Nathan
Nathan
Joined: Sep 2, 2016
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September 25th, 2017 at 7:55:01 PM permalink
Let's say you get a handpay on a lucky spin and win like $2,000 get paod by an attendant and blow it all back into tight machines. Do you still have to pay taxes? I mean you didn't LEAVE with any money as you lost it right back. I am still confused on stuff like that.
Guy "won" less than his bet and the slot machine had the audacity to tell him he got a big win! SMH! The edit button is as good as gold! :D When in doubt, ask an Admin first! :D
DRich
DRich
Joined: Jul 6, 2012
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September 25th, 2017 at 8:09:46 PM permalink
Quote: Nathan

Let's say you get a handpay on a lucky spin and win like $2,000 get paod by an attendant and blow it all back into tight machines. Do you still have to pay taxes? I mean you didn't LEAVE with any money as you lost it right back. I am still confused on stuff like that.



You still have to claim the win but if you itemize you can write off the $2,000 loss against the win.
MichaelBluejay
MichaelBluejay
Joined: Sep 17, 2010
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September 25th, 2017 at 8:16:50 PM permalink
Nathan, the fact that you got a handpay is irrelevant. Whether you get a handpay or not, you add up all your session wins, and you pay taxes on that. There's a more detailed answer in my article about gambling taxes.
Last edited by: MichaelBluejay on Sep 25, 2017
billryan
billryan 
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September 25th, 2017 at 8:20:32 PM permalink
Quote: MichaelBluejay

Nathan, the fact that you got a handpay is irrelevant. Whether you get a handpay or not, you add up all your daily wins, and you pay taxes on that. There's a more detailed answer in my article about gambling taxes.



Wins and losses. Not just wins, although there are some states that tax you on wins, regardless of losses.
It's what you do and not what you say If you're not part of the future then get out of the way
MichaelBluejay
MichaelBluejay
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Thanks for this post from:
RS
September 25th, 2017 at 8:37:26 PM permalink
Quote: billryan

Wins and losses. Not just wins, although there are some states that tax you on wins, regardless of losses.

No, you don't pay taxes on your losses. You might be able to *deduct* your losses, but you certainly don't pay taxes on them.

The question posed requires an article-sized answer, which is why I referred the OP (and everyone else) to my article. There's no point in battling details in the forum.
Zcore13
Zcore13
Joined: Nov 30, 2009
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September 25th, 2017 at 9:02:24 PM permalink
Now to the real world answer. Nobody claims wins unless they are W2-G. If you report a hand pay to the IRS that did not receive a W2-G you might be the only one in the Country to do it.


ZCore13
I am an employee of a Casino. All the personal opinions I post are my own and do not represent the opinions of the Casino or Tribe that I work for.
MichaelBluejay
MichaelBluejay
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September 25th, 2017 at 9:16:10 PM permalink
Quote: Zcore13

Nobody claims wins unless they are W2-G.

If anyone reports W2-G wins they're almost certainly doing it wrong. You don't report W2-G's, you report the total of session wins. One year I received a fistful of W2-G's but didn't report any of them, because I had no session wins. Again, see the article.
Zcore13
Zcore13
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September 25th, 2017 at 9:55:47 PM permalink
Your article has incorrect information.

First, you can and do receive W2-G's on table game wins. Wins of $600 or more (after deducting the wager) and at least a 300-1 odds payout receive W2-G's. These happen on games like Lucky Ladies, High Card Flush and other games with high top end wins.

The IRS does not go by sessions anymore. They go by a calendar day (easily attainable) or the Casinos gaming day (not usually attainable). The W2-G instructions specifically say it is by the day and even define the term.


ZCore13
Last edited by: Zcore13 on Sep 25, 2017
I am an employee of a Casino. All the personal opinions I post are my own and do not represent the opinions of the Casino or Tribe that I work for.
billryan
billryan 
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September 25th, 2017 at 10:06:40 PM permalink
Quote: MichaelBluejay

No, you don't pay taxes on your losses. You might be able to *deduct* your losses, but you certainly don't pay taxes on them.

The question posed requires an article-sized answer, which is why I referred the OP (and everyone else) to my article. There's no point in battling details in the forum.



You said you add up your daily wins. That is not correct. You add up your daily wins and your daily losses. You only pay taxes on the difference between the two. If someone followed your advice, they would add up their wins and pay taxes only on that.
Its not that complicated.
It's what you do and not what you say If you're not part of the future then get out of the way
MichaelBluejay
MichaelBluejay
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September 25th, 2017 at 10:12:18 PM permalink
Quote: billryan

You said you add up your daily [actually session] wins. That is not correct. You add up your daily wins and your daily losses. You only pay taxes on the difference between the two.

You are 100% wrong on that. Read the article I referred you to. It's based on IRS documents and tax expert advice. As one of my expert sources says, "You may not, repeat NOT, subtract your losses from your winnings and only report the amount left over, if any. You're supposed to report every penny you win, even if your losses exceeded your winnings for the year."

There's also IRS Publication 529, which says, "You can't reduce your gambling winnings by your gambling losses and report the difference."

Again, all this is explained in my article, which includes official and expert sources.

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