Taxable Jackpots

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Taxable Jackpots and Payoffs

Unfortunately, many jackpots and payoffs on your casino are taxable. Even supposing you win a unique promotion drawing and get to take home a free wide screen TV, you're going to get a value-in-kind taxable from the casino. In the event that they say the television is worth greater than $600, you're going to get an IRS 1099 form from the casino. You are going to owe taxes on that quantity. Yuk.

Now the great part is that you may offset any losses against your winnings for the calendar year, so don't have any fear, you can also owe nothing. First, you have to know what a taxable jackpot is.

Slots and Video Poker

If you might be playing any form of slot machine or video game, the taxable jackpot threshold is $1199. In the event you win $1200 or more, before the attendant pays you for the jackpot they're going to ask for a photograph ID and your social security number. If you're a US citizen and do not have your social security card for them to scan, it is important to fill out a W-9 IRS form. Again, don't fret, that only takes two minutes - but it's a must to know your social. No social security number - no payoff.

Keno

In Keno, the payoff threshold is $1499. When you hit a ticket for $1500 or more, before you get the bucks, you get to surrender the photo ID and your social security number. At some casinos the payoff can be made with out a social, but 31 percent may be withheld for tax purposes.

Parimutual - Racebook

If you drop by the local casino and bet at the Kentucky Derby and your horse wins, well, you may have to pay the tax man. It is important to supply a photograph ID and social security number before the casino prints you out an IRS W-2G form in case your payout is $600 or more and 300 times greater than the wager.

Poker

Poker players sometimes hit a tax wall after they take part in a bad-beat jackpot. So, your four 8's get cracked by four 9's and also you lose the pot, but there is a jackpot. Whoo-hoo! Tax time. If that payoff is $600 or more, you might be probably getting a 1099 form.

Even tournament players are prone to get 1099 forms when their payoff is greater than $600. Welcome to the glorious world of casino gambling.

Table Games

Just whilst you thought it was safe to move within the pit, it seems which you can get dinged for taxes there too. No, you will not get hit in the event you just happen to play great blackjack and win a couple of $500 bets, but any pooled-money jackpot or bonus bet is a possibility.

If you happen to play an advantage bet like Lucky Ladies and hit those elusive double queen of hearts, prepare for an "I got'cha" from the IRS. That's a 1000-1 win, and any 300-win for $600 or more wins you a free W-2G. Expect the similar thing with a straight flush or royal on Let it Ride or a royal flush on Caribbean Stud or even World Poker Tour Texas Hold'em.

If you want to play a game like Pai Gow with a progressive, in the event you hit the 300-1 and over $600 numbers, you're going to get a W-2G. In fact, when you do play Pai Gow, and bet the bonus, and some other person hits the monster jackpot with a 7-card straight flush, you could have a surprise in store for you.

The surprise is saved for anyone who played $5 or more at the bonus that hand, because they're going to get an "envy" bonus of $5000. YEAH! And, really, I AM GETTING a W-2G on that too? Well, sure, you bet $5 and got 1000-1 to your money. That qualifies for the IRS to take a piece or your winnings before April 15th. Unless…..

Keeping Your Winnings

The IRS doesn't such as you to maintain your whole winnings, simple as that, you know, taxes, schools, infrastructure, etc. However, you'll be able to offset your winnings by maintaining a tally of your bets and ensuring you simply need to pay on what you actually won within the casinos for the year.

The Player's Club is Your Friend

If you hit a large jackpot, you can be so happy you were a player's club member you may just dance within the streets. When you weren't, you are out within the street.

Using your player's club card will allow the casino to maintain track of your wins and losses. On the end of the year you'll be able to ask for a win/loss statement and they'll either email or snail (if the post office remains to be in business) mail you a replica. That are supposed to shrink your big jackpot's tax liability.

Also, in the event you keep your personal ledger of casino gambling, you need to use that for other casinos and the success you had there. Your ledger or log has to have four items for use along with your taxes:

• The form of game you played, equivalent to slots, craps, poker, keno
• The date and placement where you played
• Your wins and losses for every session or game - break them down individually
• Additional evidence of gambling activities akin to used Keno tickets, sports wagers, etc.

Keeping a record of your casino gambling could seem time consuming and a large pain within the craps game, but it surely is sensible for several reasons. Obviously, it will prevent quite a few money at tax time, but there's one more reason to maintain a log. By actually keeping an eye on your play, you will see that where you appear to do better or worse, what games you spend essentially the most money and time on, and which games it is advisable to skip.

That bit of knowledge, and accountability, to your gambling generally is a great point. Do it.

Read More... [Source: About.com Casino Gambling: What's Hot Now]