ChumpChange
ChumpChange 
Joined: Jun 15, 2018
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December 1st, 2019 at 7:41:51 PM permalink
Maybe you need to cash out from a table every time you go from $250 to $1175.
jren9718
jren9718
Joined: Dec 1, 2019
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December 1st, 2019 at 7:59:31 PM permalink
Maybe my description is confusing.

If I bet $25, won, then bet $25, lost. Repeat 100 times in this pattern, I only have $25.

But NJ online casino will say you won 50 times, with a cumulative winning of $1250, and a W2G is generated.

I'm not sure if this is true.
ChumpChange
ChumpChange 
Joined: Jun 15, 2018
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December 1st, 2019 at 11:02:56 PM permalink
Try it and find out. There was a tax thread here a year ago about online BJ, maybe not NJ, where every bet hand that won including splits & double downs that totaled over $1200 was taxed. Probably wouldn't want to bet more than $125 a hand if you plan on doubling down on 4 splits.

If NJ is counting every win in a session towards a tax form, I'd just give up unless I was betting $3 and keeping track of all wins.

BTW, most digital BJ games I see deduct your bet from your balance, then when you win, it says you won double what your bet was. So if you bet $500 and win $500, that would be a $1,000 win but not taxable; if you get a blackjack, you'd win $750 + your $500 bet for a total of $1250, which could be taxable. There should be no tax forms in BJ, but online it gets treated like it was a slot machine.
FatGeezus
FatGeezus
Joined: Jun 12, 2010
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December 2nd, 2019 at 7:17:39 AM permalink
Quote: jren9718

Maybe my description is confusing.

If I bet $25, won, then bet $25, lost. Repeat 100 times in this pattern, I only have $25.

But NJ online casino will say you won 50 times, with a cumulative winning of $1250, and a W2G is generated.

I'm not sure if this is true.



This can't be true.

Think about this---If you bet $25 on a slot machine and the payout was $15, did you lose $10 or win $15?

If you bet $25 on a slot machine and the payout was $40, did you win $40 or did you win $15?

Can you imagine the amount of W2Gs that would be generated by the on line slot players if this were true.
jren9718
jren9718
Joined: Dec 1, 2019
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December 2nd, 2019 at 7:22:01 AM permalink
I wish this is not true. Many people receive 500+ W2Gs from NJ online casino.
jren9718
jren9718
Joined: Dec 1, 2019
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December 3rd, 2019 at 9:58:20 AM permalink
Update: Borgata told me today that the $1200 limit is per bet, not cumulatively. Sorry for any confusion I made.
BV3273
BV3273
Joined: Jan 31, 2019
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Thanks for this post from:
MichaelBluejayjren9718GandlerAcesAndEights
January 18th, 2020 at 9:43:49 AM permalink
Alrighty. Itís been a while since Iíve given an update and here goes.

After filing an amended return along with all the session documentation showing the large net loss (negating the amount that they believed I owed on these ďwinningsĒ) and it being received by the IRS in March 2019 the book is almost closed on this chapter. When the amended 2019 was received it sat in a queue for over 3 months; mainly because of the dollar amounts involved. It was then given to a live agent to review. That agent deferred the case to another agent who I have spoken with several times over that last few weeks along with my accountant. The agent stated that the session method makes sense to him and this situation. He is reviewing the documentation and will be issuing the refund I expected within the next 30 days.

This whole thing has taken about 10 months to sort out. Kind of crazy, but Iím fine with it because they admitted that everything was done correctly.

My overall take is that the online gaming situation in this country is a new frontier and because of it there is a step learning curve when it comes to taxation.

If this post can save just one person who finds themselves in a similar situation a night of sleep Iíll be happy.

All the best,
BV
Solas
Solas
Joined: Jun 15, 2020
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June 15th, 2020 at 5:09:30 AM permalink
Hey there! What do you think about crypto wallets linked to a bank card? As far as i understand tax authorities don't know who conducts transactions with cryptocurrencies, to what extent and what is the profit. I use blackcatcard for gambling and after exchange my win to crypto. Do you think it is a good way not to come under the radars?
Commish
Commish
Joined: Jan 5, 2013
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June 15th, 2020 at 5:17:26 AM permalink
It very well could work. Just be aware that it is illegal and you could be guilty of not declaring income.

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