Table Games Taxes on table wins

At what dollar level does the cashier take taxes on cashing chips? On big win I heard they spread the chips with their wife cashing some or go up multiple times. Never knew what the threshold is if you don't have a marker or loss to cash against.

 

I believe you only get a W2 on a table if the bet paid out is both over 300:1 and more than $600. As for cashing out chips, you won't get a W2 but if you cash out 10K (at once or in a day?) they'll fill out a CTR. These are just off the top of my head. I don't play near these limits so I've never had any personal experience, but it's been talked about before.

 

What SC said!
Aside from a CTR?
there is no IRS involvement with table games....yet

 

No taxes on table wins, period, if you win a 100k or 1k, you do have a moral obligation of course, but vegas has a way of relaxing morals.

 

Thank you.

 

Excluding the 300:1 win rule $600 and over as described above.

And I would say your obligation is still technically legal. However, most casual gamblers won't report winnings. Can't say that I blame them.

 

You have a legal obligation to claim taxes. I guess the moral part comes in when you sign your tax return attesting to its accuracy.

 

What if you receive a check instead of cash, for example 100K? How is that tracked? Will your bank report this to the IRS? Even if not, what if you get audited?

 

If you're audited you show where you declared the win on your taxes, and you show a personal log to verify any deduction you took on losses.

 

The cage/cashier will never do a IRS tax form. Cashing in chips does not in itself show you won anything. Any larger transaction may generate a report, but it is not for IRS. It is for money laundering, etc. When I make cash deposits at my bank of over $10,000 they have to do the same report.

There are certain (rare) instances of a table win that will generate a W-2. That is done at the table where you won as mentioned earlier.

 

This is called "structuring" and it's a bad idea. As noted, they don't take take taxes or fill out any forms, but they fill out a CTR at $10k or above; this is for compliance and anti-money-laundering purposes. Trying to avoid that form can result in a Suspicious Activity Report, which goes to law enforcement. You don't want that.

 

Here's something to think about: are 'comps' a form of imputed income?

 

Not related to table winnings but I think the IRS wanted to lower the reporting amount from the standard $1200 down to some thing like $500. Not sure what happened to that one.

 

They want it dropped to $600. Nothing has happened with that yet.

 

Note always the case, if you win a high-odds play for a sum over $600 you will. For example, the "fire" bet at craps, if that gets to the 1000:1 mark, and you've got anything on it, you'll have to fill out paperwork at the table. Kind of kills the excitement of the bet when you realize its already reduced by over a third, lol.

 

Interesting to know but it sound like this occurs with some of the high "one roll" type of bets? I have won a few thou on the tables and never had a problem or W-2 created.

 

Honestly, other than the Fire bet at craps I'm unaware of anything that qualifies, since the odds have to be at least 300:1 (and I don't play any other table games really other than craps)....I suppose maybe some side bets with Blackjack perhaps?

The only time I've won a qualifying fire bet was here in Ohio...in Vegas best I've done is the 250:1 odds which would not qualify...so its possible Vegas handles things differently. In Ohio, they stop play at the table while the pit boss has you fill out the required information. Maybe in Vegas they open a bottle champagne and invite you into a private lounge area, lol, j/k.

 

Twenty years or so ago I hit a straight flush on Let it Ride with a dollar on the bonus bet. Paid 200:1 on the regular bets ($5 each), 2000:1 on the extra dollar. I got a W2G for the full $5000. I didn't include that on my taxes and two years later I got a notice from the IRS that they would accept the tax owed on $3000.

 

My buddy hit a Royal on UTH during our last trip. He got W2G'd, but they didn't withhold anything.

 

There will be paperwork if you hit a progressive on a table game. What I've seen with a 6 number firebet is that there is paperwork for a US resident, but I've only seen them withhold tax if the payout was $10000. If someone had a $5 firebet and 6 numbers hit, they didn't tax a US resident. As a Canadian resident, I receive a 1042-S and the casino withholds 30% even if it is from a $5 firebet for 6 numbers.