US taxation on gambling wins

[jetset]

Good article here on new tax provisions affecting US land casino players who win over $5 000.

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[pokeraddict]

Yeah isn't this crap? I wonder how many fewer will be playing big tourneys, especially people from outside the US. 25% is beyond ridiculous too.

 

[SlotsWizard]

I guess poker is right up there with lotteries now?

And the court ruling referring to in the following quote sets a convenient precedent for the DOJ etc. -

Language in the new tax code pointed to a tax court ruling that took place earlier this year. The ruling held that tournament poker is not a skillful competition and should be considered a gambling activity, at least for the purposes of taxation.

No doubt that ruling will be used in the future to squash any hope of online poker being deemed a skill game.

"At least for the purposes of taxation" my ass.

 

[tennis_balls]

such bullshit!......brought to you by the toilet-stall toe-tapping american taliban

 

[SlotsWizard]

such bullshit!......brought to you by the toilet-stall toe-tapping american taliban

"I'm telling you, I picked up the piece of toilet paper with my right hand."

"You had a wedding ring on your hand, I saw it with my own eyes. It was your left hand."

"Okay, then you saw something that didn't happen."

(I'm paraphrasing here)

 

[Mousey]

So if they take out their 25 (f*ckin') percent when we win, does that mean we can get it back if we overpaid our taxes come tax time?

 

[BingoT]

The government still hits us already.
If you hit a jackpot of $2000.00 they take the money.anything over $1199.00 And the State where you live take some too.
The best is save all your old lotto and your gaming loses and clam them.You have the right to clam up to what you won in loses.

 

[silcnlayc]

Taxes

The best is save all your old lotto and your gaming loses and clam them

You can only claim what you lost in the year you gambled. Old tickets are no good. It is stated that if you lost in 1999 you cannot claim it in 2005 (an example).

It is in the year of the loss and win you can offset each other, otherwise it is a wash..or in otherwords , you SOL and have to bite the bullet and pay your taxes on the winnings as an income for that year.

If you win at the track, the only offset is from track winnings. Same as if you win at a casino you can offset losses from the casino. Like as like win loss are allowed. You cannot file losses at the track against your casino winnings. Sucks, but that is the way it works.

I have been filing W9-G forms for many years...hope this helps.

 

[BingoT]

The best is save all your old lotto and your gaming loses and clam them.You have the right to clam up to what you won in loses.

I would think everyone knows this.That you can ONLY clam what you lost in that year.I did'nt mean old stuff from 10 years past.
When I won that $14500.00 I saved every ticket I found at the Dogs,Lotto's,Jai-Alai up to that amt
In That Year

 

[victor_tenn]

let try to repeal the IRS in the next election then.

Hi Everyone,
This is my first post, but maybe it a good time to tell everyone here to read about The fair tax at thefairtax dot org. Let's abolish the IRS in the next presidential cycle if we can.

Just a thought.

Sincerely,
Steve

 

[silcnlayc]

Actually many don't...

I would think everyone knows this.That you can ONLY clam what you lost in that year

BingoT, many don't know this. I have run across many of my friends who play at gambling and always thought they could claim losses in one year from another and the same for the types of wins/losses. They thought they could write off track wins from gambling at casino losses...just thought I would refresh the USA players on this minor oversight of our wonderful governments nit picking..

 

[lojo]

BingoT, many don't know this. I have run across many of my friends who play at gambling and always thought they could claim losses in one year from another and the same for the types of wins/losses. They thought they could write off track wins from gambling at casino losses...just thought I would refresh the USA players on this minor oversight of our wonderful governments nit picking..

I think it was during Reagans admin that the carry over was abolished... three year averaging.

Old myths die hard

 

[lojo]

Do casinos still require W2G for slots at 1200? Do they require this as well from Poker tourneys or does the new ruling make it 5k?

A bit OT, but not really

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seems to be a case where a judge was found guilty of filing false tax returns because "US Court Rules Not Reporting Gambling Activity When Net is a Loss is a Crime". That, my friends, sucks.

This is a shocking case because we suspect there are many gamblers who do the same thing, only claim winnings if they are reported to the IRS on a W-2G, "Certain Gambling Winnings", then offset that amount with losses of an equal amount. The rest of their gaming activities do not get reported because of the faulty premise that it does not matter because there is enough losses to offset the winnings that were not reported to the IRS. In the years that they do not receive a W-2G, they, as did the judge in the case above, do not report either their winnings or their losses.

Story Link Removed ( Old/Invalid)

 

[Atlanta]

Damn. They expect us to defeat the odds that is already against us in a casino. And then give them a cut. Yep we as American People allows anything.

I would like to know...What would happen if enough people decided to stop paying their taxes?

 

[SlotsWizard]

What would happen if enough people decided to stop paying their taxes?

The news would become a lot more boring - we wouldn't be able to watch republicans make asses of themselves.

 

[lojo]

The news would become a lot more boring - we wouldn't be able to watch republicans make asses of themselves.

Is that what the good senator was trying to make? LOL there were 6 guys in a two head bathroom at a concert the other night in Utah, I held my nose and said, 'paging larry craig, paging larry craig' and they scattered. bwahaha

 

[SlotsWizard]

Is that what the good senator was trying to make? LOL there were 6 guys in a two head bathroom at a concert the other night in Utah, I held my nose and said, 'paging larry craig, paging larry craig' and they scattered. bwahaha

What a great way to clear a bathroom when you need a toilet in a hurry!

 

[pokeraddict]

If you file as a pro you can carryover your losses from a losing year into a winning year as long as you have shown a pattern of being a winning player. For example I have filed as a winning pro since 2003 (some years with other income too) so if I have a losing year I can write off the max that year and carryover any losses over the max as a business loss. Of course talk to a tax advisor before doing this.

 

[Simmo!]

What I don't get is this:

When you hit a $1200 in a B&M in America you get a "Call Attendent" message up and the screen locks, and you have to do all the IRS forms. So how do high rollers cope with this? If someone is spinning $50/$100 or more a spin, surely that's gonna happen all the time??

 

[pokeraddict]

What I don't get is this:

When you hit a $1200 in a B&M in America you get a "Call Attendent" message up and the screen locks, and you have to do all the IRS forms. So how do high rollers cope with this? If someone is spinning $50/$100 or more a spin, surely that's gonna happen all the time??

Correct, they need to keep good records of their play so they can deduct losses. Also if you're playing somewhere that has a player's club they will collect win/loss information. The trouble is that unless you file as a pro you will get screwed because you will lose your standard deduction by writing off gambling losses. The only exception to that is if you already itemized deductions. Examples of this are giving lots to charities or carry a large mortgage on a home.

 

[SlotsWizard]

What I don't get is this:

When you hit a $1200 in a B&M in America you get a "Call Attendent" message up and the screen locks, and you have to do all the IRS forms. So how do high rollers cope with this? If someone is spinning $50/$100 or more a spin, surely that's gonna happen all the time??

I've always wondered that too. Or the people who play big-money blackjack - a $1200 bet that pushes would require a W2-G. Seems to me like that would take the fun out of it.

I think the high-rollers not only play in a "special area" but are probably given a little bit of leeway with the paperwork, probably by only filling it out at the end of their sessions or something. That's just my guess - if I ever reach that level I'll be sure to let ya know!

(Thanks for taking care of that poker spammer )

 

[pokeraddict]

Table games do not fall under the same rules as video poker, slots and keno. As long as you do not cross $10,000 in chips across the cage in a 24 hour period there is no IRS notification. Even then it is only a cash activity report, not a W2G.

 

[dealer wins]

Will these new thieving tax rules now affect non USA citizens? Im off to vegas in December and plan on hitting the big slot JP of course!!

I remember about 4 years ago one of our group hit a $5000 slot JP in Caesars Vegas, and because he was from the UK he was paid the whole $5k by the attendant.

Thanks

 

[lojo]

Will these new thieving tax rules now affect non USA citizens? Im off to vegas in December and plan on hitting the big slot JP of course!!

I remember about 4 years ago one of our group hit a $5000 slot JP in Caesars Vegas, and because he was from the UK he was paid the whole $5k by the attendant.

Thanks

There might be some paperwork you'll want to do in advance. If no one else chimes in with it in the next couple of days I can look it up for you.

 

[lukins82]

never won such a big amount to declare