[atomicsoda]

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I think Atomicsoda has a point. Most people that I know that go to a casino usually lose in the long run. They do however have the ocassional win. Be it hitting a jackpot on a slot or hot run at some table game. These people never worry about the taxes on winning, unless they have to fill out a form (W2G i am assuming). I have even been told (not by a credible source) that this is why a lot of slot machine jackpots are just under $1200. By doing this they are avoiding a the mandatory reporting amount. Supposedly you have to fill out paperwork at the casino on any jackpot over $1200.

I realize that my sample size is small and that the information may be totally incorrect. Please do not flame. Just post corrections. Thanks in advance fro thiis. This is just information that I have been told by some people that I play in a home poker game that regualarly play casion slots. They view any winnings as "found money". Unless they have have to fill out paperwork at the casino when they collect their jackpot.

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I think $600 is the limit now. I noticed a casino in Vegas that capped the high hand jackpots at $599 for this reason. They pay it in chips and it is considered table stakes, so the cap avoids any IRS reporting issues and players don't need to worry about taxes on it.