W-2G question

I started gambling last year, so this is the first year I'm dealing with the W-2G issue. I've won some money (a few hundred dollars) on table game promotions where I've filled out the W-2G information. Do casinos mail the W-2Gs to me or do I have to request them from the casinos?

You'd only have to fill out a w2-G if you won over $600. Normally you would get a copy right when you sign the form

If a casino doesn't give you the "official" W2G at the time of the jackpot win, they will give you a form indicating that you will be getting one. This form is something that will probably show your social security number and signature indicating that you have acknoledged the jackpot.

Don't forget to offset your wins with your losses, and the tax law says to declare all wins including those without a W2G. And yes, smaller wins are also elibible for the offset by losses.

I see. I'll see if I get anything in the mail. Nothing's been more than $350 at a time so far, but I have filled out forms for them.

I don't itemize, so can't really offset with losses yet.

Thanks for the info.

Has something changed recently? I have never received a w2g for a table game win. I have received them for slot machine wins and keno wins, but never for table games. I have always received 1099's for tournaments wins.

Last I knew at a casino I went to- ans this was not information they just give away- they told me they dont worry about making you do a tax form on 'table winnings' unless you cash out over 5,000 at the cashiers cage at once. Since its not realistic to do it between each and every table they just do it at the cashier window when its over a said amount. the slots work differently as they are easily tracked. I used to get a yearly win/loss statement from all the money I won or lost on slots for the year. When I won 20,000 from lottery they gave me my tax form right there along with the 15,000 check (and 5,000 kept for taxes).

Cashing out any amount does not mean that amount was won at a table. A CTR would be generated on a $10,000 cash transaction or more but that has nothing to do with taxes and is done win, lose or draw. There are strict guidelines for table game side bets as well as slots.

Quote: DRich

Has something changed recently? I have never received a w2g for a table game win. I have received them for slot machine wins and keno wins, but never for table games. I have always received 1099's for tournaments wins.

The only bet in craps that could cause you to get a w-2g is the fire bet. The law is you would have to win a one time only bet that paid over 300-1 odds and paid you over $600. So the only possible way to do this on craps is the fire bet. so in blackjack it is the same thing. You'd never get a w-2g unless you hit the lucky ladies jackpot (as an example) or any other sidebe jackpot that paid over 300-1 odds

Link with info
http://casinogambling.about.com/od/casinos101/a/Taxable-Jackpots.htm

Couple of caveats on taxes:

1. Be careful of Electronic Blackjack, Roulette, Craps. Most casinos treat them the same way they do slots. I had a big bet up on a Shufflemaster ($250?), split and doubled, and because it paid over $1200 (including the original bets), the game waited for a handpay. Even though it was only a net win of $750 and even money bets, there was the W2G. If you parlay a Hardway or something similar, probably the same thing. Obviously I'd rather play on real tables, but many in the USA don't have that option.

2. You must itemize your deductions to take advantage of the losses offsetting wins. This is problematic for some people who do much better with the Standard Deduction every year (especially younger people without a lot of medical bills, don't own a home, etc), and there's no real way around it.

Wow that sucks you got taxed on the hand pay.

Quote: cclub79

2. You must itemize your deductions to take advantage of the losses offsetting wins. This is problematic for some people who do much better with the Standard Deduction every year (especially younger people without a lot of medical bills, don't own a home, etc), and there's no real way around it.

This is my big problem with the existing tax laws around gambling. You can't see it but I'm currently giving the IRS the middle finger.

Quote: debitncredit

I started gambling last year, so this is the first year I'm dealing with the W-2G issue. I've won some money (a few hundred dollars) on table game promotions where I've filled out the W-2G information. Do casinos mail the W-2Gs to me or do I have to request them from the casinos?

I would guess that since this was a promotional thing, that is why they had you fill out information for a W-2G. They are supposed to mail you a copy of the W-2G, but it's important to remember that the filing of the taxes is still considered your responsibility. The information on the W-2G is transmitted electronically to the IRS, so if your W-2G got lost in the mail, and you file your taxes without including it, your tax filing will be rejected for being incomplete. Just something to keep in mind.

Also, as a side note, people seem to be hung up on the $600 number, as though tax forms will not or should not be completed unless the winnings exceed this threshold. That isn't true. If you read the instructions for filling out the W-2G

Quote:

Report gambling winnings on Form W-2G if:
1. The winnings (not reduced by the wager) are $1,200 or
more from a bingo game or slot machine,
2. The winnings (reduced by the wager) are $1,500 or more
from a keno game,
3. The winnings (reduced by the wager or buy-in) are more
than $5,000 from a poker tournament,
4. The winnings (except winnings from bingo, slot machines,
keno, and poker tournaments) reduced, at the option of the
payer, by the wager are:
a. $600 or more, and
b. At least 300 times the amount of the wager, or
5. The winnings are subject to federal income tax
withholding (either regular gambling withholding or backup
withholding).

#5 is, by design, a catch all. Especially since almost all income of any kind if subject to federal income tax withholding. Those casinos wishing to "protect" themselves, may issue a W-2G for any amount, even under $600. Obviously, the paperwork and time involved is not usually going to be worth it to the casino. However, in the OPs case of a promotional event, where any amount won is clearly pure profit on the winner's part, a casino may decide to CYA by issuing W-2Gs.