Is the following true:deduction. Even if you had perfect records, you'd have to have net gambling losses along with other itemized deductions, in excess of your standard deduction.
If you are playing a slot machine or video poker machine, any single spin winning more than $1200 will cause the casino to issue you a 1099-G. This must be reported as income. The only way to offset this is to take gambling losses as an itemized
Accordingly, a tax-efficient strategy is to try to avoid ever having a win on a single spin greater than $1200. If you play video poker, where the biggest prize is generally 4000 times you wager unit value, you would not want to play for 50 cents or adollar, but rather a quarter, because playing for quarters you will never get over $1000 on a single spin.
You could in theory get ten $1000 wins in a row and in that case you'd simply be on your honor to report the winnings, but a single $2000 win and you get a 1099-G.
I have periodically noticed top prizes on machines of 1,199 "coins." I never really thought much about this until I started thinking about 1099-G's.
--
If you are playing a slot machine or video poker machine,
any single spin winning more than $1200 will cause the
casino to issue you a 1099-G.
Yes, sorry, got my "G's" mixed up.If you are playing a slot machine or video poker machine,Gambling winnings are reported on a W-2G, not a 1099-G. Form
any single spin winning more than $1200 will cause the
casino to issue you a 1099-G.
1099-G is for government payments, such as unemployment
benefits or a state tax refund.
Bob Sandler
On Monday, October 25, 2021 at 9:54:04 AM UTC-4, Bob Sandler wrote:million hands and found that I had a net profit on 42 of them, so it's possible to win over a fairly long period of time. The machine has options to play for $1.25, $2.50, or $5.00 per play. The associated prize for 4 Aces (the second-highest award) is $
If you are playing a slot machine or video poker machine,Gambling winnings are reported on a W-2G, not a 1099-G. Form
any single spin winning more than $1200 will cause the
casino to issue you a 1099-G.
1099-G is for government payments, such as unemployment
benefits or a state tax refund.
Bob SandlerYes, sorry, got my "G's" mixed up.
When I log into my casino loyalty account, they give me a "Win/Loss Statement" which I think is an estimate and unofficial. And also an option for W2-G's of which I have none.
Was 2015-21 finalized? I could only find it as a comment draft.
For those who care...
I only recently began playing video poker. (Prior to this I only played craps and blackjack, with occasional ventures to a low-stakes video poker machine to kill time.) The game I play has a 99.8% return, and I did a simulation of 100 sessions of 1
r 100 hours. Of course your strategy will affect that. Say you are dealt K-T in the same suit and 3 other useless cards. Holding the T will increase your odds of a royal flush (about 1 in 16,200) but decrease your odds of other paying hands like jacksor better, 3 of a kind, and 4 of a kind. The difference in expectation between KT and just the K is fairly small, and if you haircut the royal flush payoff for taxes, it would probably be better to hold just the K. On the other hand if you are dealt AKT
The casino, based on my player's card, can track me exactly. So it seems like I should avoid situations where I could win more than $1200 in a day. If I were +$250 and hit a royal for $1000, it might be in my interest to dump $51 back. It's trivial forme to track my results, since I know what I started the day with. I assume the casino will issue me a W2-G for each day I win over $1200 (because they have to) but not for anything less (because they don't have to, and why should they?).
--
On Monday, October 25, 2021 at 9:54:04 AM UTC-4, Bob Sandler wrote:million hands and found that I had a net profit on 42 of them, so it's possible to win over a fairly long period of time. The machine has options to play for $1.25, $2.50, or $5.00 per play. The associated prize for 4 Aces (the second-highest award) is
Yes, sorry, got my "G's" mixed up.If you are playing a slot machine or video poker machine,Gambling winnings are reported on a W-2G, not a 1099-G. Form
any single spin winning more than $1200 will cause the
casino to issue you a 1099-G.
1099-G is for government payments, such as unemployment
benefits or a state tax refund.
Bob Sandler
When I log into my casino loyalty account, they give me a "Win/Loss Statement" which I think is an estimate and unofficial. And also an option for W2-G's of which I have none.
Was 2015-21 finalized? I could only find it as a comment draft.
For those who care...
I only recently began playing video poker. (Prior to this I only played craps and blackjack, with occasional ventures to a low-stakes video poker machine to kill time.) The game I play has a 99.8% return, and I did a simulation of 100 sessions of 1
r 100 hours. Of course your strategy will affect that. Say you are dealt K-T in the same suit and 3 other useless cards. Holding the T will increase your odds of a royal flush (about 1 in 16,200) but decrease your odds of other paying hands likejacks or better, 3 of a kind, and 4 of a kind. The difference in expectation between KT and just the K is fairly small, and if you haircut the royal flush payoff for taxes, it would probably be better to hold just the K. On the other hand if you are
The casino, based on my player's card, can track me exactly. So it seems like I should avoid situations where I could win more than $1200 in a day. If I were +$250 and hit a royal for $1000, it might be in my interest to dump $51 back. It's trivialfor me to track my results, since I know what I started the day with. I assume the casino will issue me a W2-G for each day I win over $1200 (because they have to) but not for anything less (because they don't have to, and why should they?).
Just because you have winnings under $1200 doesn't mean you
don't have to report them and pay income tax on them.
On 10/26/2021 9:28, Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you don't have to
report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like a tax >avoidance scheme than a procedural matter.
paultry wrote:
On 10/26/2021 9:28, Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you don't have to >>>report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like a tax >>avoidance scheme than a procedural matter.
While that's a valid point, I suspect that a very small percentage of >taxpayers would report their gambling income if they made too little to >receive a W2-G, especially if they thought their losses exceeded their >income.
Rick <rick@nospam.com> wrote:
paultry wrote:
Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you
don't have to report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like
a tax avoidance scheme than a procedural matter.
While that's a valid point, I suspect that a very small percentage
of taxpayers would report their gambling income if they made too
little to receive a W2-G, especially if they thought their losses
exceeded their income.
But they don't get to think that only net winnings are reportable
if they don't itemize, do they, as losses are reportable only as
other itemized deductions up to the amount of winnings. Gross
winnings are reportable as other income regardless of whether
losses can be reported.
Who said the tax code is fair?
"Adam H. Kerman" <a...@chinet.com> wrote:
Rick <ri...@nospam.com> wrote:
paultry wrote:
Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you
don't have to report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like
a tax avoidance scheme than a procedural matter.
While that's a valid point, I suspect that a very small percentage
of taxpayers would report their gambling income if they made too
little to receive a W2-G, especially if they thought their losses >>exceeded their income.
But they don't get to think that only net winnings are reportable
if they don't itemize, do they, as losses are reportable only as
other itemized deductions up to the amount of winnings. Gross
winnings are reportable as other income regardless of whether
losses can be reported.
Who said the tax code is fair?If they're actually trying to make a profit (and who isn't when they
gamble?) they may qualify as professional gamblers. In that case
they can deduct their losses up to the amount of their winnings.
They may also be able to deduct other costs related to gambling, like transportation and lodging.
--
Stu
http://DownToEarthLawyer.com
--
"Adam H. Kerman" <ahk@chinet.com> wrote:
Rick <rick@nospam.com> wrote:
paultry wrote:
Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you
don't have to report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like
a tax avoidance scheme than a procedural matter.
While that's a valid point, I suspect that a very small percentage
of taxpayers would report their gambling income if they made too
little to receive a W2-G, especially if they thought their losses
exceeded their income.
But they don't get to think that only net winnings are reportable
if they don't itemize, do they, as losses are reportable only as
other itemized deductions up to the amount of winnings. Gross
winnings are reportable as other income regardless of whether
losses can be reported.
Who said the tax code is fair?
If they're actually trying to make a profit (and who isn't when they
gamble?) they may qualify as professional gamblers. In that case
they can deduct their losses up to the amount of their winnings.
They may also be able to deduct other costs related to gambling, like transportation and lodging.
Rick <rick@nospam.com> wrote:
paultry wrote:
On 10/26/2021 9:28, Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you don't have >>>>to
report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like a tax >>>avoidance scheme than a procedural matter.
While that's a valid point, I suspect that a very small percentage of >>taxpayers would report their gambling income if they made too little to >>receive a W2-G, especially if they thought their losses exceeded their >>income.
But they don't get to think that only net winnings are reportable if they >don't itemize, do they, as losses are reportable only as other itemized >deductions up to the amount of winnings. Gross winnings are reportable
as other income regardless of whether losses can be reported.
Who said the tax code is fair?
On 10/26/21 5:07 PM, Stuart O. Bronstein wrote:
"Adam H. Kerman" <a...@chinet.com> wrote:
Rick <ri...@nospam.com> wrote:
paultry wrote:
Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you
don't have to report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like
a tax avoidance scheme than a procedural matter.
While that's a valid point, I suspect that a very small percentage
of taxpayers would report their gambling income if they made too
little to receive a W2-G, especially if they thought their losses
exceeded their income.
But they don't get to think that only net winnings are reportable
if they don't itemize, do they, as losses are reportable only as
other itemized deductions up to the amount of winnings. Gross
winnings are reportable as other income regardless of whether
losses can be reported.
Who said the tax code is fair?
If they're actually trying to make a profit (and who isn't when they gamble?) they may qualify as professional gamblers. In that case
they can deduct their losses up to the amount of their winnings.
They may also be able to deduct other costs related to gambling, like transportation and lodging.
Over and above what IRA S said (a profit motive is not enough to make
you someone who is in the business of gambling), the limitation on what
goes on your Schedule C is that the sum of your gambling losses plus
your business expenses can not exceed your winnings.... at least to
2025. See Tax Cuts and Jobs Act of 2017 (PL 115-97)
"Adam H. Kerman" wrote in message news:sl9mgb$seb$1...@dont-email.me...
Rick <ri...@nospam.com> wrote:
paultry wrote:
On 10/26/2021 9:28, Taxed and Spent wrote:
Just because you have winnings under $1200 doesn't mean you don't have >>>>to
report them and pay income tax on them.
Thanks for emphasizing that. This thread was sounding more like a tax >>>avoidance scheme than a procedural matter.
While that's a valid point, I suspect that a very small percentage of >>taxpayers would report their gambling income if they made too little to >>receive a W2-G, especially if they thought their losses exceeded their >>income.
But they don't get to think that only net winnings are reportable if they >don't itemize, do they, as losses are reportable only as other itemized >deductions up to the amount of winnings. Gross winnings are reportable
as other income regardless of whether losses can be reported.
Who said the tax code is fair?
But that's the point. It is because the tax code is widely considered
unfair in the way gambling income vs. losses are treated that most people
who earn under the limit for receiving a W2-G are probably not going to report their winnings.
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