In a message dated 11/20/2003 11:07:49 PM Pacific Standard Time,
vpFREE@yahoogroups.com writes:
W-2Gs are given on slot or VP wins of $1,200 or more
and withholding is mandatory for wins of $5,000 or
more.David
David, since when has it been mandatory?
What's the withholding rate?
Thanks for any info that you can give us.
Glenn
[Non-text portions of this message have been removed]
I have NEVER had any withholding and I have won jackpots in excess of
$40,000 several times and have had eleven (11) over $5,000 this year
alone.
On Fri, 21 Nov 2003 13:27:58 EST, you wrote:
In a message dated 11/20/2003 11:07:49 PM Pacific Standard Time,
vpFREE@yahoogroups.com writes:W-2Gs are given on slot or VP wins of $1,200 or more
and withholding is mandatory for wins of $5,000 or
more.David
David, since when has it been mandatory?
What's the withholding rate?
Thanks for any info that you can give us.
Glenn
[Non-text portions of this message have been removed]
vpFREE Links: http://www.west-point.org/users/usma1955/20228/VP/Links.htm
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
All of the questions that have been raised here are covered in detail in the book coming out in January - "Tax Help for the Frugal Gambler." Most of the questions can not be answered in a sentence or two, but require long explanations.
Here is one section from the book that addresses the withholding question raised:
"Federal tax withholding is not required for any amount of winnings from slot machines, bingo, and keno for U. S. citizens who have proper ID and give a SS #. However, you may request withholding by the casino for any amount, a handy technique at times to save you the extra paperwork of filing estimated taxes. Casinos will usually do this for you with no problems, but occasionally I've had this request refused because the particular employee was not familiar with the procedure or didn't want to bother with it. Federal tax withholding (28-31%) is required for most other forms of gambling, usually amounts of more than $5,000 that are at least 300 times as large as the amount wagered."
____________________
Jean $cott - "The Frugal Gambler"
MORE FRUGAL GAMBLING can now
be ordered, autographed, at
http://www.FrugalGambler.biz
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.538 / Virus Database: 333 - Release Date: 11/10/2003
[Non-text portions of this message have been removed]
I’m sure it’s too late to add, but requesting withholding can do more than
just save time on paperwork. If you have under withheld or under paid
estimated taxes during the year, having taxes withheld from a jackpot can
save you money in penalties and interest. Withholding at any point during
the year is treated as being done equally throughout the year.
So theoretically, if you had underpaid taxes of $5000 during the year, you
could on December 31 go to a $5 machine and have every W2-G payment withheld
until you made up the $5000, thereby eliminating any under withholding
penalties you might have incurred.
(Jean, make sure Marissa sees this so I can earn some brownie points!)
-----Original Message-----
From: Jean Scott [mailto:QueenofCo…@…biz]
Sent: Friday, November 21, 2003 11:07 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Tax Questions
All of the questions that have been raised here are covered in detail in the
book coming out in January - "Tax Help for the Frugal Gambler." Most of the
questions can not be answered in a sentence or two, but require long
explanations.
Here is one section from the book that addresses the withholding question
raised:
"Federal tax withholding is not required for any amount of winnings from
slot machines, bingo, and keno for U. S. citizens who have proper ID and
give a SS #. However, you may request withholding by the casino for any
amount, a handy technique at times to save you the extra paperwork of
filing estimated taxes. Casinos will usually do this for you with no
problems, but occasionally I've had this request refused because the
particular employee was not familiar with the procedure or didn't want to
bother with it. Federal tax withholding (28-31%) is required for most other
forms of gambling, usually amounts of more than $5,000 that are at least 300
times as large as the amount wagered."
____________________
Jean $cott - "The Frugal Gambler"
MORE FRUGAL GAMBLING can now
be ordered, autographed, at
http://www.FrugalGambler.biz
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.538 / Virus Database: 333 - Release Date: 11/10/2003
[Non-text portions of this message have been removed]
Yahoo! Groups Sponsor
<http://rd.yahoo.com/SIG=12cgrpdl2/M=259395.3614674.4902533.1261774/D=egroup
web/S=1705065732:HM/EXP=1069571257/A=1524963/R=0/*http:/hits.411web.com/cgi-
bin/autoredir?camp=556&lineid=3614674∝=egroupweb&pos=HM>
<http://us.adserver.yahoo.com/l?M=259395.3614674.4902533.1261774/D=egroupmai
l/S=:HM/A=1524963/rand=359062326>
vpFREE Links: http://www.west-point.org/users/usma1955/20228/VP/Links.htm
Your use of Yahoo! Groups is subject to the Yahoo!
<http://docs.yahoo.com/info/terms/> Terms of Service.
[Non-text portions of this message have been removed]
"Federal tax withholding is not required for any amount of winnings
from slot machines, bingo, and keno for U. S. citizens who have
proper ID and give a SS #.
At San Manuel Indian Casino in So.California, all jackpots over $1200
are not only w2-g'ed, but they automatically withhold 28% whether
you want them to or not.. <sigh> This is not an option with them.
Same goes in their poker room with the "bad beat" jackpots. Any
payout above $1200 gets withholding taken out. Been there, done that.
ADR
I wrote: "Federal tax withholding is not required for any amount of winnings from slot machines, bingo, and keno for U. S. citizens who have proper ID and give a SS #. .....Federal tax withholding (28-31%) is required for most other forms of gambling, usually amounts of more than $5,000 that are at least 300 times as large as the amount wagered."
Someone else wrote: <<At San Manuel Indian Casino in So.California, all jackpots over $1200
are not only w2-g'ed, but they automatically withhold 28% whether
you want them to or not.. <sigh> This is not an option with them.
Same goes in their poker room with the "bad beat" jackpots. Any
payout above $1200 gets withholding taken out. Been there, done that.>>
This is new information to me - and it seems like the casino does not know the tax regulations. Is this true in all CA Indian casinos - or in some others - or is this just the policy in one casino. When you get the W2G, is this 28% withheld listed under FEDERAL income tax? If so, although an inconvenience and certainly not a federal requirement, this would come under "federal tax withheld" and it would go to paying taxes you owe or be refunded - for residents of CA and any other state. So, you would not lose it permanently. Or, is this 28% a STATE income tax amount? Then that becomes a real problem for non-residents, depending on their state of residence.
____________________
Jean $cott - "The Frugal Gambler"
MORE FRUGAL GAMBLING can now
be ordered, autographed, at
http://www.FrugalGambler.biz
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.538 / Virus Database: 333 - Release Date: 11/10/2003
[Non-text portions of this message have been removed]