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taxes on winnings ?

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  • taxes on winnings ?

    Winning $6,000 at a Vegas casino resulted in a tax form given to me by a casino supervisor to be filled out and reporting this win to the IRS. Does that happen here if I win some amount of money?

  • #2
    If you mean here as in PSO, i have no idea.

    But if you keep records and reciepts of your losses you can write it off against your winnings

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    • #3
      Not sure it can happen on PSO since we don't play for real money, and sponsorship points don't count I don't think...and if they did, I dont' think cumulative winnings count, only jackpots result in casinos giving you a W2_G form.

      I know that when you win a jackpot in a casino and the amount exceeds $1200, you get a statement of gaming winnings. You can offset that by your losses, but you have to be able/willing to prove you lost the amount up to the amount of your in.

      Most casinos use those player cards, so if you play machines, ALWAYS use the player card. At the end of the year, you can get a win/loss statement mailed to you. Even if you win money in a tourney, you can use your player card -verified losses to offset your poker tourney winnings. If you win a jackpot at one casino and have losses at another, it doesn't matter at the end of the year. SO USE THE PLAYER CARD. It is one of the best methods of proving loss. I recently read on an IRS site that using ATM cards in a casino is not proof of loss. Nor is cashing a check. So protect yourself if you intend to claim loss against your jackpot.

      Some card rooms do not give out gaming forms, even if the amount you win exceeds the $1200 required by the IRS. Some card rooms give them out for amounts under that cut-off, as I have experienced first hand. In California a few years ago, I won $785 in a tourney, and was handed a W-2 gaming form. In Phoenix recently, I won $1440 and was not.

      However, I think most i fnot all casinos are regulated by the IRS and forced to give gaming winnings documentation of any single jackpot over $1199.

      It's always best to win a series of small jackpots than one big one.

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      • #4
        Here in Washington State, I was told by a native american casino poker room manager that if you won in excess of $1199 playing against the house, you were given the card, but that poker was considered between the players and what you did about IRS was your responsibility.

        I assumed it would be that way for all poker rooms, but y'all have shaken my faith. I sure would like to hear from all who were handed a W2_G form for POKER winnings and for that matter, those who were not and had winnings in excess of $1199.

        Warm regards from a cold fish

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        • #5
          Here in the UK we don't have to pay any taxes on any Poker Winnings

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          • #6
            But, you do have to pay taxes on just about everything else known to man . I thought taxes here sucked, until I learned about the What the Europeans pay

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            • #7
              Well, I think the $1199 is definitely enforced from jackpots in all machines no matter what casino...I have played in dozens and have not seen it vary from that law.

              But for some reason, Poker rooms have latitude in WHAT they report for our winnings. I have won up to $2000 in tourney purses and not had a W-2G form...and like I said in earlier post, have had W-2G forms for under $800 at the Bike. So I am not sure there is a clear cut rule they follow.

              Just be thankful if you win tourney money and no one asks you for social security info and brings out a clipboard with a W2G on it

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              • #8
                I'm not tax accountant so all of this is unoffical and not tax advice, but at my local poker room, they strickly enforce handing out W-2G's for any payout of $600 or more. This usually precipates chopping for those that place in a narrow range of payouts (say 350-750) so that everyone will get a payout near $590. (e.g. you would be better off getting 550 and paying 0 tax than getting 650 and paying 20% tax.)

                Regarding deductability of gambling losses. Short of getting a win/loss record from your players club card, a well kept journal of your gambling activities is usually what the IRS will want to see. This should include:
                Date, location (casino name, address, and table #), game played, win/loss, witnesses (if any).

                Now if you do this, you probably shouldn't have all 'losing' sessions with your one documented W2G winning session. This will certainly not fly if audited.

                So ok you sprinkle in some wins amongst those losses. But each win in your journal gets added to your W2G total, so your 'journal' losses need to outstrip your 'journal' wins by 3:1 or 5:1 (depending on your tax bracket) for you to be able to start to apply your loses to offset your W2G win. To this end, a simple 'amount ahead/behind' # from a players club report would be nice. Also, tournament reciepts are nice since it is easier to argue cashing in tournaments is a much rarer (unfortunately for me too rare, lol) activity than winning sessions in a ring game. However, again if audited you will have to answer 'you won some money playing poker on sep 3 of last year, how often do you play poker, did you ever win any other times, how much were those winnings.

                best of luck.

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                • #9
                  This reminds me of a story I heard which I don't know if it is true, am always skeptical of "stories" that i have no personal knowlege. But It was a about a professional gambler who did very well playing poker and sports betting and kept records. He would then collect losing racing tickets and sports tickets from the casino floors and tables and document them as loses, thus sidestepping much of his taxes.

                  I'm not advocating this, nor do I know if it would even work, but I thought it was funny

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                  • #10
                    NICE :idea:

                    WiredBull :wink:

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                    • #11
                      A few thoughts

                      The $1199 limit is for machines. Poker rooms have latitude on their reporting requirements because they fall under the table gaming provisions. There is no hard win amount at a table but the casino is supposed to issue a tax form when there is a buy in or cash out of $10,000 or more. Regarding poker tournaments, there is a grey area. You will always get a receipt for the buy in. At one casino in Vegas, I was issued a W2G for a win of $1500 while at another $2000 was not an issue.

                      Regarding sponsorship points, you make the call. I think the IRS would say they are taxable as you are getting value without paying for it. As an example, I recently won a $9000 package to the Aruba Classic. This is considered taxable income even though I am not getting cash. When I arrive in Aruba and register I will get a tournament receipt for $5200 which will be deductible. Hopefully I will do well in the tournament and have a much bigger "problem"

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