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WangSanJose
WangSanJose
Joined: May 2, 2012
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December 11th, 2018 at 9:57:14 PM permalink
Any payout over $1200 is reported to the IRS.
Due to tax obligation, does video poker have worse payout than expected, especially if you play larger denomination?
Let's say you play $100 denomination Bonus Poker at Bellagio, any three of a kind($1500 payout) would trigger the W-2G...
That sounds ridiculous to me.

So when you see a 99.54% JoB, the TRUE return is actually always less than 99.54%. Am I right?
Every year, IRS takes a loss rebate from our winnings(and losses too).
RogerKint
RogerKint
Joined: Dec 5, 2011
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December 11th, 2018 at 10:03:39 PM permalink
You right, you right. Check with your tax professional about how, or if, you can minimalize income tax exposure due to gambling wins.
100% risk of ruin
WangSanJose
WangSanJose
Joined: May 2, 2012
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December 11th, 2018 at 10:49:28 PM permalink
This brings another question.
Is there a "Tax aversion" playing strategy that produces a higher TRUE return?


For example, you play 96 JoB, you're dealt 2, 5, 10, Q, A.
2,10, Q, A are suited.

Holding 10, Q, A, ER = 1.286772%
Holding 2, 10, Q, A, ER = 1.276596%

It might be possible that holding 2, 10, Q, A is a better move, since royal flush doesn't worth 800 units after tax, and the second best holding avoids the possibility of getting a royal flush.
Every year, IRS takes a loss rebate from our winnings(and losses too).
RogerKint
RogerKint
Joined: Dec 5, 2011
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December 11th, 2018 at 10:52:25 PM permalink
Error. Does. Not. Compute. All. Gambling. Wins. Must. Be. Reported.
100% risk of ruin
WangSanJose
WangSanJose
Joined: May 2, 2012
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December 11th, 2018 at 11:22:19 PM permalink
That's the rule, but it can't be enforced if no more than $1200 is paid.
IRS can't track all my three of a kinds. What can they do to me if I don't report my small wins.
Every year, IRS takes a loss rebate from our winnings(and losses too).
RogerKint
RogerKint
Joined: Dec 5, 2011
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Thanks for this post from:
kgb92
December 11th, 2018 at 11:49:57 PM permalink
Congrats, you've just been reported by Babs to the nearest IRS field office ;)

But, seriously, trolling the IR freaking S on a public forum may not be the wisest career move.
100% risk of ruin
MaxPen
MaxPen
Joined: Feb 4, 2015
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December 12th, 2018 at 12:26:24 AM permalink
Wrong thread
#FREENATHAN
AcesAndEights
AcesAndEights
Joined: Jan 5, 2012
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December 12th, 2018 at 5:41:54 AM permalink
As noted, all gambling winnings must be reported. Nothing special about video poker (or slots), other than there is some reporting done to the IRS for certain amounts. Other gambling wins, from table games or less than $1200 no machines, are liable to be found if you are audited. What are the chances of someone gambling and mostly breaking even/losing getting audited? Hell if I know, probably not much. Still, you should pay your taxes.

If you itemize deduction you can deduct gambling losses. If you have significant gambling wins, and losses, these facts alone may be enough to itemize (I have been in this situation in the past).
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
OnceDear
Administrator
OnceDear
Joined: Jun 1, 2014
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December 12th, 2018 at 8:07:38 AM permalink
Quote: RogerKint

Congrats, you've just been reported by Babs to the nearest IRS field office ;)

But, seriously, trolling the IR freaking S on a public forum may not be the wisest career move.

Declaring or not declaring tax on gambling winnings: You guys crack me up.

As others have said, just because the casino isn't handing you paperwork, you still have to declare every last dollar... Unless you surrender your US citizenship and emigrate. Don't you guys even have to declare winnings from anywhere in the world, E.g.. while on vacation to Europe?

Must be a real PITA to do anything like properly.
If you are enjoying the game, you're already winning.
SOOPOO
SOOPOO
Joined: Aug 8, 2010
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December 12th, 2018 at 8:33:32 AM permalink
OK boys and girls, now let's re-enter the real world. The next casual player who goes to the casino and turns their $200 buy in into $250 and reports that $50 to the IRS will be the first.

As for the OP's question about EV when taxes are figured in, then yes, there will be instances giving up a small +EV will be to your advantage.

If I remember correctly there were certain machines that would pay $1199 instead of $1200 and if you don't think that was done expressly for the purpose of not alerting the IRS via a form then I will have to send you to Nathan's Corner....

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