vpFREE2 Forums

Conundrum

#1

This past Sunday morning, I was playing 5-play Multi-Strike NSUD for
quarters at Atlantis Reno. On the first 2 lines, I got paid every
hand, but small payoffs, nothing bigger than a straight I think. On
the third line, I got dealt 2 deuces. When I drew, I forget what I
got on four of the hands, but in the middle one I got quad deuces.
That's a 1000 coin pay-off, and since I'm at the 4x level, it's $1000.

For all hands on the first 3 levels, I've got something like $1075.
Then on the top level, I get dealt trip 8s (no wilds). I realize that
one option is to throw them away, in order to minimize my chances of
winning more than $1200, the level at which the IRS would be notified.

I realize that some people feel there's some moral duty to follow the
letter of the tax law, and report any gambling winnings, whether or
not the IRS knows about it. I realize that some people think it's
actually a good thing for the US government to get more money.
Let's put those considerations aside for a moment, and leave this
just a mathematical and psychological story.

I just couldn't do it. Couldn't bear to toss those trips. I ended up
hitting quads on 4 of the 5 hands, generating one of those tax forms
for $1250-something.

Stuart (RandomStu)
http://stuart-randomthoughts.blogspot.com/

#2

sorry for your good luck

T2

···

--- In vpFREE@yahoogroups.com, "Stuart" <sresnick2@...> wrote:

I just couldn't do it. Couldn't bear to toss those trips. I ended up
hitting quads on 4 of the 5 hands, generating one of those tax forms
for $1250-something.

#3

This past Sunday morning, I was playing 5-play Multi-Strike NSUD

for

quarters at Atlantis Reno.

Your question about when to "throw" a game when on the verge of
winning more than $1199.99 is interesting. Some players to avoid a W-
2G recruit a nearby player to collect the winnings and sign the tax
form.

One consideration is if you itemize your losses as a deduction to
offset W-2G winnings. In that case, you maximize the ER of every hand
by playing properly. Offset those taxable winnings with your losses.

But, there are those players who might not itemize. Or, they do, but
have far more taxable winnings than losses. For these individuals all
subsequent W-2Gs become fully taxable. At that point, your decision
might be based on the greatest after-tax return. The logic is that
(in a hypothetical 40% tax bracket Fed & State) $1250 - 40% (about
$500) leaves you only $750 after tax. That's way less than your MS
winnings up to the 4X line.

I would only like to suggest two factors to consider in your decision.

First, even if you don't have enough losses to itemize now, you might
later.

Second, perhaps your decision about whether to go over $1200 should
be based on the maximum you could win. On the 8X line, you possibly
could have drawn all 5-of-a-kinds playing NSUD when holding three of
a kind.

Assuming a payoff of 16 for 5K, that's $160 each on the 8X line.
Although unlikely, the potential of an extra $800 (if 5 3K hands
became 5K) would definitely make me take a shot.

But assume you only had one 8X line hand remaining and only the
opportunity to barely pass $1200 (i.e. dealt 3-5-7-9-J in mixed
suits). In that case the decision might be different. Perhaps "chuck"
the 8X line hand altogether and accept your sub-$1200 winnings
gleefully.

···

--- In vpFREE@yahoogroups.com, "Stuart" <sresnick2@...> wrote: