Table game taxes
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Quote: IbeatyouracesIf so I am sure they would make you fill out a W-2 form as they do in here in Michigan.
they took out the tax and gave him a 1099
Quote: iamthepushthey took out the tax and gave him a 1099
I'm not sure what the rules are exactly, but I've noticed that I get W2Gs for wins at casinos (with slots present) and 1099s at card clubs and racetracks. Taxes are taken out of the 1099 winnings, but not the W2G winnings. It's a real pain in the ass to file the 1099 income, and I much prefer the W2G method because it more closely aligns with the area for claiming offsetting losses on tax forms.
Quote: iamthepushI have a friend that hit the bonus on lucky ladies, 400-1, won 10k. they took out the tax as they were paying him (at the table). Could paying the tax right then been avoided?
I highly doubt it can be avoided. Just be sure that he knows he can offset any gambling losses for the year against this win for tax purposes.
Quote: iamthepushI have a friend that hit the bonus on lucky ladies, 400-1, won 10k. they took out the tax as they were paying him (at the table). Could paying the tax right then been avoided?
No, any hit greater than 300-1 and above $600 requires reporting. The form was probably a W-2G rather than a 1099. They usually take state tax out automatically; you can get it refunded if you are not a citizen of that state and you file there.
Quote: iamthepushI have a friend that hit the bonus on lucky ladies, 400-1, won 10k. they took out the tax as they were paying him (at the table). Could paying the tax right then been avoided?
I think we're all overlooking the bigger point here. Let's talk about how your friend bet $25/hand on a side-bet with a house edge of 25%...:-P
Quote: rdw4potusI think we're all overlooking the bigger point here. Let's talk about how your friend bet $25/hand on a side-bet with a house edge of 25%...:-P
he was playing $1 bet and went through the whole deck (single) and no queens, last hand before dealer shuffle thus the $25.
Quote: teddysNo, any hit greater than 300-1 and above $600 requires reporting. The form was probably a W-2G rather than a 1099. They usually take state tax out automatically; you can get it refunded if you are not a citizen of that state and you file there.
I'm confused. Do you mean you can get state taxes refunded if you don't live in Nevada but file taxes in Nevada?
BTW, the term for one who lives in a given state is resident, not citizen.
Quote: NareedI'm confused. Do you mean you can get state taxes refunded if you don't live in Nevada but file taxes in Nevada?
I'm not entirely sure if it applies to gambling winnings. I know when I was on a game show in California, I was able to get the state tax on my winnings refunded by filing a Calif. tax return. I'll lay off that question for now.
Edit: Thanks to the person below for pointing out Nevada has no state income tax. Duh :I
Quote:BTW, the term for one who lives in a given state is resident, not citizen.
Thanks for the Mexican U.S. civics lesson, Nareed :) Might I refer you to Article III, Section 2 of the U.S. Constitution?
Teddys, Nareed -Quote: teddysThanks for the Mexican U.S. civics lesson, Nareed :) Might I refer you to Article III, Section 2 of the U.S. Constitution?
I think it's safe to say that if you ask the average reasonably intelligent American what the difference between a citizen and a resident is, part of the definition would be that we're citizens of the USA, but residents of one of the 50 states.
Even though we may not have gone thru the process, or even know someone who has, the average person will agree that the "citizenship process" applies to a foreigner who wants to become an American.
If, for example, a New Jerseyan wants to become a Nevadan, all he has to do is pick up his things and move. Other than sending out a bunch of Change Of Address forms and getting a new Driver's License, there's no special procedures.
But the constitution defines it differently? You learn something new every day.
Quote: teddysNo, any hit greater than 300-1 and above $600 requires reporting. The form was probably a W-2G rather than a 1099. They usually take state tax out automatically; you can get it refunded if you are not a citizen of that state and you file there.
The first part of that's not true. You are required to report ANY amount of winnings on each casino visit. For instance, if you played BJ or slots or roulette or made sports bets all day long and finished $+10 with or without W2G's or 1099's, you are legally required to report that $10 as gambling winnings. However, when W2G's or 1099's ARE involved, those are reported as income and the losses can be offset on Schedule A, thereby in this particular case netting a $10 win for the day.
Quote: teddysI'm not entirely sure if it applies to gambling winnings. I know when I was on a game show in California, I was able to get the state tax on my winnings refunded by filing a Calif. tax return. I'll lay off that question for now.
Thanks for the Mexican U.S. civics lesson, Nareed :) Might I refer you to Article III, Section 2 of the U.S. Constitution?
there are 973 results found for citizen on irs.gov and 1670 for resident, fwiw
Obama's the one who defines it differently. He wants anyone who desires to be an American "citizen" to simply march across our borders and start reaping the benefits. The poorer the better. That way he can give them all the free handouts they can grab onto so they'll vote for his party and him on every election.
Quote: DJTeddyBearTeddys, Nareed -Quote: teddysThanks for the Mexican U.S. civics lesson, Nareed :) Might I refer you to Article III, Section 2 of the U.S. Constitution?
I think it's safe to say that if you ask the average reasonably intelligent American what the difference between a citizen and a resident is, part of the definition would be that we're citizens of the USA, but residents of one of the 50 states.
Even though we may not have gone thru the process, or even know someone who has, the average person will agree that the "citizenship process" applies to a foreigner who wants to become an American.
If, for example, a New Jerseyan wants to become a Nevadan, all he has to do is pick up his things and move. Other than sending out a bunch of Change Of Address forms and getting a new Driver's License, there's no special procedures.
But the constitution defines it differently? You learn something new every day.
I really have no interest in what it's called. I was just busting Nareed's chops.
Resident is what most people call it. Citizen is more of the legal definition.
What state you live in matters more in the U.S. than any other country. It's a remnant of the colonial period when the states (then colonies) were for all intents and purposes separate countries. It really only comes into play in the legal and taxation arenas though.
A person is considered a citizen of the state in which they last resided and had intent to remain. So a kid from Pennsylvania going to school in Ohio would be a citizen of Pennsylvania, since he does not intend to remain in Ohio. This sort of thing matters for deciding which cases go to federal court and which to state court.
Quote: iamthepushhe was playing $1 bet and went through the whole deck (single) and no queens, last hand before dealer shuffle thus the $25.
Penetration? Where was this?
Quote: NareedI'm confused. Do you mean you can get state taxes refunded if you don't live in Nevada but file taxes in Nevada?
Paying state income tax in Nevada is for suckers :)
Oh.Quote: teddysI really have no interest in what it's called. I was just busting Nareed's chops.Quote: DJTeddyBearTeddys, Nareed -
I think it's safe to say that if you ask the average reasonably intelligent American what the difference between a citizen and a resident is, part of the definition would be that we're citizens of the USA, but residents of one of the 50 states.
...
But the constitution defines it differently? You learn something new every day.
Quote: SolidAUWhere was this?
IIRC, the flamingo. (wasn't there)
Quote: JerryLogan"But the constitution defines it differently? You learn something new every day."
Obama's the one who defines it differently. He wants anyone who desires to be an American "citizen" to simply march across our borders and start reaping the benefits. The poorer the better. That way he can give them all the free handouts they can grab onto so they'll vote for his party and him on every election.
No change from when the US citizens marched across other people's borders and made them American citizens. Or when the US welcomed any and all immigrants... you see thats the problem, America is viewed as a land of oppurtunity. Start being a bit more shitty.
To get back any withheld taxes, you have to fill out paperwork that basically claims you had other gambling losses that calendar year which exceed the win you were taxed on. Usually this is handled via agents, like these' rel='nofollow' target='_blank'>http://www.usgamblingrefund.com/]these guys. In the international terminal at the Las Vegas airport there is a big ad for another such service. At least there was when last I was there in July 2009.
Quote: WizardThis is getting out of my area, so don't take the following as the gospel truth. As was pointed out, federal taxes are automatically withheld for jackpots of odds of 300-1 or over and total more than $600 in table game wins. This also applies to sports and racing. In slots, the standard is a single gross win of $1200 or more, and the withholding is waived, except for really huge jackpots, for U.S. citizens and certain other countries. If the withholding is waived, you will still get a W2G form, and will be expected to pay taxes on a net gambling win at the end of the year.
To get back any withheld taxes, you have to fill out paperwork that basically claims you had other gambling losses that calendar year which exceed the win you were taxed on. Usually this is handled via agents, like these' rel='nofollow' target='_blank'>http://www.usgamblingrefund.com/]these guys. In the international terminal at the Las Vegas airport there is a big ad for another such service. At least there was when last I was there in July 2009.
I have won jackpots between $600-$4999 (Slots, Poker Tournament, Electronic Table Games, Horseracing with big odds), and I have never had money withheld. There are two factors at work here. At $600, you get a W2G or (where I've won usually) a 1099. While they generate this, they do not take anything out. At $5000, they still generate the form, but they also begin withholding. I should say this has happened to me at PA Casinos/Racetracks and NJ Casinos/Racetracks, but it's federal that they withhold so I don't think the state is extremely relevant.
Quote: teddysThere is a whole book on the subject.
The subject matter is like understanding your cell phone. All you have to do is WANT to understand it, ask the IRS or State Revenue Dept. a few simple questions relating to your area of confusion and/or look it up on-line, and you'll be the local expert. Buying a book that Jean Scott's involved with makes me uneasy, and I know I'll be sitting there wondering why I got roped into doing it later.
Quote: JerryLoganQuote: teddysThere is a whole book on the subject.
The subject matter is like understanding your cell phone. All you have to do is WANT to understand it, ask the IRS or State Revenue Dept. a few simple questions relating to your area of confusion and/or look it up on-line, and you'll be the local expert. Buying a book that Jean Scott's involved with makes me uneasy, and I know I'll be sitting there wondering why I got roped into doing it later.
The co-author is http://www.huntingtonpress.com/go/authors/marissa-chien-ea
Quote: matildaQuote: JerryLoganQuote: teddysThere is a whole book on the subject.
The subject matter is like understanding your cell phone. All you have to do is WANT to understand it, ask the IRS or State Revenue Dept. a few simple questions relating to your area of confusion and/or look it up on-line, and you'll be the local expert. Buying a book that Jean Scott's involved with makes me uneasy, and I know I'll be sitting there wondering why I got roped into doing it later.
The co-author is http://www.huntingtonpress.com/go/authors/marissa-chien-ea
That's right. And Joe Biden's also a good man. Too bad he's only half of the team that's spinning out of control with foolishness and inexperience.
Quote: JerryLoganI'm not seeing the confusion here because, well, I'm just not a confusing guy. Certain states take mandatory state taxes out of certain payouts. Federal taxes are withheld only if you ask the casino to do so.
This is not true. I had no choice but to have the Federal Taxes withheld when I hit a 5 figure Pick 6 in Horse Racing. You either provide your Social and they take out 28%, or you don't, but they still hold 28%.
Quote: cclub79This is not true. I had no choice but to have the Federal Taxes withheld when I hit a 5 figure Pick 6 in Horse Racing. You either provide your Social and they take out 28%, or you don't, but they still hold 28%.
Whether or not the Feds withholding is done is basically dependent on the people doing the payout. Technically, as long as a SSN is provided, the Fed doesn't care if the Fed Tax is withheld. They figure they can get it from you later on your taxes, which is why they want your SSN. Thus, if you don't provide an SSN, then the taxes are withheld. If you do provide the SSN, then you have the option of having the taxes withheld.
The real problem is where the blame lies when the SSN is incorrect and/or wrong. Unfortunately, the Feds then hold the paying institution to be at fault, and will come after them for the taxes. This mean that if a paying institution is at all concerned that your SSN may be incorrect, wrong, or fraudulent (such as not seeing a SS card along with a picture ID), then they may choose to withhold the Federal Tax as a safety valve for themselves. Unfortunately, this extends to the fact that some paying institutions will just make it company policy to withhold the Federal Tax no matter what.
Since the IRS only cares about getting their percent, they have no qualms about an institution performing a mandatory tax withholding if they so choose.
