vpFREE2 Forums

Taxable 4 aces

#1

Hi.
We were playing 8/5 Bonus Poker Dollar triple play at Planet Hollywood. My husband got 4 aces dealt. 4 aces pays 400, so the win was $1200. The machine locked and attendant came to pay. We said it should not be taxable but they insisted and we have a w2g for it. Maybe we should have called for someone with more authority. It is really 3 games when playing triple play.

What happens on table games? I have seen guys betting more than a thousand per hand. If a bet is over $1200, is EVERY hand a taxable win? Seems like it should be, if our win was taxable.

#2

Table games rules are different. I think the rule is if they cash out
$10,000 in chips or more, it gets reported to the IRS. Individual hands
aren't taxable AFAIK.

···

On Mon, Aug 16, 2010 at 11:24 AM, HOHOHONDO <hohohondo@yahoo.com> wrote:

Hi.
We were playing 8/5 Bonus Poker Dollar triple play at Planet Hollywood. My
husband got 4 aces dealt. 4 aces pays 400, so the win was $1200. The machine
locked and attendant came to pay. We said it should not be taxable but they
insisted and we have a w2g for it. Maybe we should have called for someone
with more authority. It is really 3 games when playing triple play.

What happens on table games? I have seen guys betting more than a thousand
per hand. If a bet is over $1200, is EVERY hand a taxable win? Seems like it
should be, if our win was taxable.

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

#3

All gambling income is taxable and must be reported, although gambling losses can be deducted up to the amount of your winnings. In other words, your gambling trip can result in taxable income or no taxable income, but never negative taxable income.

The issue you're describing comes from the requirement of the casino to provide you with a W-2G, which is not the same thing. It's a reporting threshold, not a "taxable" threshold. On table games a W-2G is required (I believe) if the payout is over $600 AND on a wager that pays more than 300-to-1. There are different thresholds for different types of wagering. For example, I think you have to win $5000 in a poker tournament for the casino to be required to give you a W-2G.

···

To: vpFREE@yahoogroups.com
From: hohohondo@yahoo.com
Date: Mon, 16 Aug 2010 18:24:32 +0000
Subject: [vpFREE] Taxable 4 aces

Hi.
We were playing 8/5 Bonus Poker Dollar triple play at Planet Hollywood. My husband got 4 aces dealt. 4 aces pays 400, so the win was $1200. The machine locked and attendant came to pay. We said it should not be taxable but they insisted and we have a w2g for it. Maybe we should have called for someone with more authority. It is really 3 games when playing triple play.

What happens on table games? I have seen guys betting more than a thousand per hand. If a bet is over $1200, is EVERY hand a taxable win? Seems like it should be, if our win was taxable.

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

#4

We were playing 8/5 Bonus Poker Dollar triple play at Planet Hollywood. My husband got 4 aces dealt. 4 aces pays 400, so the win was $1200. The machine locked and attendant came to pay. We said it should not be taxable

As the other reply says, all gambling wins are subject to income tax.

but they insisted and we have a w2g for it.

The casino was correct in issuing you a W2G.

Maybe we should have called for someone with more authority. It is really 3 games when playing triple play.

Doesn't matter.

What happens on table games? I have seen guys betting more than a thousand per hand. If a bet is over $1200, is EVERY hand a taxable win? Seems like it should be, if our win was taxable.

They're not the same. If you are interested in learning the rules instead of just guessing:

http://www.irs.gov/pub/irs-pdf/iw2g.pdf

···

On Mon, 16 Aug 2010, HOHOHONDO wrote:

#5

This refers to a currency transaction report, and in fact the casino is required to start tracking well below $10K, in case you have multiple transactions within a single day that add up to $10K.

http://en.wikipedia.org/wiki/Currency_transaction_report

There is no direct link between W2Gs and CTRs, though lots of the former will generally lead to the latter.

···

On Mon, 16 Aug 2010, Jason Pawloski wrote:

Table games rules are different. I think the rule is if they cash out
$10,000 in chips or more, it gets reported to the IRS.

#6

This refers to a currency transaction report, and in fact the casino is
required to start tracking well below $10K, in case you have multiple
transactions within a single day that add up to $10K.

That seems ignore the prior requirement for a 300-to-1 payoff.

···

On 8/16/2010 3:27 PM, Lone Locust of the Apocalypse wrote:

#7

Of course it ignores it, because the 300-to-1 payoff thing has nothing to do with CTR requirements.

···

On Mon, 16 Aug 2010, MHS wrote:

On 8/16/2010 3:27 PM, Lone Locust of the Apocalypse wrote:

This refers to a currency transaction report, and in fact the casino is
required to start tracking well below $10K, in case you have multiple
transactions within a single day that add up to $10K.

That seems ignore the prior requirement for a 300-to-1 payoff.

#8

There have been many times when I have seen a payout of more than $600 at the tables and no forms were filled out.
  I do know that the $600 and 300-1 odds rules are in effect at NY Racetracks.

  Larry F.

···

--- In vpFREE@yahoogroups.com, David Silvus <djsilvus@...> wrote:

. On table games a W-2G is required (I believe) if the payout is over $600 AND on a wager that pays more than 300-to-1.

#9

Larry, my understanding is that the payout must be BOTH $600+ AND 300+-to-1 before a W2G is required from the casino on table games.

···

To: vpFREE@yahoogroups.com
From: lfcmja@verizon.net
Date: Sat, 21 Aug 2010 20:41:01 +0000
Subject: [vpFREE] Re: Taxable 4 aces

--- In vpFREE@yahoogroups.com, David Silvus <djsilvus@...> wrote:

. On table games a W-2G is required (I believe) if the payout is over $600 AND on a wager that pays more than 300-to-1.

There have been many times when I have seen a payout of more than $600 at the tables and no forms were filled out.
I do know that the $600 and 300-1 odds rules are in effect at NY Racetracks.

Larry F.

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

#10

David, you stated that in your original message - and, you are correct.

···

On 8/22/10, David Silvus <djsilvus@hotmail.com> wrote:

Larry, my understanding is that the payout must be BOTH $600+ AND 300+-to-1
before a W2G is required from the casino on table games.

To: vpFREE@yahoogroups.com
From: lfcmja@verizon.net
Date: Sat, 21 Aug 2010 20:41:01 +0000
Subject: [vpFREE] Re: Taxable 4 aces

There have been many times when I have seen a payout of more than $600 at
the tables and no forms were filled out.
I do know that the $600 and 300-1 odds rules are in effect at NY
Racetracks.

Larry F.

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

#11

For poker, the payout has to be $5001 to get a W2-G

···

________________________________
From: Luke Fuller <kungalooosh@gmail.com>
To: vpFREE@yahoogroups.com
Sent: Mon, August 23, 2010 4:47:44 PM
Subject: Re: [vpFREE] Taxable 4 aces

David, you stated that in your original message - and, you are correct.

On 8/22/10, David Silvus <djsilvus@hotmail.com> wrote:

Larry, my understanding is that the payout must be BOTH $600+ AND 300+-to-1
before a W2G is required from the casino on table games.

To: vpFREE@yahoogroups.com
From: lfcmja@verizon.net
Date: Sat, 21 Aug 2010 20:41:01 +0000
Subject: [vpFREE] Re: Taxable 4 aces

There have been many times when I have seen a payout of more than $600 at
the tables and no forms were filled out.
I do know that the $600 and 300-1 odds rules are in effect at NY
Racetracks.

Larry F.

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

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

#12

Actually, it is the payout - less, the buy-in - that needs
to be greater than $5000.

···

On 8/23/10, Joel Fink <joel0457@yahoo.com> wrote:

For poker, the payout has to be $5001 to get a W2-G

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