This may have been asked before so sorry in advance. The question is simple 2 friends decided to play a slot machine or VP as a team and split the buy in say $100 each, while playing they hit a jackpot will the casino split the winnings on 2 different tax slips? I know for poker tournaments like the WSOP you can fill out as many as you want listing mutli people, this is done for people who have backers.
Actually, they can do multiple forms but they wont. They will say its not legal but its on the books that they can do this, just too much time and effort for them. You can take care of the taxes at the end of the year. Its an easy process you can look up.
I used to play the same video poker machine with a friend. When we got a W2G, we would mentally deduct 25% from the pot, and split the remainder 50/50. The person who took the W2G got the extra 25% along with the tax liability. Example: Jackpot amount = $4,000 25% = $1000 50% of remainder = $1500 One of us took $1500 and no W2G, the other took $2500 and the W2G. I'm aware that the one who takes the W2G may not necessarily have to pay those taxes, as they may deduct losses against the winnings. Nevertheless, it was an easy way to prevent any money issues between friends. And a little money is worth it to preserve a friendship, IMO.
i would surely go with you, since I always have a loss anyways. Getting $1,000 extra to blow that night in the casino is awesome! LOL!
Me also, but you still have state taxes, in most states, to pay and the W2G gets included in your federal AGI. That can affect your tax rates and other things.
So very true. In fact, it has such a hit, I have been avoiding higher limit machines with their nice handpays and resulting paperwork. It all goes back in the machine anyways.
