#1
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I got taxed 3% on Video Poker winnings in Tunica . . .
I was playing $25 * 5 Jacks or better, and got quads, which paid $3125.
When the casino employee came to pay it, they said that the state of Mississippi taxes 3% on VP single hand winnings over $1200. Has anyone else heard of this, and are there similar taxes in other states? 3% on VP hands > $1200 seems like it reduces EV **a lot**. I stopped playing as soon as I realised this tax existed. |
#2
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
I doubt Mississippi has a tax that specific on video poker. Instead, you probably went over the threshold for some automatic withholding of state income tax.
Even if the payout were reduced by 3% on quads or better, it wouldn't reduce your EV a lot. If you don't change your strategy at all, and are playing 9/6 JoB, you are returned 8.44% of your initial bet from hitting quads or better. You lose 3% of that, or 0.25%, so it increases the house advantage from 0.46% to 0.71%. According to WinPoker, you should change your strategy slightly, but the return with optimal play would still be 99.29%. |
#3
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
I’ve only played in Nevada so I can’t address the state tax issue.
I can tell you that the casino must issue a federal tax form for all slot payouts over $1200; that’s the reason for the large number of machines with $1199 jackpots. Players who are not US citizens will have taxes withheld from the payout. US Citizens do not have money withheld but the payout is reported to the IRS. |
#4
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
[ QUOTE ]
According to WinPoker, you should change your strategy slightly, but the return with optimal play would still be 99.29%. [/ QUOTE ] Oh wow, I'd assumed my EV went from 99.52% to like 98.75%. Thanks for running the numbers through. |
#5
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
Don't forget to deduct your losses, which I would assume would be substantial if you're playing $25/spin.
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#6
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
Unless you're playing the game every waking hour for the rest of your life, and you played absolutely perfectly, then those numbers are meaningless in the short term anyway. You should be playing Bonus Poker and some of the derivatives, those are where the BIG winners are. There's nothing on JoB worth playing for other than the royal.
Also you should be starting on a much lower denomination so that you can progress up as you lose so that when a big winner pops, you've actually recovered your losses plus notched some profit. |
#7
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
Mississippi taxes 3% on all slot or video gaming machines. It is a straight 3%. The catch is Mississippi does not want to see your winnings or losses on your taxes you only claim your earnings from all your other income. You don't even get a slip for state from the casino, only federal.
Big Steve [img]/images/graemlins/cool.gif[/img] |
#8
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
You may be able to deduct the amount paid to Mississippi from your own state income tax. This varies from state to state and might be outdated, but it can't hurt to ask a local accountant.
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#9
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
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#10
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Re: I got taxed 3% on Video Poker winnings in Tunica . . .
Actually this article from the Mississippi State Tax Commission shows that this is tax withholdings, not a fee as indicated in the previously mentioned article.
http://www.mstc.state.ms.us/taxareas...s/ireg1122.pdf |
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