Casinos reporting winnings

[joeboe2001]

I always thought the rule was that $600 and over had to be reported--I believe that is the cutoff used at racetracks and (MD) on winning Keno tickets.

If I do not get a form may I assume the Casino did NOT report my winnings?

[BKyef]

Foxwoods makes you fill out a WG form when you cash in a tournament. However they stated they do not file these with anyone. They are kept on file at FW until the IRS requests any forms for a certain person. At least that was what Mike Ward told me 3 years ago FWTW.

[21times20]

i am also a little concerned with the way harrah's properties handle tournament winnings

i recently was part of a 3 way chop at the HoB and the person in charge says they need someone to be the technical "winner" and that all it required was filling out a little more paperwork. since i had the chiplead i said i would and then immediately began to regret it and asked if it had any tax implications as i certainly did not want to be paying taxes on money i didn't actually win and was told no, it had nothing to do with taxes

anyway, as we are receiving our winnings instead of distributing it to us in the manner which we agreed to chop they give us 3rd, 2nd, and 1st place prizes and tell us to split the money up ourselves, which is no big deal, however I am also gived a W-2G for the full first place prize which is about $240 more than my actual winnings

upon noticing this i ask the person in charge why i am getting a W-2G for money i didn't win and he again assures me that nothing is being reported to the IRS and that this is just for their records

im fairly certain the $840 in winnings for a $40+10 buy-in tournament is well under the amount at which a casino is required to report the winnings to the IRS so it seems conceivable that it is not being reported, however the fact that i am actually being issued a tax form certainly gives me my doubts, it certainly also seems conceivable that the floor/tournament director is either misinformed or just telling me what i want to hear so he can get his paperwork done and i will leave

on the form itself it states "This is important tax information and is being furnished to the Internal Revenue Service."

does anyone know if it is even legal/possible for a casino to issue someone a W-2G and then NOT provide a copy of it to the IRS?

[Bremen]

[ QUOTE ]
recently was part of a 3 way chop at the HoB and the person in charge says they need someone to be the technical "winner" and that all it required was filling out a little more paperwork.

[/ QUOTE ]
Someone once told me this was because of casino control. Basically payout structures for tournaments are approved by CC. A chop changes the structure of payouts which is prohibited by CC. So the casino has to be able to tell the CC that so-and-so won first, so-and-so second, right on down the list.

Not sure if this is true. Any idiotic thing that happens in AC is blamed on casino control in one way or another.

[bigfishead]

[ QUOTE ]
i am also a little concerned with the way harrah's properties handle tournament winnings

i recently was part of a 3 way chop at the HoB and the person in charge says they need someone to be the technical "winner" and that all it required was filling out a little more paperwork. since i had the chiplead i said i would and then immediately began to regret it and asked if it had any tax implications as i certainly did not want to be paying taxes on money i didn't actually win and was told no, it had nothing to do with taxes

anyway, as we are receiving our winnings instead of distributing it to us in the manner which we agreed to chop they give us 3rd, 2nd, and 1st place prizes and tell us to split the money up ourselves, which is no big deal, however I am also gived a W-2G for the full first place prize which is about $240 more than my actual winnings

upon noticing this i ask the person in charge why i am getting a W-2G for money i didn't win and he again assures me that nothing is being reported to the IRS and that this is just for their records

im fairly certain the $840 in winnings for a $40+10 buy-in tournament is well under the amount at which a casino is required to report the winnings to the IRS so it seems conceivable that it is not being reported, however the fact that i am actually being issued a tax form certainly gives me my doubts, it certainly also seems conceivable that the floor/tournament director is either misinformed or just telling me what i want to hear so he can get his paperwork done and i will leave

on the form itself it states "This is important tax information and is being furnished to the Internal Revenue Service."

does anyone know if it is even legal/possible for a casino to issue someone a W-2G and then NOT provide a copy of it to the IRS?

[/ QUOTE ]

Your going to have to report this income. A W2-G was issued. Case closed.

Harrahs corp is a bunch of total idiots that don't know the known practices in poker tournaments. And Harrah's tournament directors are just "yes men" to their bosses accordingly.

As I understand it from a card player article from that gaming/tax guy attorney that writes for them a few years ago, 300 times the buy-in amount is the threshold for IRS W2G reporting. Just as it is in sportsbooks. (gosh now I'm wondering if it was 600 times)

There are many tournaments out there where the tournaments pay you in chips. They take down some info but no W2G's are issued and it isnt directly reported to the IRS. These amounts of chips can be well into the 5 digits, even 6 digits, with no W2G's. This has been going on for many years with no problems. Yet Harrahs in their infinite wisdom, issues W2G's on any amount over $600. Even in the new Cesars LV $200 buy-in events you get one for $600 or more.

Recently I won a $110 ($70+$40rb) event in LV and was issued chips. No info other than my name was taken. No address SSN or anything. I got chips. Cashed at the cage, no big deal.

DONT PLAY AT HARRAHS !! Unless your willing to pay or file on these issues. Chops dont matter to them in such case either. You get W2G for the place you take not the amount.

[Beck]

I took first place in Stardust weekly freeroll yesterday, and was told that since it was above 600 (won 1000), i was to be reported.

And since I'm not a US citizn they withheld 30%, which sucks.... Now I'm just wondering if I can get that back if I show enough loosing tickets playing the horses or something.

[psandman]

[ QUOTE ]
[ QUOTE ]
i am also a little concerned with the way harrah's properties handle tournament winnings

i recently was part of a 3 way chop at the HoB and the person in charge says they need someone to be the technical "winner" and that all it required was filling out a little more paperwork. since i had the chiplead i said i would and then immediately began to regret it and asked if it had any tax implications as i certainly did not want to be paying taxes on money i didn't actually win and was told no, it had nothing to do with taxes

anyway, as we are receiving our winnings instead of distributing it to us in the manner which we agreed to chop they give us 3rd, 2nd, and 1st place prizes and tell us to split the money up ourselves, which is no big deal, however I am also gived a W-2G for the full first place prize which is about $240 more than my actual winnings

upon noticing this i ask the person in charge why i am getting a W-2G for money i didn't win and he again assures me that nothing is being reported to the IRS and that this is just for their records

im fairly certain the $840 in winnings for a $40+10 buy-in tournament is well under the amount at which a casino is required to report the winnings to the IRS so it seems conceivable that it is not being reported, however the fact that i am actually being issued a tax form certainly gives me my doubts, it certainly also seems conceivable that the floor/tournament director is either misinformed or just telling me what i want to hear so he can get his paperwork done and i will leave

on the form itself it states "This is important tax information and is being furnished to the Internal Revenue Service."

does anyone know if it is even legal/possible for a casino to issue someone a W-2G and then NOT provide a copy of it to the IRS?

[/ QUOTE ]

Your going to have to report this income. A W2-G was issued. Case closed.

Harrahs corp is a bunch of total idiots that don't know the known practices in poker tournaments. And Harrah's tournament directors are just "yes men" to their bosses accordingly.

As I understand it from a card player article from that gaming/tax guy attorney that writes for them a few years ago, 300 times the buy-in amount is the threshold for IRS W2G reporting. Just as it is in sportsbooks. (gosh now I'm wondering if it was 600 times)

There are many tournaments out there where the tournaments pay you in chips. They take down some info but no W2G's are issued and it isnt directly reported to the IRS. These amounts of chips can be well into the 5 digits, even 6 digits, with no W2G's. This has been going on for many years with no problems. Yet Harrahs in their infinite wisdom, issues W2G's on any amount over $600. Even in the new Cesars LV $200 buy-in events you get one for $600 or more.

Recently I won a $110 ($70+$40rb) event in LV and was issued chips. No info other than my name was taken. No address SSN or anything. I got chips. Cashed at the cage, no big deal.

DONT PLAY AT HARRAHS !! Unless your willing to pay or file on these issues. Chops dont matter to them in such case either. You get W2G for the place you take not the amount.

[/ QUOTE ]

Whats the difference if they give you a W2G or not, everyone here reports all their gambling income like they are supposed to anyway.

[Cooling Heels]

[ QUOTE ]
I took first place in Stardust weekly freeroll yesterday, and was told that since it was above 600 (won 1000), i was to be reported.

And since I'm not a US citizn they withheld 30%, which sucks.... Now I'm just wondering if I can get that back if I show enough loosing tickets playing the horses or something.

[/ QUOTE ]

US tax law allows one to offset reported gambling winnings with gambling losses. You need to investigate Danish tax practices to determine if it's possible in Denmark.

Are you a resident of Denmark or a Danish citizen living in the US?

[21times20]

"Whats the difference if they give you a W2G or not, everyone here reports all their gambling income like they are supposed to anyway."

i see my original post quoted in your reply and am truly puzzled as to why you were unable to read it, in case you are physically unable to read the many thousands of words in my original post let me quote the part that answers your question, and in doing so correct a spelling mistake (transposition of given/issued) i made

"however I am also given a W-2G for the full first place prize which is about $240 more than my actual winnings"

do you understand why i might just have a slight problem with this or do you just go around looking for posts concerning taxes, read the subject line, and make what i assume you think are clever, sarcastic comments about people not reporting their gambling winnings?

[Nut4Dawgs]

This question keeps coming up in this and other forums. If you go there and search "gambling," you get 443 references.

I just copied this from the W-2G form .pdf file. It comes directly from the back of the form. Add "1099" to your search and you'll find a .pdf file with all the instructions (89 pages) for that form.

[ QUOTE ]
Form W-2G

Instructions to Winner
Box 1. The payer must furnish a Form W-2G to you if you receive:

1. $600 or more in gambling winnings and the payout is at least 300 times the amount of the wager (except winnings from bingo, keno, and slot machines);
2. $1,200 or more in gambling winnings from bingo or slot machines;
3. $1,500 or more in proceeds (the amount of winnings less the amount of the wager) from keno; or
4. Any gambling winnings subject to federal income tax withholding.

Generally, report all gambling winnings on the “Other income” line of Form 1040. You can deduct gambling losses as an itemized deduction, but you cannot deduct more than your winnings. Keep an accurate record of your winnings and losses, and be able to prove those amounts with receipts, tickets, statements, or similar items that you have saved. For additional information, see Pub. 17, Your Federal Income Tax, Pub. 505, Tax Withholding and Estimated Tax, and Pub. 525, Taxable and Nontaxable Income.

Box 2. Any federal income tax withheld on these winnings is shown in this box. Federal income tax must be withheld at the rate of 25% on certain winnings less the wager.

If you did not provide your federal identification number to the payer, the amount in this box may be subject to backup withholding at a 28% rate.

Include the amount shown in box 2 on your Form 1040 as federal income tax withheld.

Signature. You must sign Form W-2G if you are the only person entitled to the winnings and the winnings are subject to regular gambling withholding.

Other winners. Prepare Form 5754, Statement by Person(s) Receiving Gambling Winnings, if another person is entitled to any part of these winnings. Give Form 5754 to the payer.



Instructions for Payers
General and specific form instructions are provided as separate products. The products you should use to complete Form W-2G are the 2006 General Instructions for Forms 1099, 1098, 5498, and W-2G and the 2006 Instructions for Forms W-2G and 5754.

To order these instructions and additional forms, call 1-800-TAX-FORM (1-800-829-3676) or visit the IRS website at www.irs.gov.

Due dates. Furnish Copies B and C of this form to the winner by January 31, 2007. File Copy A of this form with the IRS by February 28, 2007. If you file electronically, the due date is April 2, 2007.

Gambling withholding. You may be required to withhold federal income tax from cash or noncash gambling winnings. See the 2006 Instructions for Forms W-2G and 5754 for the rates.

Foreign winners. Use Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, to report gambling winnings paid to nonresident aliens and foreign corporations. See the Instructions for Form 1042-S. You may be required to withhold federal income tax at a 30% rate. See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

Form 5754. If the person receiving the winnings is not the actual winner or is a member of a group of winners, see the instructions for Form 5754, Statement by Person(s) Receiving Gambling Winnings, in the Instructions for Forms W-2G and 5754 revised in 2006.

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