downside is they disallow it(if they dont like your evidence), then you would simply be paying what you would have anyway.

    As mentioned you need to itemize to offset. about 6K single, 11K joint.
     
  19. 33hard6

    33hard6 Tourist

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    Thanks for the insight
     
  20. shifter

    shifter Degenerate Gambler

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    LOL!!!!!
     
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