BV3273
BV3273
Joined: Jan 31, 2019
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  • Posts: 27
January 31st, 2019 at 4:57:07 PM permalink
I will keep you all updated.

Based on what I have found while reading about gambling wins in NJ the IRS only requires the casinos to report wins over $1,200 on slots and ​video poker machines or other games such as keno, lottery or horse racing. No mention of online gaming at all. When you have a win equal to or greater than $1200, you are issued a W-2G form. This form lists your name, address and Social Security number. The casinos are not required to take out withholding tax on jackpots under $5,000 as long you supply your Social Security number. If you donít provide your Social Security number, the casinos withhold 28 percent on small jackpots. You can request a specific amount of withholding tax to be taken out of any jackpot you win. Some players like to do this to avoid a big tax payment in April when they file their income tax returns. The additional withholding may not be necessary if you keep a log book. The law allows you to deduct gambling losses up to the amount of your winnings. You can only do this if you have documentation of your losses. Keeping a diary or log book is the way to do this.

My logbook shows that I lost more than this amount on the W2G.
BV3273
BV3273
Joined: Jan 31, 2019
  • Threads: 1
  • Posts: 27
January 31st, 2019 at 4:58:41 PM permalink
I will never play online again.
Nathan
Nathan
Joined: Sep 2, 2016
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January 31st, 2019 at 5:02:00 PM permalink
I'm pretty sure you could honestly claim that you LOST that money , and you played/lost it all in games and didn't cash it out. I think you'll have to pay not nearly as much in taxes, but I'm not sure.
In both The Hunger Games and in gambling, may the odds be ever in your favor. :D "Man Babes" #AxelFabulous "Olive oil is processed but it only has one ingredient, olive oil."-Even Bob, March 27/28th. :D The 2 year war is over! Woo-hoo! :D I sometimes speak in metaphors. ;) Remember this. ;) Crack the code. :D 8.9.13.25.14.1.13.5.9.19.14.1.20.8.1.14! :D "For about the 4096th time, let me offer a radical idea to those of you who don't like Nathan -- block her and don't visit Nathan's Corner. What is so complicated about it?" Wizard, August 21st. :D
ChumpChange
ChumpChange
Joined: Jun 15, 2018
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January 31st, 2019 at 6:15:48 PM permalink
You could win $318,000 by April 15th, or the taxable portion of that, times 2.
jackmagic777
jackmagic777
Joined: Jan 11, 2019
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  • Posts: 161
January 31st, 2019 at 8:28:23 PM permalink
The old standard "You can always deduct your losses " seldom applies now. As the Wiz stated the $24,000 standard deduction changes all that, And 318K on your AGI Wow. That affects Earned Income Credit, Child Tax Credit,Dependent Child Care, American Opportunity Credit, Adaption Credit, etc. Plus ability to get student loans for you or kids, also AGI used to set your repayment monthly amount for your own student loans.
MaxPen
MaxPen
Joined: Feb 4, 2015
  • Threads: 13
  • Posts: 3598
January 31st, 2019 at 8:35:15 PM permalink
Quote: jackmagic777

The old standard "You can always deduct your losses " seldom applies now. As the Wiz stated the $24,000 standard deduction changes all that, And 318K on your AGI Wow. That affects Earned Income Credit, Child Tax Credit,Dependent Child Care, American Opportunity Credit, Adaption Credit, etc. Plus ability to get student loans for you or kids, also AGI used to set your repayment monthly amount for your own student loans.



Not to mention the cost of explaining/defending from his state of New York. What a mess.
jackmagic777
jackmagic777
Joined: Jan 11, 2019
  • Threads: 1
  • Posts: 161
January 31st, 2019 at 8:38:54 PM permalink
I know that in Massachusetts you can win $10,000 on a lottery tickets, claim 10,00 in other gambling losses on your Federal 1040, but Massachusetts will not allow you that deduction. They will however allow you to deduct the cost of any winning lottery or chance ticket. How generous.
Anybody know how many states do likewise ?
Minty
Minty
Joined: Jan 23, 2015
  • Threads: 5
  • Posts: 341
January 31st, 2019 at 10:46:15 PM permalink
This is just such a depressing thread. Here's to hoping a silver lining is found.
"Favorable bets are called 'investments.' Unfavorable bets constitute 'gambling.' -William Poundstone quoting John Kelly Jr. in Fortune's Formula
Nathan
Nathan
Joined: Sep 2, 2016
  • Threads: 65
  • Posts: 3430
February 1st, 2019 at 3:34:11 AM permalink
Quote: jackmagic777

The old standard "You can always deduct your losses " seldom applies now. As the Wiz stated the $24,000 standard deduction changes all that, And 318K on your AGI Wow. That affects Earned Income Credit, Child Tax Credit,Dependent Child Care, American Opportunity Credit, Adaption Credit, etc. Plus ability to get student loans for you or kids, also AGI used to set your repayment monthly amount for your own student loans.



Really creepy and disturbing that money you ended up losing anyways could effect your ability to get loans for yourself or your family Members and get Tax Credit and all that other stuff. In that case I could see a Gambler wishing he never won that huge Jackpot. :/
In both The Hunger Games and in gambling, may the odds be ever in your favor. :D "Man Babes" #AxelFabulous "Olive oil is processed but it only has one ingredient, olive oil."-Even Bob, March 27/28th. :D The 2 year war is over! Woo-hoo! :D I sometimes speak in metaphors. ;) Remember this. ;) Crack the code. :D 8.9.13.25.14.1.13.5.9.19.14.1.20.8.1.14! :D "For about the 4096th time, let me offer a radical idea to those of you who don't like Nathan -- block her and don't visit Nathan's Corner. What is so complicated about it?" Wizard, August 21st. :D
Hullabaloo
Hullabaloo
Joined: Nov 30, 2014
  • Threads: 12
  • Posts: 355
Thanks for this post from:
OnceDearHunterhill
February 1st, 2019 at 4:50:17 AM permalink
Quote: Nathan

I'm pretty sure you could honestly claim that you LOST that money , and you played/lost it all in games and didn't cash it out. I think you'll have to pay not nearly as much in taxes, but I'm not sure.



And just WHAT are you basing your opinion on? Have you read through the IRS rules on W2G's? Have you consulted with a tax professional? Have you read any or all of the publications on gambling tax rules? Have you actually needed to file a return that had W2G's so you are personally aware of the procedure?

If you need to end your post with "but I'm not sure" then why are you even posting?

You do this quite frequently, posting about something you seemingly know nothing about. Why? Not only does it not help anyone, but if someone was to follow your "sage advice" they could find themselves in an even worse situation.

Quote:

Better to remain silent and be thought a fool than to speak and to remove all doubt.
ó ABRAHAM LINCOLN.


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