When you win a drawing at a casino, you are almost always given a 1099
misc income form for it rather than a w2-g. This depsite tickets being
earned via gambling on the machines. For some reason, the casions
literally seems scared to death to issue w2-gs for any prizes as if
they will lose their gaming license if they do so. Rather they issues
player unfriendy 1099s which by 'technial rules' are not allowed to be
deducted against gambling losses. Granted from what I have experienced,
everyone in this spot deducts them anyway, and IRS seems to let it be
ok. (but it may involve an audit to get them to sign off on it).
I just don't understand why casinos are just so paranoid about this.
Their policy seems to be if only 1 ticket is given away for free and 1
million+ earned by gambling, they will issue 1099. Even if all are
earned gambling, they still issue 1099. Currently, Stations is having a
point contest. Those with most coin in win prizes. Only way to win, is
by gambling, yet they issue 1099 if you win, not w2-g. (or no 1099 if
you accept freeplay) Another example at stations, if you play poker and
hit bad beat jackpot, you get 1099 not w2-g. How crazy is that?
Stepping down from soapbox. TomSki
1099 vs W2-g Pet peeve
Next time they bring you a 1099 refuse to sign it because it isnt on
the proper tax form.
then when they refuse to pay you call gaming and file a complaint.
then contact the IRS and request information concerning the complaint
explane to them your concerns that the offending casinos are filing
gaming losses in an incorrect manner.
When you win a drawing at a casino, you are almost always given a
1099
misc income form for it rather than a w2-g. This depsite tickets
being
earned via gambling on the machines. For some reason, the casions
literally seems scared to death to issue w2-gs for any prizes as if
they will lose their gaming license if they do so. Rather they
issues
player unfriendy 1099s which by 'technial rules' are not allowed to
be
deducted against gambling losses. Granted from what I have
experienced,
everyone in this spot deducts them anyway, and IRS seems to let it
be
ok. (but it may involve an audit to get them to sign off on it).
I just don't understand why casinos are just so paranoid about
this.
Their policy seems to be if only 1 ticket is given away for free
and 1
million+ earned by gambling, they will issue 1099. Even if all are
earned gambling, they still issue 1099. Currently, Stations is
having a
point contest. Those with most coin in win prizes. Only way to win,
is
by gambling, yet they issue 1099 if you win, not w2-g. (or no 1099
if
you accept freeplay) Another example at stations, if you play poker
and
···
--- In vpFREE@yahoogroups.com, "TomSkiLV" <tomskilv@...> wrote:
hit bad beat jackpot, you get 1099 not w2-g. How crazy is that?
Stepping down from soapbox. TomSki
timmer wrote:
Next time they bring you a 1099 refuse to sign it because it isnt on
the proper tax form.
Interestingly, you don't sign a 1099. You aren't required to attest
re your SSN and certain other info as you are with a W-2G
- H.
<<timmer wrote:
Next time they bring you a 1099 refuse to sign it because it isnt on
the proper tax form.
Interestingly, you don't sign a 1099. You aren't required to attest
re your SSN and certain other info as you are with a W-2G>>
And I'd like to see someone "demand" a W2G. And the gaming regulators wouldn't go to bat for you since the IRS actually hasn't put in writing all the rules for casinos in this matter. One casino - I forget which one - maybe the Gold Coast - did make an agreement with the local IRS district that they would give W2Gs for drawing winners. And there have been some rules agreed on concerning live poker tournaments. But most casinos seem to do whatever they want to.
Caesars does give W2Gs for slot tournaments (Brad got a W2G for his $500,000 win) but most casinos give 1099's. Also, some only give 1099 for one drawing/tournament that is over $600; others add up all the wins of the year and issue one 1099 if that total is over $600.
···
________________________________________
Jean $¢ott - "FRUGAL VIDEO POKER"
This new book (autographed) and other
frugal products are now available at my
new Web site, http://queenofcomps.com/.
E-mail address is queenofcomps@cox.net.
[Non-text portions of this message have been removed]
queenofcomps wrote:
Caesars does give W2Gs for slot tournaments (Brad got a W2G for his
$500,000 win) but most casinos give 1099's. Also, some only give 1099
for one drawing/tournament that is over $600; others add up all the
wins of the year and issue one 1099 if that total is over $600.
While I haven't reviewed specifics, is it possible that Caesars
treated the entry fee on that tournament as a wager-equivalent?
Of course, there's no doubt that casinos, in general, employ no hard
and fast distinction in determining which form to issue. I believe
that there was a tax court opinion that observed as much.
For that matter, were I ever challenged on the inclusion of
casino-sourced 1099 income (tournament, drawing, etc.) as part of
reported gambling income, I'd cite that opinion in defense.
- Harry