vpFREE2 Forums

$1200 W2G

#1

This is correct. I spoke with a rather elderly fellow at MGM Detroit a
couple of months ago and he has quite a story to tell. He loves the quarter 9/7 DB
progressives there, and plays a pretty damn good game (obviously has been
studying). Although he was a small net loser last year, the W2G's he generated
had the effect of wiping out his eligibility for Social Security. Plus, he
owed State income tax to Michigan on all those W2G hits, since the State will not
allow fading the wins with losses. He estimated that his total cost was
"about $4,000 to $5,000." Now he doesn't play very much, and definitely doesn't
play the progressive at $1,200 or higher except for the rare cases when it
creeps very high.

- Brian in MI

In a message dated 11/21/2005 7:24:38 AM Eastern Standard Time,
bornloser1537@yahoo.com writes:

It may be for you but this is not strictly the case for all people, under
all circumstances.

[Non-text portions of this message have been removed]

#2

Is that a way of saying that if I put $10 in a JoB machine (dollar,
5-coin), hit 2P (win $5) and then hit nothing (lose $5), finally
walking away with $10, I would owe taxes on my $5 winnings?

JBQ

···

On 11/21/05, Marksalot300@aol.com <Marksalot300@aol.com> wrote:

Plus, he
owed State income tax to Michigan on all those W2G hits, since the State will not
allow fading the wins with losses.

#3

--- In vpFREE@yahoogroups.com, Jean-Baptiste Queru <jbqueru@g...>
wrote:

Is that a way of saying that if I put $10 in a JoB machine (dollar,
5-coin), hit 2P (win $5) and then hit nothing (lose $5), finally
walking away with $10, I would owe taxes on my $5 winnings?

Actually, you would owe taxes on your $10 winnings, but could write
off $10 in losses for a net tax amount owed of $0.00.

Assuming your two pair paid 2-for-1 (or $10 for your $5 bet), it's
considered a $10 win, despite the fact that you spent $5 to win it.
If you hit a Royal on that game, for example, you would get a W2-G
for $4000 -- not $3995.

Since you can deduct your gambling losses when you file your taxes
(up to the amount you have claimed to win), you had a $10 win, and
$10 in losses for a net of $0.00.

This past year, I was fortunate enough to hit a Royal Flush for
$2000. I received a W2-G for that. I may deduct up to $2000 in
documented losses against that win. If I can document that much in
losses, I will not owe anything on the win.

#4

I am assuming that your itemized deductions exceed the standard
deduction.

···

--- In vpFREE@yahoogroups.com, "Kevin" <letterman@p...> wrote:

This past year, I was fortunate enough to hit a Royal Flush for
$2000. I received a W2-G for that. I may deduct up to $2000 in
documented losses against that win. If I can document that much in
losses, I will not owe anything on the win.

#5

--- In vpFREE@yahoogroups.com, "deuceswild1000" <deuceswild1000@y...>
wrote:

I am assuming that your itemized deductions exceed the standard
deduction.

I let TurboTax determine that. :slight_smile:

...but I believe you're right, if the standard deduction is better,
then I believe I would lose out on any benefit of being able to claim
my losses.

Brian in MI: That's interesting (and awful) about the state income tax
in Michigan. Thank you for that information.