cheryllj

An addendum to the above comments: slot payouts of over $1200 do trigger a W2-G form (gambling winnings), but that form is NOT generated for winnings at table games (like blackjack and craps). (At least not at any casinos I've been to.)

The casinos convinced the IRS that it would be impossible to keep track of how much a gambler bet to win a big payout and that requiring a W2-G every time a big bet paid off would be too burdensome, etc. So the casinos tell you that your winnings at the table are still taxable, but it's between you and your accountant. And the IRS.

With the slot machines, though, there is no mistaking the bells and whistles on the big payouts, so any single payout over $1200 must be reported.

dwooddon

"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."

That may be true for Iowa state income tax. It is not true for federal income taxes. Federal law requires tax payers to report all income subject to taxation, whether or not it is above or below the amount that triggers 1099 reporting.

Also, in most states, if you are a resident of a state that levies an income tax, you are also liable for taxes on winnings from other states to the extent you do not pay state income tax on them in the state where the winning occured.

For instance, a Californian comes to Las Vegas and wins 5,000. In addition to reporting it on the federal tax return, since Nevada levies no income taxes, the taxpayer will be obligated to report the full amount of the payoff on their California state income tax return. As others have stated, they can then deduct their gambling losses for the year, up to the amount of winnings, but there are requirements for documentation should an audit occur.

All of this is based on what the law requires, not what many or most people do. Do people ever not report income they should report. Of course. Do they ever get caught at it. Yes, they do.

FainaAgain

"Do people ever not report income they should report. Of course. Do they ever get caught at it. Yes, they do." - I know somebody who won $2,500 in California. They warned her to report this amount as the casino will be sending a form to IRS. I think they send a 1099.

And no, it was not me or Mr Again It was a distant relative who played $1 sluts.

DebitNM

This exact thing [not reporting income for tax purposes and getting caught] happened to Richard an early winner on Survivor. The man got big $$ and then didn't declare it. I mean, did he think they wouldn't notice since HE WON IT ON TV!!!

Deb

TxTravelPro

Alas, you can get in all kinds of trouble playing 1.00 sluts.

dmlove

TTP, I was thinking the very same thing!!

hawaiiantraveler

If you are serious about gambling in LV you establish a line of credit with the house when or even before you get there. You then draw on the line and that is your proof of investment. You play with your "house card" in all machines and games to track you winnings and losses. Of course you pay tax on major winnings but if you do show a record of your loss you can offset the lucky win at the end if you are that lucky.......probably not, lol

Don't forget to pay back the LOC as soon as you get home and don't get in for more than you can afford. That's the hard part

Aloha!

makib7229

If I win over the min requirement from a casino that I do not normally play, but do play often at another casino within the same state, does the amount of money I lost at both casino's factor into my winnings? Or, do I have to lose a certain amount at the casino where I won?

janisj

makib7229: This is a VERY old thread -- but to answer your question, as far as Federal taxes are concerned it doesn't matter which casino(s) or even in the same state. I imagine different states have different rule re state income taxes so I don't know about that.

gardendiva

If you are planning on gambling more than a few thousand dollars, I suggest that you consult with an accountant. There are various ways to keep track of your winnings and losses that can minimize your state and federal tax liability.