Hi if you are playing .50 cent or higher vp game and hit a royal
flush that is taxable, doesnt that tax reduce the overall payback of a
mach. to less than fullpay? If you are playing 9/6 job it has a 99.5%
overall payback. The royal is 2% of that payback and if you have to
pay tax on that 2%. Does that lower your real overall payback to less
than fullpay?
TAX ON ROYAL FLUSH , ?
Hi if you are playing .50 cent or higher vp game and hit a royal
flush that is taxable, doesnt that tax reduce the overall payback of
a
mach. to less than fullpay? If you are playing 9/6 job it has a 99.5%
overall payback. The royal is 2% of that payback and if you have to
pay tax on that 2%. Does that lower your real overall payback to less
than fullpay?
I assume you specific .50 and higher because that's when you get a w2G.
However, you have to pay taxes on all your winnings, whether you get a
W-2G with the win or not.
···
--- In vpFREE@yahoogroups.com, "donn" <donnmauck@...> wrote:
Though you might have tax witheld when they issue the W-2G, you are not
paying tax at that point, just having it held for you. (isn't Uncle
Sam so nice?)
As an earlier poster mentioned, you pay tax on all winnings, even the
$2.50 big win night. But then again, if you can "document" losses up
to the winning amount, you are okay.
Of course, that is a whole 'nother discussion.
Hi if you are playing .50 cent or higher vp game and hit a royal
flush that is taxable, doesnt that tax reduce the overall payback of
a
mach. to less than fullpay? If you are playing 9/6 job it has a 99.5%
overall payback. The royal is 2% of that payback and if you have to
pay tax on that 2%. Does that lower your real overall payback to less
than fullpay?
No, in the same way that you say you're making 40,000/yr even though
you might take home 25,000/yr because of taxes. The payback is
determined between you and the casino and doesn't (and shouldn't)
include taxes - just as your wages are set between you and your
employer regardless of tax rate.
Also, as other posters point out, any win is supposed to be reported,
and you can deduct all losses from your reported winnings, so it's
irrelevant to payback based on the coin you're playing.
···
--- In vpFREE@yahoogroups.com, "donn" <donnmauck@...> wrote:
Hi if you are playing .50 cent or higher vp game and hit a royal
flush that is taxable, doesnt that tax reduce the overall payback
of a
mach. to less than fullpay? If you are playing 9/6 job it has a
99.5%
overall payback. The royal is 2% of that payback and if you have to
pay tax on that 2%. Does that lower your real overall payback to
less
than fullpay?
A number of good points have already been made in this thread.
In some cases, you would want to think of the game as having a lower
payback in the short-term, but the "normal" payback for longterm
considerations. These would be cases where state taxes are withheld
from jackpots, but you are able to ultimately re-claim those withheld
amounts with a tax return.
There are inputs for withheld state taxes in Dunbar's Risk Analyzer
for Video Poker, and these inputs can be set differently for short-
term and longterm calcs. You can see the effect of withheld taxes on
bankroll and risk-of-ruin.
--Dunbar
···
--- In vpFREE@yahoogroups.com, "donn" <donnmauck@...> wrote:
It generally shouldn't make any difference as a win on a $1000 royal is just as taxeable as a $2000 royal.. Getting or not getting a W2G does not change the amount of the tax. What may be different is that due the higher variance of 50 cent vs quarter play you will have higher wins and higher deductible losses but if your totla tax is affected by adjusted gross income (IRA deduction, student loan interest, bonds for education, lifetime learning credit)then you may be better off playing th elower denomination.
Hi if you are playing .50 cent or higher vp game and hit a royal
flush that is taxable, doesnt that tax reduce the overall payback
of a
mach. to less than fullpay? If you are playing 9/6 job it has a
99.5%
overall payback. The royal is 2% of that payback and if you have to
pay tax on that 2%. Does that lower your real overall payback to
less
than fullpay?
A number of good points have already been made in this thread.
In some cases, you would want to think of the game as having a lower
payback in the short-term, but the "normal" payback for longterm
considerations. These would be cases where state taxes are withheld
from jackpots, but you are able to ultimately re-claim those withheld
amounts with a tax return.
There are inputs for withheld state taxes in Dunbar's Risk Analyzer
for Video Poker, and these inputs can be set differently for short-
term and longterm calcs. You can see the effect of withheld taxes on
bankroll and risk-of-ruin.
--Dunbar
···
dunbar_dra <h_dunbar@hotmail.com> wrote: --- In vpFREE@yahoogroups.com, "donn" <donnmauck@...> wrote:
---------------------------------
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Your statement is true, but ONLY if one were to report ALL wins and
losses. Yes, the IRS requires this,but does everyone do it? I doubt
it. For example, do you think that people that never get a single
W2G report their winnings? I imagine most do not.
--- In vpFREE@yahoogroups.com, pesach kremen <royalflush2222@...>
wrote:
It generally shouldn't make any difference as a win on a $1000
royal is just as taxeable as a $2000 royal.. Getting or not getting
a W2G does not change the amount of the tax. What may be different is
that due the higher variance of 50 cent vs quarter play you will have
higher wins and higher deductible losses but if your totla tax is
affected by adjusted gross income (IRA deduction, student loan
interest, bonds for education, lifetime learning credit)then you may
be better off playing th elower denomination.
dunbar_dra <h_dunbar@...> wrote: --- In
vpFREE@yahoogroups.com, "donn" <donnmauck@> wrote:
>
> Hi if you are playing .50 cent or higher vp game and hit a royal
> flush that is taxable, doesnt that tax reduce the overall payback
of a
> mach. to less than fullpay? If you are playing 9/6 job it has a
99.5%
> overall payback. The royal is 2% of that payback and if you have
to
> pay tax on that 2%. Does that lower your real overall payback to
less
> than fullpay?A number of good points have already been made in this thread.
In some cases, you would want to think of the game as having a
lower
payback in the short-term, but the "normal" payback for longterm
considerations. These would be cases where state taxes are withheld
from jackpots, but you are able to ultimately re-claim those
withheld
amounts with a tax return.
There are inputs for withheld state taxes in Dunbar's Risk Analyzer
for Video Poker, and these inputs can be set differently for short-
term and longterm calcs. You can see the effect of withheld taxes
on
···
bankroll and risk-of-ruin.
--Dunbar
---------------------------------
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