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Jackpot taxes

Discussion in 'Misc. Vegas Chat' started by brianbb98, Apr 29, 2015.

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  1. brianbb98

    brianbb98 Tourist

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    Those of you who've received handpays, did you have them withhold the taxes at the casino?

    I've had a couple good payouts over $2k but never a single win of over 1,199 but I'd imagine it would be better to get rid of that 28% or whatever right then so you don't have to think about it come tax time. Is this pretty common?
     
  2. DonD

    DonD Super Moderator

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    I'm not sure about the slots, but in horse racing they start withholding at $5,000.
     
  3. shifter

    shifter Degenerate Gambler

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    No way.

    Keep your money and deduct your losses to offset.
     
  4. DonD

    DonD Super Moderator

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    For horseracing bets they withhold at $5,000 for a 300-1 bet. I have had it done many times including 2014. You can deduct your losses at tax time and get it or some of it refunded.
     
  5. S'AllGoodMan

    S'AllGoodMan High-Roller

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    I don't have taxes taken out for the same reason as Shifter. I do need to pay state taxes on my wins, they're not offset by losses.
     
  6. Piggylane

    Piggylane Well-Known Member

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    I suppose if you had a progressive jackpot hit and they paid it all out, not sure if they all do, and if you were in a lower income bracket and a poor record keeper it may make sense to have them take out the Federal and any State tax. Remember, if you significantly under pay you can get hit with a tax penalty.

    Also, the casinos are thrilled when they payout big jackpots. They know 98% or better of us will give it all back! So, if you end up with a pile of W2-G's and not enough gambling losses that you can safely declare then back up with documentation (if they want to be hard asses they may not accept casino win/loss statements according to my CPA), then how are you going to pay the tax?

    Personally, W2-G's $20K and under I take in cash. I've only had two or three above that and I had them take the taxes out. Took longer. Worked out for me but everybody's tax situation is different.

    $5000 on a horse? 300 to 1? Must have been a grey one!
     
  7. DonD

    DonD Super Moderator

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    You may be required to withhold 25% of gambling winnings for federal income tax. This is referred to as regular gambling withholding. Withhold at the 25% rate if the winnings minus the wager are more than $5,000.

    http://www.irs.gov/instructions/iw2g/ar02.html#d0e170

    I have never had a choice, they just withheld it. I'm talking about horse racing. The link above will explain more.
     
  8. sindustry

    sindustry VIP Whale

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    One of my buddies had a ton of w2gs last year. When his accountant did his taxes, he recommended for my friend to ask the casinos to withhold after winning a decent amount. He did not tell me what a decent amount was, but it seems like that is the advice he is going to go by going forward.
     
  9. oghuman

    oghuman High-Roller

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    I play mostly VP and I get quite a few W2-Gs. I never voluntarily take out taxes. I've take one trip to New Orleans each of the past three years and usually get at least a couple while there. They automatically deduct state taxes. I file a Louisiana tax return and get my refund. Unless you don't itemize to deduct losses it makes no sense to take out taxes unless you know for sure in a December win that you'll have to pay lots of tax. Hold your money as long as you can before giving it to the tax man.
     
  10. Guy_

    Guy_ Low-Roller

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    I am from Canada so they automatically hold the taxes.
     
  11. DaiLun

    DaiLun R.C., L.C., and A.A.N.G.

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    I live in California. No need to withhold in California or Nevada.
     
    New Orleans 7* retreat. Food, food, and more food . . . .
    Tentatively Tahoe or LV . . . .
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