vpFREE2 Forums

TAX ON ROYAL FLUSH , ?

#1

"donn" 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?<<

It depends on the state and whether you're having a winning or losing year.

If your state taxes a flat amount on all W-2Gs, then yes; or, if the state taxes on reported aggregate winnings without allowing you to write off your losses at year's end. (The more honest you are, the more you pay, since all the winning sessions may not garner W-2Gs.)

If you live in a state that allows you to write off your losses to the extent of your winnings and you have a losing year, then it won't matter.

Linda Boyd
Author: "The Video Poker Edge"
www.squareonepublishers.com
Toll Free: 1-877-900-2665
Amazon.com/Bookstores: Stocked or By Order
Best Tutorial Software: WinPoker
www.videopokerpractice.com

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

#2

You may not have enough federal deductions to exceed
your standard federal deduction applicable to your
filing status and as result your federal gross income
will be higher. The higher federal gross income may
have effect on your social security income and etc.
which will result in increase your federal tax
liability. Therefore it is advantageous to play lower
denomination multi play games to lower your negative
returns on positive games. Ultimately the casinos will
understand and be motivated to lobby for change in tax
code or IRS rulings.
Vet.

···

--- Linda Boyd <maggie2194@comcast.net> wrote:

"donn" 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?<<

It depends on the state and whether you're having a
winning or losing year.

If your state taxes a flat amount on all W-2Gs, then
yes; or, if the state taxes on reported aggregate
winnings without allowing you to write off your
losses at year's end. (The more honest you are, the
more you pay, since all the winning sessions may not
garner W-2Gs.)

If you live in a state that allows you to write off
your losses to the extent of your winnings and you
have a losing year, then it won't matter.

Linda Boyd
Author: "The Video Poker Edge"
www.squareonepublishers.com
Toll Free: 1-877-900-2665
Amazon.com/Bookstores: Stocked or By Order
Best Tutorial Software: WinPoker
www.videopokerpractice.com

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

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#3

<smile> ...and pigs will fly. (IMO)

.....bl

···

--- In vpFREE@yahoogroups.com, vet <vet611@...> wrote:

Ultimately the casinos will
understand and be motivated to lobby for change in tax
code or IRS rulings.
Vet.