itsmejeff
itsmejeff
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tringlomane
May 16th, 2019 at 1:20:59 PM permalink
Quote: ChumpChange

The NYS racinos have video lottery terminals (slot machine networks), and I haven't hung around to win anything there, but there might be a $600 tax form to fill out instead of the $1200 at non-racinos.

For lottery games in NY state, which includes VLTs, the threshold is a win of $600 or more that is also at least 300 times the amount wagered. A $600 win may or may not be reported to IRS. It depends on what amount was wagered to win it. If you go to a "racino" and win $750 on a hand of $5 fake video poker, you get a nonplayable only-cash-at-cage ticket, but you are not reported for purposes of income tax. The same win on a $1 game would be reported to IRS though. If you play a game like "88 Fortunes" at $8.80 max bet, you need to win $2640 to trigger tax reporting. Again, wins over $600 will be paid either as a ticket or handpay.
Last edited by: itsmejeff on May 16, 2019
FCBLComish
FCBLComish
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May 16th, 2019 at 3:45:42 PM permalink
Quote: itsmejeff

For lottery games in NY state, which includes VLTs, the threshold is a win of $600 or more that is also at least 300 times the amount wagered. A $600 win may or may not be reported to IRS. It depends on what amount was wagered to win it. If you go to a "racino" and win $750 on a hand of $5 fake video poker, you get a nonplayable only-cash-at-cage ticket, but you are not reported for purposes of income tax. The same win on a $1 game would be reported to IRS though. If you play a game like "88 Fortunes" at $8.80 max bet, you need to win $2640 to trigger tax reporting. Again, wins over $600 will be paid either as a ticket or handpay.



I disagree. Regardless of the amount wagered, a payout of $1200 or more will generate a W2g. This is a federal rule, and does not matter if it is Class III, or Class II (fake video poker). Where does $2640 come from?
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RS
RS
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May 16th, 2019 at 4:12:07 PM permalink
$2,640/$8.80 = 300
TomG
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AxelWolf
May 16th, 2019 at 4:32:53 PM permalink
Quote: darkoz

Quote: DRich

Also the IRS, and the general population will be collecting less tax money. 99% of the population will not report their wins under $5000.

You are not taking into account that 99% of the population will give it all back.



It shouldn't even matter whether they give it back or not. Playing these games in itself is a tax. To tax winning jackpots is double taxation.
FCBLComish
FCBLComish
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May 16th, 2019 at 4:33:48 PM permalink
Quote: RS

$2,640/$8.80 = 300



The math is correct, but the law does not work that way. The correct answer is that on any slot jackpot, it does not have to be 300:1 in order to trigger a W2g.

Play a $100 slot machine, hit 3 bars, and your $1200 payout triggers the W2g. I watched people do this, and I was completely befuddled as to why they would so something like that. Many casinos have jackpots capped at $1199 to avoid the reporting requirement.

Again, this is Federal law.
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FCBLComish
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May 16th, 2019 at 4:34:31 PM permalink
Quote: TomG

It shouldn't even matter whether they give it back or not. Playing these games in itself is a tax. To tax winning jackpots is double taxation.



I agree 100% that the way gambling winnings are taxed is crazy. Having said that, the law is the law.
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itsmejeff
itsmejeff
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May 16th, 2019 at 5:48:20 PM permalink
The lottery system is the best system. Basing reporting on a multiple of amount wagered is easy with computerized games and play monitoring systems. They could even put an upper limit on it. $1200 and 300 times wager for wins less than or equal to $9999.99 and all wins reported for $10,000 and greater (sorry, $5000 denom slot players)..
Quote: FCBLComish

The math is correct, but the law does not work that way. The correct answer is that on any slot jackpot, it does not have to be 300:1 in order to trigger a W2g.

Play a $100 slot machine, hit 3 bars, and your $1200 payout triggers the W2g. I watched people do this, and I was completely befuddled as to why they would so something like that. Many casinos have jackpots capped at $1199 to avoid the reporting requirement.

Again, this is Federal law.

The law does work that way. VLTs are lottery tickets, not slot machines. They give off the appearance of a slot game, but they are not slot games. NY VLTs get the "ticket" from Schenectady, where the lottery lives. The law considers any winnings lottery winnings. This is how scratchers work too. A $3000 win on a $30 scratcher needs to be collected at lottery facility, but no W-2G.

If you go to Finger Lakes, which is VLTs, and win $1234 on max bet game of "88 Fortunes", you do not get a W-2G. If you go to Tioga, which is an actual casino, you will get W-2G on same win. The $5000 withholding threshold does apply. $1200 W-2G does not. At $600, they check you for back taxes and unpaid child support, which is why you have to go to cage. You get a W-2G at $600 only if wager was $2.00 or less.
Quote: Publication 140-W

16 Q: Does New York State report the amount of lottery prize to the Internal Revenue Service?

A: Yes. The New York State Lottery is required to report all prizes where the proceeds from thewager are greater than $600 and at least 300 times the amount of the wager. A federal Form W-2G, Certain Gambling Winnings, will be issued to you reporting the total prize payment. In addition, Form W-2G will also show the amount, if any, of federal, New York State, New York City, and Yonkers income tax withheld.

Last edited by: itsmejeff on May 16, 2019
darkoz
darkoz 
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May 16th, 2019 at 7:08:32 PM permalink
Quote: FCBLComish

The math is correct, but the law does not work that way. The correct answer is that on any slot jackpot, it does not have to be 300:1 in order to trigger a W2g.

Play a $100 slot machine, hit 3 bars, and your $1200 payout triggers the W2g. I watched people do this, and I was completely befuddled as to why they would so something like that. Many casinos have jackpots capped at $1199 to avoid the reporting requirement.

Again, this is Federal law.



Itsmejeff is correct.

Federal law for slots does not apply to lottery tickets which is VLTs

I am witness to that living in NYS

Also, any jackpot over $5000 (I dont believe it matters about the 300:1 win) is not only taxable but MUST have state and federal taxes removed at the top tax bracket. Again something that is not the case for regular slots where you can collect every penny and pay the taxes end of year

Different rules. The word casino is on the building facade but VLT is the real name :)
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Deucekies
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May 17th, 2019 at 6:34:30 AM permalink
Quote: FCBLComish

I disagree. Regardless of the amount wagered, a payout of $1200 or more will generate a W2g. This is a federal rule, and does not matter if it is Class III, or Class II (fake video poker).



A $100 bet getting paid 12:1 would not get a W2G.
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darkoz
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May 17th, 2019 at 7:38:59 AM permalink
Quote: Deucekies

A $100 bet getting paid 12:1 would not get a W2G.



In Atlantic city it does.

In NYS racinos it does not
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