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FCBLComish
FCBLComish
Joined: Apr 11, 2010
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December 28th, 2018 at 2:34:53 PM permalink
Quote: WangSanJose

Sorry for being inactive, I've been researching on this issue extensively. And still, I gathered more dumb questions to clear from my head.
Whether you're a tax expert, or only based on personal experience, any answer is welcomed and helpful!



Let me handle the ones I know about:

Quote:

9. Besides federal tax, people have to pay state tax on their income.
Let's say Peter is a California residence, he traveled to another state and won big. Does he pay California state tax or other state tax?
If he won big in California Indian casinos, does he pay California state tax?(or Indian tribal tax, if it exists?)


You will have to pay California State Tax in all those situations.

Quote:


11. I've never received a W2-G Form. From what I observed, when the player received the W2-G, the player's info are not hand-written but typed on the form. How does the whole process go? Does the slot attendant input(using iPad) the player's info infront of the machine after checking the player's DL and SSN?


Information is input into the computer, at a jackpot station, and printed up for the player. Unless you are talking about a very small operation, (like a California Card Room) where sometimes it is done by hand.
Quote:


12. Is the W2-G required to be issued to the person pressing the button?
If Peter and I went to the casino together, I play slot, he sits next to me watching me play. Suddenly, I hit a $1200+ prize. With Peter's permission, can we request the casino to issue the W2-G to Peter?


The person who pushes the button is the jackpot owner. All taxes are the responsibility of that person.

Quote:


13.
If Peter and I went to the casino together, I'm playing the slot with Peter's players card plugged in the machine, he sits next to me watching me play. Suddenly, I hit a $1200+ prize.
Do casinos dislike this kind of action?(I'm playing Peter's card, but he's next to me the whole time.)


Casinos don't like these situations. At one place where I worked, a big player hit a PROMOTIONAL jackpot with his wife's card inserted. They refused to pay him. If it were a regular jackpot, he would be on the hook for the taxes, regardless of whose card was inserted.

If you do not have proper ID and SS#, the jackpot will be awarded and then placed into safekeeping until the proper tax information is produced.


(Edited for formatting and readability. -bbb)
Last edited by: unnamed administrator on Dec 28, 2018
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billryan
billryan
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December 28th, 2018 at 3:12:09 PM permalink
In regards to #13, a well known video poker player with a radio show was playing with his wife's card when it was randomly selected for a big prize and after some hemming and a bit of hawing, he ended up getting paid.

I've seen payoffs go different ways. Was in AC when a friend hit for about $3,000 on a WOF and didn't have any id on him. They ended up letting a friend sign for it. Everyone I've talked to said they should not have, but they did.

I hit big at a dog track/casino and didn't have my wallet on me. They made me sign the back of the ticket and let me leave and return with my id.
WangSanJose
WangSanJose
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December 29th, 2018 at 7:15:05 PM permalink
Quote: FCBLComish


From what I've observed, the slot attendant checks the ID, the player's card, and ask for SSN before giving the jackpot in cash.
According to my friend at another casino, the slot attendant checks the ID, and ask for SSN, without checking the player's card.
When a jackpot is hit, do slot attendants know who's player's card is inserted, or the player didn't use a player's card before reaching the jackpot receiver?
Great
FCBLComish
FCBLComish
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December 29th, 2018 at 7:21:07 PM permalink
Quote: WangSanJose

When a jackpot is hit, do slot attendants know who's player's card is inserted, or the player didn't use a player's card before reaching the jackpot receiver?



Yes. They know what card was inserted when the jackpot occurred. They also can do that for any spin.
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darkoz
darkoz
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December 29th, 2018 at 8:47:35 PM permalink
Quote: WangSanJose

From what I've observed, the slot attendant checks the ID, the player's card, and ask for SSN before giving the jackpot in cash.
According to my friend at another casino, the slot attendant checks the ID, and ask for SSN, without checking the player's card.
When a jackpot is hit, do slot attendants know who's player's card is inserted, or the player didn't use a player's card before reaching the jackpot receiver?



They have the power to do it.

Whether they do or not is another story

Speaking from my knowledge of 5 different regions in the US I know of only one casino (literally one) that actually checks

I frequently use other people's cards and have won multiple jackpots with other cards inserted. Its usually not a problem. Just remove the card and dont mention it.

As for the casino where they do check I just remove the card and then when they asked if I used my card I state up front that I was playing unrated BUT some person had their card in the machine and just returned for it. I hadnt realized it was in the machine. That has never been a problem either
For Whom the bus tolls; The bus tolls for thee
BTLWI
BTLWI
Joined: Nov 6, 2013
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December 29th, 2018 at 10:48:17 PM permalink
Quote: 7craps

hopefully they stay away forever on that one and do not come back to you in another year wanting to see your records of losses adding up to $205,000. IF I was IRS, I would want to see your documents showing you lost $205,000 as most can not produce thatnot a very good assumption that IRS did understand it.

I have had 6 rounds over my lifetime with IRS and won them all.

They, each time, in writing, said they were right and I had to show proof I was right, making them wrong.
easy to do when you do have the proof as I did each time.
and they wanted the proof every time.
I am not a professional gambler according to the IRS rules and guidelines on that.

sounds like you fell into a crack
Enjoy the win!



I do this for a living. I have records.
sltploppy
sltploppy
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Thanks for this post from:
odiousgambitMichaelBluejaybeachbumbabs
January 3rd, 2019 at 2:01:06 AM permalink
I had made another reply however wanted to call out and thank MBJ for his article. I did some independent research and also looked at the resources cited in his article. The one thing that I learned is that Session Accounting (for those who have over 12k in W2G's for 2018 and live in the one of the "bad" states for gambling) can be a huge advantage for State Tax filing if your state recognizes it as legitimate (from my reserarch not every state has weighed in on the validity of Session Accounting for state income purposes). Fortunately the state I live in (Michigan) does recognize Session Accounting as valid for purposes of calculating your gambling wins for State Income Tax purposes (they published a Revenue Procedure a few years ago discussing their stance on the validity). The big advantage comes in the following manner:

Hypothetically, let's say I have 30 W2G's for 2018 that were collected over the course of 20 separate sessions throughout the year for a grand total of $48,500 and most importantly I was a net loser for the year. Using non-session accounting I would enter each of those W2G's into my tax preparation software individually, which would then total them up to place on line 21, and then I enter my itemized deduction to offset that total. Since I am in one of the bad states for gambling this means I have $48,500 in additional income subject to state tax (Michigan does not allow a casual gambler to deduct losses). That means I would owe approximately $2,061 more in state income tax for ultimately being a net loser for the year.

Now let's take a look at using Session Accounting:

Over the 20 separate sessions of play for 2018, I had 5 winning sessions that totaled $16,000 and 15 sessions that resulted in a total loss of $20,000 (down 4k for the year). For State income tax purposes that means I have $16,000 (still cannot deduct my losing sessions) of additional income subject to state tax for a liability of approximately $680.

Using session accounting results in a net state income tax savings of $1,381. Overall there is no real change in my federal results (I do get dinged because if not for the gambling results I would not have itemized deductions) but the change in the state income tax results are material.

Everyone will have to make a determination of whether the possible flagging by the IRS is worth it but another possible benefit of session accounting can definitely be with your state income taxes.
Keyser
Keyser
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January 3rd, 2019 at 9:39:17 AM permalink
Quote: Wizard

Thanks! Until I do, MichaelBluejay's page is a good source on how taxes are supposed to be done. However, almost nobody follows the "session" method that you're supposed to and I'd like to address how to file if you want to keep the IRS happy and not get an audit.



Do you by chance have a link to his tax page?

Thanks! :)
Keyser
Keyser
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January 3rd, 2019 at 12:30:01 PM permalink
Found it. https://easy.vegas/gambling/taxes
Last edited by: unnamed administrator on Sep 10, 2019
denstarr
denstarr
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January 26th, 2019 at 9:37:20 AM permalink
Been in Vegas myself since 1991, and I've seen people do this. Not often, but I've seen it at least a half dozen times over the years.

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