In a message dated 12/21/2002 1:01:04 AM Pacific Standard Time,
vpFREE@yahoogroups.com writes:
Date: Fri, 20 Dec 2002 18:25:17 -0500
From: "Jack CT" <meowmeow33@earthlink.net>
Subject: Withhold Taxes on W2I recently hit a royal at Mohegan Sun (Yes Virginia there is a Santa and,
at least for a moment, he was hanging out at an Indian Casino in
Connecticut) and I was asked if I would like to have taxes withheld from
the payoff. I had never been asked this question when signing a W2. I
realize Connecticut has some horrible tax laws regarding gambling
winnings...no deductions against winnings....but, regardless, I'm not sure
why someone would want taxes withheld.If you indeed end up owning taxes, why not pay on April 15? I suppose if
you are afraid that you will be broke on 4/15, of if you pay estimated
taxes, then a withholding at payout might make sense. Otherwise, why?
Any insights?
Suppose you didn't pay your estimated on time or have a habit of not paying
them. Technically you're subject to interest & penalties. Having it withheld
on a win might avoid being dinged.
Another way to make up for late or non-filing of estimated taxes is to get a
job & specify on W-4 that you want all or most of disposable earnings
allocated to tax withholding payments.
At least this used to work as IRS computers were not good at matching tax
liability & timing of payments. A thorough audit would reveal the timing
problems.
As I don't keep up on this area anymore, maybe someone with current knowledge
can comment on whether these "fixes" still work.
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