Heads up Hold em win and taxes?
Quote: SoulChaserHypothetically speaking, if one were to have hit a Royal Flush on a cruise ship last month for $2500, would the cruise line have collected the information and issued the expected tax form that night, or would one have to wait until early next year to get the form in the mail?
A hypothetical call to the casino operator would likely produce a definitive answer.
The payout is 500 to 1, so taxes will be involved.
You are subject to tax for any gambling winnings. However table games players are basically on the honor system. An exception that a W-2G form is generated if a win is 300 (to) 1 or more odds and is over $600. That is usually only an issue with progressive jackpots. Also, if there is a cash transaction of $10,000 or over the casino is obligated to fill out a CTR, which stands for Cash Transaction Report. Yet these are nothing to worry about, and I think many big bettors are overly paranoid about them.
https://wizardofodds.com/ask-the-wizard/taxes/
Quote: CommishIn actual terms, as opposed to hypothetical, the win must be $5000 or more.
$600 or more for table games.
Quote: ChumpChangeIf it was a Texas Hold'em Poker Tourney and they won $2500, there'd be no taxes (unless they won $5000 or more). There's confusion about the actual game the OP referred to, or what it is imagined to be.
Heads Up Holdem is a table game. It is Galaxy's UTH knockoff.
One question: was the hypothetical royal payout 500-1 with a $5 bet or 250-1 with a $10 bet? I was on another cruise recently that had a HUH table in the casino, and I want to say that the payout for the royal was 250-1. Cruise casinos are not above shaving payouts to both fleece the players and keep them from having to deal with W-2G's.
Perhaps they do, as a condition of calling at US ports. But I wouldn't rely on them to file anything. IF they do, they would be required to get your signature on it, so you would know it was out there, whether they gave you a copy or not. IF they didn't give you a copy but you DID sign something, you'll probably have to track the W2g yourself and put a note in your tax files, probably do a substitute W2g form.
This is what I would have thought as well, but again, I have no direct knowledge.Quote: beachbumbabsPerhaps they do, as a condition of calling at US ports.
Although I got a hard copy of the W-2G on board, I was also able to contact the Carnival's casino operations and have them mail me another copy as I had misplaced my original.
Quote: beachbumbabsI'm not 100% sure casinos on cruise ships offer US tax accounting. They're only open while in international waters. Hardly any of them are American flag ships. Their passengers are from many countries.
Perhaps they do, as a condition of calling at US ports. But I wouldn't rely on them to file anything. IF they do, they would be required to get your signature on it, so you would know it was out there, whether they gave you a copy or not. IF they didn't give you a copy but you DID sign something, you'll probably have to track the W2g yourself and put a note in your tax files, probably do a substitute W2g form.
I know for sure that the largest cruise company that owns Carnival, Princess, Holland, Costa, and a few others follows U.S. IRS guidelines for American passengers. I know they also follow Dept of Treasury rules for CTR's and SAR's.
Had I taken the position they offered me that all would have fallen under my job responsibilities for all 104 ships.
Quote: CommishSo you only won $2500 at a table game, no W-2G required. I have never been on a ship that did not follow US rules of taxation.
Once again, I don't know where you're getting that $5000 is the threshold for a W2G. It's $600. Less than $5001 means that 24% does not need to be withheld, but the W2G is still required.
Source.
Quote: SoulChaserTo answer some of the questions was a 500-1 payout with a $5 bet, I signed nothing, They gave me nothing to sign... They did take my Sail and Sign card as well as my DL...which created a whole new set of issues (not gambling related) that I was able to clear up...I assume it to see if I owed back taxes, child support, etc.... they came back and counted out the chips and handed them to me. Nothing was said about a tax form... I have emailed the carnival players club and asked what would happen in that situation and am still waiting to hear back from them.
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I know it's been a while, but can I ask what carnival replied to your email? I hit a similar table game side bet on a cruise ship, which was 100% reportable. However, no one asked me for anything. They gave me the chips in 5 minutes and let me cash out. They did have my room key information (players card) though.
Quote: jren9718Quote: SoulChaserTo answer some of the questions was a 500-1 payout with a $5 bet, I signed nothing, They gave me nothing to sign... They did take my Sail and Sign card as well as my DL...which created a whole new set of issues (not gambling related) that I was able to clear up...I assume it to see if I owed back taxes, child support, etc.... they came back and counted out the chips and handed them to me. Nothing was said about a tax form... I have emailed the carnival players club and asked what would happen in that situation and am still waiting to hear back from them.
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I know it's been a while, but can I ask what carnival replied to your email? I hit a similar table game side bet on a cruise ship, which was 100% reportable. However, no one asked me for anything. They gave me the chips in 5 minutes and let me cash out. They did have my room key information (players card) though.
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The cruise ships are not required to report gambling wins. Most do because they don;t want to get on the bad side of the IRS. If you are a US citizen you are still required to report it on your taxes.
Quote: mtcardsAbout 10 years ago, I hit a straight flush on Caribbean Stud on a Carnival cruise. The dealer did not open, so I didnt get the payout for the bet, just the $5 for the ante and $5000 for the progressive bet, so total of $5005. They took out $1251 immediately and gave me a receipt for the money they took out and paid me the additional $3754 in chips. They later mailed me the W2G which I turned in with my taxes, minus any gambling losses I was able to claim to offset the win.
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That is great, that is how it should work. I wouldnt mind if they took 25% out of every jackpot and gave it back when filing.taxes. (Plus interest)
