If a player receives more than $600 in cash-back (over a year), paid
in installments of (say) $100 or less, is it at all probable that the
casino will file a 1099 form with the IRS?
Possible 1099 Form
sphboc2003 wrote:
If a player receives more than $600 in cash-back (over a year), paid
in installments of (say) $100 or less, is it at all probable that
the casino will file a 1099 form with the IRS?
I've never heard of this occurring, even when individual cashback
redemptions exceeded the $600 reporting threshold for miscellaneous
income.
I should qualify this by saying that I recall a past discussion
concerning a LV local in which the poster advised not allowing
cashback to accumulate to $600 because of the risk that this casino
would issue a 1099 upon a single redemption of $600+. But I'm not
personally aware of this happening to anyone I'm familiar with.
In general, the treatment by casinos appears to be that the payments
do not require reporting under 1099 income definitions. (This is not
to suggest that the casinos are advising that cashback is non-taxable.)
I've had the experience that modest tournament wins and other cash
prizes during a year were accumulated and a 1099 was issued on the
total. Another player reported to me that large merchandise premiums
he received from a casino were aggregated for 1099 reporting at the
end of the year.
Your best bet for guidance in your case would be to catch the ear of a
very regular player at the casino in question to see what their
experience has been.
- Harry