Stupid question about casino winnings...
#1
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Stupid question about casino winnings...
I just had a really random question about gambling.
Let's say you go to a casino and blow 5000.00. On your last pull you hit the jackpot and win 5000.00.
You are even. Yay!
Do you have to pay tax on that 5000.00?
Is it possible for a casino to sell you a credit (or maybe there is another term) and under this scenario you would NOT be winning, but even and owe no taxes?
It's probably obvious that I have never gambled, nor do I plan to... but I am still curious.
Let's say you go to a casino and blow 5000.00. On your last pull you hit the jackpot and win 5000.00.
You are even. Yay!
Do you have to pay tax on that 5000.00?
Is it possible for a casino to sell you a credit (or maybe there is another term) and under this scenario you would NOT be winning, but even and owe no taxes?
It's probably obvious that I have never gambled, nor do I plan to... but I am still curious.
#4
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So do any Casinos use a credit system where the amount is debited and added to and the result is in the end?
Seems that would be a good way to do it.
Do casinos ever deduct tax from winnings at the time of pay out?
I suppose they have to get your SS#?
Seems that would be a good way to do it.
Do casinos ever deduct tax from winnings at the time of pay out?
I suppose they have to get your SS#?
#5
The one time I hit a $1000 jackpot, they wanted my SSN before paying out. This was before the introduction of slot cards, so there would have been no way to prove my earlier losses.
Now, if you were using the casino slot card, you might be able to justify the balance of your win/ losses if the casino gave you a printout of your earlier losses.
Now, if you were using the casino slot card, you might be able to justify the balance of your win/ losses if the casino gave you a printout of your earlier losses.
#6
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I believe they give you a 1099 for anything over $1,100. The amount may have changed but it is right around that level. And then you do the proper tax return justifications when you file your income taxes.
But it is true, that if you use slot cards etc.- you have a electronic proof for full amount gambled, if you are using the card correctly.
My aunt won a car in Laughlin and the 1099 was for the value of the car.
But it is true, that if you use slot cards etc.- you have a electronic proof for full amount gambled, if you are using the card correctly.
My aunt won a car in Laughlin and the 1099 was for the value of the car.
#7
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This could vary according to state, but in Iowa they give you a tax form for any single win over $1199.00, basically $1,200. Otherwise, you do not have to report winnings. They automatically take out state taxes and you can choose whether or not to have federal taken out of your winnings.
It is important to use your slot card if you want to verify losses against any taxable wins. With my luck I have plenty of losses to offset any slot jackpots I do win!
I gamble at the two Harrah's casinos near my home and by using the slot card I can download my yearly losses (yuck) from their website which makes it very easy to document losses at tax time.
It is important to use your slot card if you want to verify losses against any taxable wins. With my luck I have plenty of losses to offset any slot jackpots I do win!
I gamble at the two Harrah's casinos near my home and by using the slot card I can download my yearly losses (yuck) from their website which makes it very easy to document losses at tax time.
#8
It isn't just your gambling losses in that casino. Other casinos and especially if you play a weekly lottery or anything like that. Always keep your stale lotto tickets because they can help offset any major winnings.
#9
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Yes, for that casino only. That means that you should have a slot card or record kept for play/losses in every casino you visit.
You are right, it is $1199 upon one win, now here too. I have not gone in years, and don't know what is current.
But for those people who go to casinos often, play lotto, or whatever- you need to keep records. I can't believe how many people go from casino and casino and don't use any slot cards or record keeping methods. When they do win in one big lump, they are going to have little proof of losses, to offset it.
You are right, it is $1199 upon one win, now here too. I have not gone in years, and don't know what is current.
But for those people who go to casinos often, play lotto, or whatever- you need to keep records. I can't believe how many people go from casino and casino and don't use any slot cards or record keeping methods. When they do win in one big lump, they are going to have little proof of losses, to offset it.
#10
"Yes, for that casino only" I don't understand what you mean - legal gambling losses can offset winnings (only up to the total winnings) whether in the same casino or not.
The amounts are aggregated over the entire tax year.
The amounts are aggregated over the entire tax year.
#11
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I think JJ meant you have to have a "slot card" (which I've never heard of until this morning, you can tell how often I gamble) for each casino for "proof", not that you can't/don't add them all up at the end of the year (which of course you do). BTW, the slot card is just proof. You always had the right to deduct losses against winnings, it's just that it was harder to prove.
#12
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In context, that slot card is for that casino only. So if a person is constantly going from casino to casino- they would need a slot card from each casino group- gotten at the customer service desk- before they start dumping money into machines.
I hear that they have systems to keep record for card playing/chip buys too now- on a card- electronically. People just walk in and drop money and don't realize how nearly impossible it is to keep record or to get all the comps for their play that way. And the comps could be considerable.
I hear that they have systems to keep record for card playing/chip buys too now- on a card- electronically. People just walk in and drop money and don't realize how nearly impossible it is to keep record or to get all the comps for their play that way. And the comps could be considerable.
#13
OK - I get it. he meant whether the card could be used in other properties.
There are other items one can use to verify gambling - copies of checks cashed in the casino, or ATM withdrawal slips.
There are other items one can use to verify gambling - copies of checks cashed in the casino, or ATM withdrawal slips.
#16
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You have to declare your winnings and as stated the casino will send a 1099 to the IRS and sometimes will also take out taxes if the amount is big enough. You can't deduct 100,000 in losses to off set a 5,000.00 win. I'm not sure how they do it with the professionals if they can prove they are making their living gambling. I don't gamble so even though I live in NV, I'm just not totally "up" on all the details.
#17
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Actually, you can deduct losses without proof, but be prepared to show proof if you get audited
That is true for any deduction. You can take as many and as much as you want - you will only have to prove it if you get audited -- a high price to pay.
One more thing - you need to itemize on your 1040 to be able to deduct your losses. It is not subject to 2% agi limit.
Deb
That is true for any deduction. You can take as many and as much as you want - you will only have to prove it if you get audited -- a high price to pay.
One more thing - you need to itemize on your 1040 to be able to deduct your losses. It is not subject to 2% agi limit.
Deb
#19
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Boy, do you guys get ripped off! ..and all the paperwork that goes with it. Down here in Oz we don't pay tax on winnings. So, if you won $5 million in the lottery you would get to keep the lot (wouldn't that be nice). You only pay tax on any subsequent earnings from your winnings ie if you put it all in the bank, you would pay tax on the interest earned, but not the $5 million itself. However, if you spent the lot, or gave it away, or stuck it under your mattress there would be no tax to pay.
#20
nytraveler - no casino in any location that I have gambled in deducts fr wins of $600 (includes NY, Nevada, Puerto Rico. New Orleans). Wins of $1200 or more require identification and a 1099 is sent to the IRS. In New Orleans, state income tax is automatically deducted from any win of $1200 or more (I think it is 5%).
And to answer the initial poster, I have never been in a casino where what you suggest is in practice.
And to answer the initial poster, I have never been in a casino where what you suggest is in practice.