Shouldn't The $1200 Jackpot Threshold Be Increased?

Just recently found out that the "Wins $1200 or higher is a Jackpot and must be paid by attendant" is a holdover from the 1970s, when $1200 was worth way more than it is now, and also almost 50 years ago. $1200 today is just a month's salary for many people and not really big money like it was in the 1970's. Back then, to point out how much money could get you, a $5 could get you to see a movie, get popcorn and a drink and a Chinese Lunch. Nowadays, $5 can get you a Whopper Jr meal at Burger King and that's basically it. For a movie, popcorn, drink, and Chinese Lunch in 2016 it would run you a good $35 for what a $5 could buy you in the 1970s!

So, as someone said, in 2016, the Jackpot threshold should be $5,000 at the least to accomadate how much more expensive life is in 2016 than it was in the 1970s.

 

Damn right it should be...unfortunately the govt is actually talking about reducing it, to maybe $600, imagine that?

 

Yes, there was some talk about reducing it. They would like to track every single penny.

The really bad part of this makes me want to avoid getting a W2-g like I did the other night.

I get a W-2g for $1450. By time the night is over, I have given it all back. Result - ZERO win.

Since I have no other deductions to make itemizing worthwhile on my taxes, I now pay another 20% of that money to Uncle Sam. I lost all my money, and then some, but I have to give Uncle Sam $480 I do not have. But, if they had paid me $1199 and I lost it all, then fine.

Just is stupid and sucks.

I get paying taxes on my INCOME and pay it because that is what citizens do.

 

At that point I might as well just stay here and gamble in Canada. Our machines may be tighter but no tax would be a much bigger difference. I don't hit handpays there so haven't had to pay it yet. That plus the exchange rate and there would be no point.

 

Holy crap! I heard about that somewhere, but heard that the slot manufacturers vetoed it, which was a smart move, as they know that Gamblers would not be happy about having to pay taxes on a $600 win if they are not happy about having to pay taxes on a $1200 win. What the hell is the Government thinking proposing lowering the tax threshold in half? Of anything, they should be raising the tax threshold. Like it's been mentioned, a $5000 threshold at minimum would be ideal

 

Is complaining or even commenting about the unfairness of the W2G reporting system political?

 

Ok, I say it's unfair, I also say you should not lecture people about being political , until they say something political. Unless if you removed it, i dont see anything political in this thread yet.

 

Fine, but wait till they do it, seriously, relax a little, many, many of us, lose our ass at the slots, finally get a modest win and end up paying taxes on non income. They're complaining about it, saying it isn't right... it isn't right, let them complain, it's not political, it's pocketbook.

 

I'm sorry. I totally forgot about the no Politics thing.

 

I tried to edit this before but I ran out of time. I didn't mean to make a political statement, I was just expressing how much of a bad idea lowering the tax threshold to $600 really is, when the tax threshold of $1200 already makes Gamblers resentful.

In theory, if the lowered tax threshold goes into effect, the Casinos will lose money because Gamblers will start to play less than they usually do so that they don't hit the lowered tax threshold. There will be a lot more people getting off dollar machines and going on the 1 cent machines.

For example, High Roller Bill who usually plays $10 a spin on the dollar machines goes to Coyote Moon, a 1 cent penny machine that he manually converted into a 5 cent machine. He plays 1 line times 5 or a .25 a spin. He gets all of the Coyote Moon symbols on his line, which is $10 at 1 times on a penny machine, but since he did it times 5 and manually put it as a 5 cent machine, it pays him $500. He doesn't have to pay taxes since he did not hit the lowered tax threshold of $600. The Casino loses money because Bill is playing only .25 a spin rather than $10 a spin. This is just my educated theory on what could happen with a lowered tax threshold.

 

First of all, I think it's absolutely ridiculous that you have to pay taxes on winnings from something that is purely based on luck. I really feel bad for you. That said, it should definitely be increased to account for inflation. The most bizarre thing on this is that if one was playing $1000 Top Dollar for example, 2 credits, hit blank - blank - triple diamond. That pays 2 credits, which is.... exactly as much as the original wager. Breaking even on a spin is considered a jackpot which would trigger a W2G.

The system is broken. I'm glad I'm one of the lucky ones who don't have to deal with this.

 

I remember someone saying he didn't know the slot machine was malfunctioning saying "Jackpot" everytime cashout was pressed and put $300 in it. He said he suddenly didn't want to play the game anymore and hit cash out within seconds. He got a sign reading "Jackpot! Call Attendant for assistance!" He said it was bizarre and the first time he ever had to sign a Jackpot paper to get his own money back.

 

That's not likely a "jackpot paper" or W2G if he was just getting his own money out. Sounds like that machine was setup to require hand pays. Two different animals all together.

 

Item #1. It seems that the $600 limit has been iced, at least for the time being (So say's a CDC story by Mark Gruetze).
Item #2. Assuming you're W2G's don't total over a few thousand, and you're already itemizing your taxes, writing your gaming losses off against your wins is fairly simple. It's when they get into the tens of thousands (or more) that you will want to be prepared with more substantial proof of offsetting losses, as the IRS takes a much greater interest at those levels.
Item #3. Technically, the IRS want's you to report all gambling winnings, regardless of whether they've reached taxable reporting levels. And it's been that way for decades.
For more info: https://www.irs.gov/taxtopics/tc419.html

 

I can't see someone reporting a $400 win on their taxes, LOL! (the thing about IRS wanting every win to be reported on their taxes)

 

Years ago, it was pretty common down here (MS) to see machine jackpots that capped out at $1,199. I haven't seen one of those in a long time. I guess people wanted the bigger jackpots and were OK with paying the taxes on them.

 

Coming from a country where the player pays no taxes on any form of gambling wins (lotteries included) I can't fathom having to pay 20% on a slot win over $1200. What confuses me even more is that tax being paid on large wins on table games seems to be more of an honesty system & it seems quite simple to get away with paying no taxes if you are smart about how you cash in your chips, even though it may be illegal to do so.