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Paying Tax at American Casinos

Discussion in 'North American Land Based Casinos' started by AussieGambler21, Jun 28, 2009.

    Jun 28, 2009
  1. AussieGambler21

    AussieGambler21 Dormant account

    Occupation:
    Farm Labourer
    Location:
    NSW Australia
    I wasn't really sure where to post this so please move to a more appropriate section of the forum if need be.I couldn't find a real suitable section to post this but would like peoples thoughts and ideas on the matter.

    I am thinking of moving to the US but don't like the idea of paying tax on my gambling wins so i was just wondering how much tax the casinos actually take out of your gambling wins, if you can claim tax refunds on this and generally how much of an effort it takes to declare your winnings and losses to the IRS?

    I would love to move to the US but the taxes on gambling is probably the only thing that is really stopping me from going any further with the idea however i don't mind paying taxes as long as they are reasonable.You also have to bear in mind i come from a country where all gambling wins and losses are completely tax exempt.

    So please give me your opinions.
     
  2. Jun 28, 2009
  3. silcnlayc

    silcnlayc Just one more spin pleez! CAG MM PABnonaccred PABaccred

    Occupation:
    IT Director of Operations
    Location:
    Left Hungary
    I claim my losses to match any winnings. You cannot claim losses beyond that. Taxes are based on your net income after deductions so in realty, you do not pay taxes on gambling if you can claim the same losses.

    The only time I had any taxes taken from my winnings was when playing the horses and I hit over $5000 on a race. They took a third out but I got that back when I filed taxes.

    What was strange, the casinos never took a dime of my $6000 win for taxes but the online horse racing did.

    I claim all wins at casinos and offset it with my losses there too. They keep track of this nowadays and you can get a statement online from your account to file with it if you need to nowadays.
    .
     
  4. Jun 28, 2009
  5. vegetagirl2008

    vegetagirl2008 Mafia Wars Level 472

    Occupation:
    No Job Here..
    Location:
    Brooklyn, New York, United States
    Actually the casinos do not take out anything. What they do is they ask for your social security number if you win a certain amount then they provide you with a w2 to give to your tax preparer. But playing online I really don't know about that one. But I know that I have to report any winnings to the IRS.
     
  6. Jun 28, 2009
  7. dalzilla

    dalzilla Dormant account

    Occupation:
    Purchasing manager
    Location:
    Known center of universe-Texas!
    Taxes on winnings. couple of examples

    At the Oklahoma Native American owned casino I play at a couple of times a month, here were my options on wins of 1200.00; I could take the full amount and pay the taxes later or they would withhold the taxable amount up to 20%then issue check for the balance. I took the latter option so I didn't have to worry about the taxes later. This has happened a few times and each time I did the same. Was issued a W2-G that came via mail showing gross and net with taxes withhold. I've never gone above a $1000 win on a table game so I don't know the situation there. Now... I would like to go above $1000 on table game:)

    In Las Vegas if the RNG was spitting out winning symbols, I played up to the $1199 limit and cashed the tickets separately. Ditto for Reno gambling.
     
  8. Jun 28, 2009
  9. littlebit

    littlebit Dormant account

    Occupation:
    Jack of all trades
    Location:
    Pasadena, Texas
     
  10. Jun 28, 2009
  11. GGW Laurie

    GGW Laurie Dormant account webmeister

    Occupation:
    Self Employed
    Location:
    In the Beautiful South !!
    This a off the wall ? and maybe one of you might know the answer.........If your a non resident and play at a out of state casino(tunica) alot for the past 9 years and have had state taxes withheld (mississippi) is there a way to recoup those or is that just giving money to the state, there are no state taxes in tenneessee, but i know over the last 9 years i have had several k's withheld in mississippi taxes..................... sorry for the derail o/p but littlebits post has me wondering.............laurie
     
  12. Jun 29, 2009
  13. AussieGambler21

    AussieGambler21 Dormant account

    Occupation:
    Farm Labourer
    Location:
    NSW Australia
    No problem laurie :), i would be keen to know too as i would like to find out as much information as i can about taxes on gambling wins in the US before i make any final decision on whether to move to the US or not.

    Thanks for all the information so far too everyone :)
     
    1 person likes this.
  14. Jun 29, 2009
  15. Jasminebed

    Jasminebed Closer to 100 than Birth

    Occupation:
    Not in workforce
    Location:
    Ontario
    Just wanted to add that we do not tax gambling winnings in Canada either. If a Canadian resident wins over $1,200 in a US casino, the casino makes a withholding, and you apply to get it back once you are home.
     
    1 person likes this.
  16. Jun 29, 2009
  17. Mousey

    Mousey Ueber Meister Mouse CAG

    Occupation:
    Pencil Pusher
    Location:
    Up$hitCreek
    I live in Alabama and play @ Tunica. As far as I know there is no way to recoup that tax they automatically withhold on $1200+ hand pays.

    To the OP:

    I. Nelson Rose
    You must register/login in order to see the link.

    Also go to the MeisterMall (amazon) http://www.casinomeister.com/shoppingUSA.php and look for a book entitled

    Tax Help for Gamblers by Jean Scott.
     
    1 person likes this.
  18. Jun 29, 2009
  19. anniemac

    anniemac Ueber Meister MM PABnoaccred

    Occupation:
    retired
    Location:
    Texas, USA
    I have won at Louisiana casinos also and they asked me whether I wanted withholding taken out. You have the option of saying yes or no. I always had enough deductions that I did want them holding out withholding. They do take out SS taxes and state taxes. Then you have to file a state tax return to recoup the state taxes they took out. You will get all of the state tax back as a refund. So I would expect that if Mississippi has a state tax, then you would just file a state return and get it back. It's no big deal. Get the form off the internet for the state, fill it out and attach copy of your Fed. return and send it in. Never had a problem.

    If you keep your wins below the tax limit, then you won't have to do anything. The couple of times I had to file was when I hit a jackpot.
     
    1 person likes this.
  20. Jul 8, 2009
  21. alternative_inv

    alternative_inv Banned User

    Occupation:
    manager
    Location:
    CO
    Tricky subject

    Some good info in the above responses, but in some cases it may only be partially correct.

    I know that Oz doesn't typically come after or track gambling winnings but I thought they told the guy who won the World Series (Joe Hashem?) that he got a pass for his first win because he was not a "professional" at the time, but would have to pay in the future if he was considered to be a professional gambler.

    As others have pointed out, the US has federal income tax with some states also having a state income tax. Although you are suppose to self-report, I don't know of anywhere that reports or withholds on table game winnings, but slot jackpots ($1200) and other large wins (keno, horses, etc.) are a different story. These are reported to the IRS on a W2-G (or 1099 in some cases). If you don't have a SSN or TIN, then you will typically have ~30% withheld. Some countries have a tax treaty with the US that may allow you to recoup this withholding even if you don't have losses to subtract against the wins. Not sure if Australia has this sort of tax treaty, but I know that France does.

    How you are taxed federally depends on whether you are a professional or recreational gambler.

    Gambling winnings of US residents/citizens are subject to federal income tax, but recreational gamblers do not have to pay social security/medicare taxes on winnings. However, they can only deduct gambling losses to the extent of their winnings as an itemized deduction on form 1040 schedule A. Gambling related expenses are not deductible. The disadvantage to showing gambling winnings as part of your taxable income and taking losses as an itemized deduction is that you may lose out on your standard deduction (fi you were not already itemizing) and it may bump up your adjusted gross income (AGI) that leads to phase outs of certain deductions.

    Professional Gamblers show winnings on a schedule C and can deduct all losses and expenses as part of the schedule C. The disadvantage to filing as a professional gambler is that you have to pay social security & medicare taxes on your net schedule C figure. This is on top of federal income taxes and is about 15.2% on the first ~90 K and then about 2.9% (medicare only) thereafter. In theory, the social security taxes paid help bump up the payment you would receive when you retire, but this is another subject.
     
  22. Jul 8, 2009
  23. alternative_inv

    alternative_inv Banned User

    Occupation:
    manager
    Location:
    CO
    A couple of other things...the record keeping required by the IRS is really no more detailed than a serious player should be doing anyways. However, in 15 years as a professional gambler (both personal and manager of a large team), I have had to deal with numerous IRS notices as well as 1 personal and 2 company audits that were directly related our gambling activities. None of these resulted in additional taxes owed (we have keep detailed and honest records of all wins and losses), but they have been time consuming.

    FWIW, I had no issues when I only played BJ (and kept transactions under 10 K)...it was the reporting of machine JPs that raised all the red flags.

    Whether you should move to the US or not really depends on where you think you would prefer to live and where you think you might have the best opportunities...as an example, I would much rather make 300 K a year and pay 35% tax than make a 100 K a year tax free. I don't know your exact situation, but I would say a move to the US would be fine if your winnings are of the type that stay below radar or if you could increase your above radar winnings enough for the extra hassle. Not sure if this matters to you, but if you play online, you may not be able to access all the same sites with a US address (not that there aren't some ways around this).
     
  24. Aug 7, 2009
  25. BLUEWATER

    BLUEWATER Dormant account

    Occupation:
    student
    Location:
    NoWhere
    Most casino required you pay taxes if your winning is $1200 or more. You can request to withheld taxes so you don't have to pay later. Play at the table you don't have to pay taxes. More Info at this link. You must register/login in order to see the link.
     
    Last edited: Aug 7, 2009
    1 person likes this.
  26. Aug 7, 2009
  27. gloria460

    gloria460 Meister Member

    Occupation:
    nurse
    Location:
    Florida
    I won 3600 at the Hard Rock in Tampa. I received the whole amount but when tax time came around I was hit with a 900.00 tax and no the loss of 3600 did not offset the tax...I ended up owing that year. It was on slots so they take roughly 25% of everything over 1000.00 here.
     
  28. Aug 7, 2009
  29. me_and_ed

    me_and_ed Ueber Meister CAG MM

    Occupation:
    Selling out
    Location:
    Vancouver
    I won 20k 2 weeks ago playing Mr Big Boss ($2 bet :)) in Washington State at Skagit (Native), the took 6k off the top, I am now trying to get my losses from the winners club to try and get back this money. BTW I am in Canada.
     
  30. Aug 7, 2009
  31. RobWin

    RobWin closed account

    Occupation:
    Who knows?
    Location:
    A Vault!
    Gloria, you definitely need to find yourself a better tax accountant based on what you said above. Re-read Silc's post again too..;)
     
  32. Aug 30, 2009
  33. Darem1

    Darem1 Experienced Member

    Occupation:
    I was an accountant in a previous life
    Location:
    Florida
    Additional tax information regarding American land based casinos

    I wanted to clarify a couple of the above postings. First of all, in order to claim losses to the extent of winnings you have to file schedule A along with the 1040. This is the schedule of itemized deductions. If your itemized deductions do not exceed your standard deductions by the losses you in effect do not recoup them, since you would be entitled to whatever the standard deduction amount for your age and marital status would be.
    Now, to reference the Mississippi state tax that is always deducted by the Mississippi casinos. Mississippi passed a tax law several years ago that makes
    the amount withheld belong to Mississippi and those from other states cannot file an out of state Mississippi return to recoup those taxes. :mad: What you can do is to add the amount withheld to your schedule A (if you file one) together with any other state taxes withheld i.e. from a paycheck. The key to recouping your losses is filing that schedule A - itemized deductions with your federal tax return. Keep good records - the best way to do this is to get the players club cards from each casino and you can get a win/loss statement each year to support your losses. You can also use losing dog and horse track tickets, lottery tickets, etc. to support losses. Hope this helps.
     
  34. Aug 30, 2009
  35. Darem1

    Darem1 Experienced Member

    Occupation:
    I was an accountant in a previous life
    Location:
    Florida
    P.S. go to Canada

    If you do decide to come here, welcome to the United States! But you may want to look into Canada if you can stand the cold. I lived in Canada for not quite a year until the cold weather chased me back to the States, but I found Canada to be nicer, cleaner, safer, the people nicer, etc. Much less nonsense on TV and in the politics. I don't want to seem un-American, I love my country, but I had a wonderful time up in Canada many years ago and I would go back any time they can figure out how to keep it temperate up there, lol. They also have universal health care up there that we may or may never get down here. But you gotta love snow.......and it starts in OCTOBER! At least in Ontario it did. :lolup:
     
    1 person likes this.
  36. Aug 30, 2009
  37. 4 of a kind

    4 of a kind Repeated violations of forum rule 1.16 - troll

    Occupation:
    Trans. Tech
    Location:
    New York
    If you had to pay extra taxes on gambling winnings after all the options available to avoid that, it may not be a bad problem.

    I certainly wouldn't mind paying the taxes on the 333 million dollars won today by one person in the lottery.

    In the past years whenever I had to pay extra taxes as a result of gambling, it always was a good year.
     
  38. Aug 30, 2009
  39. AussieGambler21

    AussieGambler21 Dormant account

    Occupation:
    Farm Labourer
    Location:
    NSW Australia
    All country options are open for me right now as i would love to live and work in another country and part of that decision for me (a big part anyways) is the view on taxes and gambling and if they do have a tax on gambling how easy it is to do the paperwork and whether you get most of it back in the form of a tax refund.

    The only thing that would keep me in Australia right now is my successful entry into the Australian Armed Forces. Although if i was able to somehow get into the US Army, it would be a no brainer and i would fly over tomorrow if i could.

    I don't mind the cold at all and have never experienced a white christmas, let alone snow (except once when i was about 12) as i have always lived in a part of Australia which never snows (ever).

    I would still consider Canada however i am not too sure about their views on gambling and taxes, how many casinos they have and more importantly how easy it is for Canadians to enter the US, not to mention what their laws are on internet gaming?

    On another note thanks for all the info everyone has provided as it has been really helpful :)
     

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