My question is as follows: I have heard conflicting reports as to whether this law has changed and whether properties are now actually, legally required to withhold in the case of a table game progressive being won. Does anyone know if the law has changed? If yes, when it changed and/or can link to the code specifying that money must, by law, be withheld?
I am still under the impression that it is my money and my choice. Does anyone know if I am correct/incorrect?
Thanks in advance for all responses/assistance.
There are four categories of wagers listed. Other than bingo/keno/slots, all require withholding for prizes of $5000 or more, sometimes with the caveat of 300x the wager. I don't think a table games progressive qualifies as a slot machine, so it probably falls under "other wagering transactions" for which the withholding rules are:
Quote:Withholding
You must withhold federal income tax from the winnings if the
winnings minus the wager exceed $5,000 and the winnings are
at least 300 times the wager. Withhold 25% of the proceeds (the
winnings minus the wager). This is regular gambling withholding.
If the winner of reportable gambling winnings does not
provide a TIN, you must backup withhold at the rate of 28% on
any such winnings that are not subject to 25% regular gambling
withholding. That is, backup withholding applies if the winnings
are at least $600 but not more than $5,000 and are at least 300
times the wager. Figure backup withholding on the amount of the
winnings reduced, at the option of the payer, by the amount
wagered.
Quote: AxiomOfChoiceI've never had anything withheld, as recently as a few months ago. My understanding is that if you provide ID and a social they do not need to withhold anything.
Can you confirm that your wager met the following criteria:
1. 300-1 odds
2. $5,000.00+ - original wager
3. Table game progressive
I appreciate you taking the time to respond. Thank you.
Quote: MathExtremisthttp://www.irs.gov/pub/irs-pdf/iw2g.pdf
There are four categories of wagers listed. Other than bingo/keno/slots, all require withholding for prizes of $5000 or more, sometimes with the caveat of 300x the wager. I don't think a table games progressive qualifies as a slot machine, so it probably falls under "other wagering transactions" for which the withholding rules are:
I appreciate you linking to the W2-G. Are you (or anyone else reading this) familiar enough with the form to know what may have been added in the last several years? Im more curious about the changes in the form from 2010 to present that may make it taxable where it wasnt previously. Is it a qualification on the 'other wagering transactions' or was there no 'other wagering transaction' category?
Thank you again.
Quote: TupeloProCan you confirm that your wager met the following criteria:
1. 300-1 odds
2. $5,000.00+ - original wager
3. Table game progressive
I appreciate you taking the time to respond. Thank you.
In light of MathExtremist's recent post, I'm pretty sure I'm wrong about this. My wager did not meet those criteria.