ukaserex
ukaserex
Joined: Jul 12, 2015
  • Threads: 21
  • Posts: 262
July 12th, 2015 at 11:42:35 AM permalink
Not sure I get what you mean by "no affect on taxes". The casino, providing a w-2g, will by law forward that to the IRS. So, I'm pretty sure my tax liability will increase. (assuming I claim it - and by law, I should.)


I'd thought about having the fed taxes withheld. For now - I think I'm going to take 25% of the earnings and put it in a 6 month CD. A tiny bit of interest is better than letting the feds hold onto it all that time with no return.

So essentially, I have nothing to worry about other than slightly more money in taxes, offset by the jackpot. I'm still about 7k to the good after taxes.
"Those who have no idea what they are doing, genuinely have no idea that they don't know what they are doing." - John Cleese
AxelWolf
AxelWolf
Joined: Oct 10, 2012
  • Threads: 148
  • Posts: 18652
July 12th, 2015 at 11:47:55 AM permalink
Uk. I cant add anything that hasn't been said.

-----------------------------------

"as I try to convince myself I can somehow predict future success. (The old "This machine must pay out sooner or later" philosophy. Stupid, but convincing enough at times)"

This was brilliantly written IMO. It captured many VP playes and other gambler's thought process.
♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
Ibeatyouraces
Ibeatyouraces
Joined: Jan 12, 2010
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July 12th, 2015 at 12:22:37 PM permalink
Quote: ukaserex

Not sure I get what you mean by "no affect on taxes". The casino, providing a w-2g, will by law forward that to the IRS. So, I'm pretty sure my tax liability will increase. (assuming I claim it - and by law, I should.)


I'd thought about having the fed taxes withheld. For now - I think I'm going to take 25% of the earnings and put it in a 6 month CD. A tiny bit of interest is better than letting the feds hold onto it all that time with no return.

So essentially, I have nothing to worry about other than slightly more money in taxes, offset by the jackpot. I'm still about 7k to the good after taxes.


Of course you'll owe taxes on it. No different if you earned it at work.
DUHHIIIIIIIII HEARD THAT!
beachbumbabs
Administrator
beachbumbabs
Joined: May 21, 2013
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July 12th, 2015 at 3:04:52 PM permalink
You should not be afraid of an increased tax liability. Your whole earnings don't go up a percentage, it's ramped up with breaks that are usually a little different every year, based on CPI and other factors. But the 15%, if that was going to be sufficient to cover your retired indebtedness, will still be sufficient for this year. Only that portion of what you won (likely not all of it, but they haven't published the breaks, probably won't til mid-January) that puts you into a higher tax bracket will be taxed at that higher rate. That's already calculated into the tax tables before you look up your indebtedness on a single line by AGI.

I think your plan for the CD is a good one, except you can afford to get a 9 month one if you can find it for perhaps a better rate. July 15-Apr 15 is 9 months.

Edit: you would be foolish not to file it with the w2g accounted for. I think that's one of the 3 best ways to ensure yourself an IRS problem, because the casino is sure-by-God going to file it, and you have to match up with it. They do check those. It may take a while. But they'll be on it.
If the House lost every hand, they wouldn't deal the game.

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