All income is taxable (with rare exceptions, none in the gambling arena). If you work as a consultant and one of your clients pays you $200 several times during the year, they will issue you a 1099 for the amount you were paid in total. Same goes for casinos that hand out taxable money.
Just because a payment doesn't generate a 1099 or a W2G doesn't mean it's not taxable. If I were the IRS and the only gambling income someone reported was the income that generated a form, I'd sure be suspicious, since it's very unlikely that these events reflect 100% of the income and losses an indivdual had; exception would be the rare person who puts a single quarter in a machine and hits a jackpot on the first try.
=BG
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1f. Re: 1099's
Date: Wed Feb 10, 2010 9:43 pm ((PST))I have a question about 1099's. I have never had a 1099 only W2-G's. I got a
badbeat jackpot at a CA card club for $1500 and recieved a 1099 misc income
form.
I also, over the course of a year, won a $500 drawing and 2 table share's from
jackpots that added up to $971. They have sent a 1099 form for this amount. I
know in NV and even in CA Indian casino's the "hit" has to be all in one
hand/draw/spin to be taxable does anyone know the rule on this for card clubs?
It seems wrong to add up smaller wins and issue 1099's on them!!