w2g withholding

if u live in nevada thees no state tax

 

same with WA (I live in WA)

 

In theory the IRS wants you to keep a detailed log of all your gambling activity, down to the slot machine number. How the IRS handles this in a practical manner, I have no idea.

 

thats not practical, im sure only pro gamblers would be able to do something like that

 

https://www.irs.gov/taxtopics/tc419.html

May also want to give this thread a read. Good info in there also.

 

Why do casinos provide win/loss statements if you can't use them in any way?

 

in my experiences the casino doesn't and doesn't want to withhold taxes on aW2G, however on a jackpot of over $5,000 they are
required by law to withhold 20%, I know because it happened to me.

As far as the IRS, you can legally claim a deduction for the total of your W2G's. It's pretty much an honor
system using a win/loss statement or piles and piles of lottery tickets unless you list your occupation as a professional gambler.

State taxes vary.
Here in Mass, you can only deduct the amount of the bet that triggered the W2G
Say you put in money in a machine and spun $5 a spin and hit a jackpot, all I can deduct is $5.


It's strage how you can win thousands and thousands playing blackljack or craps and no W2G,
but that's another discussion.

 

I won $7,776 in 2012, and they paid me every dime.

 

1. They will catch up with you. I forgot to claim some income 3 years ago that was reported to the IRS. Received a letter in the mail last year with a cheery invoice from the IRS for more money.

2. You only need to prove your losses if you get audited. My tax preparer didn't care about the documentation for losses. She just put down losses equal to the W2 win and zeroed it out. If you win a few thousand, just zero it out if you're itemizing. You win $50k you might want to have some records of your losses.

 

Nightmare. I tutored a middle school student of a neighbor while in college for math. They didn't pay me a great deal (like 400$ for 20 sessions). I remember signing and receiving a copy of the agreement to tutor and didn't give it much more thought. Still have it.
It said I agreed to tutor for X $'s and withholding would not be taken during this window. I was in college. I assumed it was to verify his receiving assistance, making an effort, whatever. He was awful at math but got a bit better.
FOUR years later I get a letter from the IRS (1981) asking for original funds plus penalties and interest. I had file the short form as part time work / full time student was about it. Cost me over 600$. It was 100% my fault for indulging in sex, drugs, and rock and roll
I owed maybe 16$-30$. My defense was I made an error and had it been pointed out in 1977 it would have been much less. I paid promptly when notified of the error. They agreed but I still owed over 600. So they actually make more money by waiting. What a con.

 

re: Auto withholding - I have had a few jackpots over $10k. Never had anything withheld unless I asked. Only did that once with a $20k win - my choice.

re: Reporting, not reporting. I am sure a computer somewhere matches up the numbers from the casino to your tax return. I report all W-2s.

re: Getting 1099. I have never gotten a 1099 from a casino. And no year end reports or forms from casinos. (I get 20-30 hand pays a year)

re: Why do casinos provide win/loss reports? I guess because players want to see them?

re: What will the IRS require from you? Nothing, unless audited. The it is up the agent to decided what is acceptable. See link from earlier. A win/loss would surely be helpful.

re: Only a professional gambler would keep track. Has nothing to do with that, unless of course that person is deducting expenses as if a business.

 

The W2-G is the what you need to file to report gambling winnings. They don't lead to 1099s. 1099's are for contest winnings but I don't know how big of a win you need to have to report them.

I doubt that. The casino will file the W2-G with the IRS just like an employer will file a W2. Sooner or later it will be noticed if what you report for income doesn't match what they anticipated.

As for withholding, with my one experience, they ask. NV doesn't have income tax so fortunately, you are subject to state withholding. In other jurisdictions, you have to pay their state income tax and for many states, there is no way to write them off.