How much can a person win in a casino without paying taxes?

Discussion in 'Off Topic' started by hoyaguru, Dec 29, 2009.

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  1. hoyaguru

    hoyaguru Senior member

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    I've heard that if you hit a big jackpot at a casino, or if you have a good run at a table and win a bunch of chips, when you go up to the cashier window to cash out, they will give you some IRS paperwork to fill out, which they then submit to the IRS. When tax time comes around, if you don't declare these winnings, the IRS will know it. But, it is only above a certain amount. Last time I was in Atlantic City, I noiced the cash machines where you can cash out the tickets* from slot machines would only cash out up to $3000, if your ticket was for more than that you had to go to the cashier. So, I'm guessing $3000 is the magic number, but it could also be a limit so the cash machine doesn't run out of money too fast. So, does anyone know what the amount is?

    *Slot machines don't pay out in coins or tokens any more, they print out a ticket that shows your winnings, which you an feed into another machine, or stick into a cash out machine to get your money.





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    #1 hoyaguru, Dec 29, 2009
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  2. Mike Gayner

    Mike Gayner Diamond Member

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    Where I'm from you don't pay tax on windfalls, because getting lucky shouldn't be a taxable activity.
     
  3. hoyaguru

    hoyaguru Senior member

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    Well, I could be wrong, but I think it is considered capital gains, and everyone is SUPPOSED to have any and all gambling winnings on their taxes each year (though I doubt anyone does). So when someone makes a big amount, the casino "helps" them by having them fill out paperwork. The thing that bothers me about that is, say the magic amount is $5000. What if the gambler started off with $4000? How can the casino prove that it is all winnings?
     
  4. mmntech

    mmntech Lifer

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    The provincial governments in Canada own most of the casinos and lotteries here so winnings are not taxed at all. But, any interest you make on that money once it's in the bank can be taxed. Native reserves own the rest of the casinos, so they're tax free as well.
     
  5. Colt45

    Colt45 Lifer

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    Don't think you get charged here. But the house always wins, and they get taxed.

    So.. casinos win, govn't wins, most folk lose.
     
  6. Six

    Six Senior member

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    At one of the Indian casinos in San Diego, the magic number is $10,000 for table games. I know of a guy who won $180K one year, but didn't have to pay taxes on that...'cause he lost $200K that same year.
     
  7. mcurphy

    mcurphy Diamond Member

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    From http://www.bankrate.com/finance/money-guides/reporting-gambling-winnings.aspx


     
    #7 mcurphy, Dec 29, 2009
    Last edited: Dec 29, 2009
  8. bctbct

    bctbct Diamond Member

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    I believe in the US you will receive a 1099 on winnings over $600
     
  9. hoyaguru

    hoyaguru Senior member

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    I don't think it's that low, just last week I cashed out on a video poker machine for $1150. I put my ticket through one of the cash machines to get my money, but I think if it was as low as $600, they wouldn't allow you to use the cash machines to get your money, you'd have to go to the human cashier. I could be completely wrong here, but I think it's much higher.
     
  10. mugs

    mugs Lifer

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    They can win as much as they lost in the same year. Any more than that and you have to pay taxes. Not sure if you can carry over losses from previous years to cover future winnings like you can with capital gains.
     
  11. FoBoT

    FoBoT No Lifer

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    /facepalm

    the amount of tax you pay would depend on your entire income picture, not just what you win from a casino

    gambling winnings minus losses is part of your total annual income, how much tax you pay depends on all your deductions and credits etc etc
     
  12. hoyaguru

    hoyaguru Senior member

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    Yes, but my question is how much would you have to cash out at the cashier for them to pull out the Form W-2G (thanks mcurphy) right there at the casino. Up to a certain amount, they hand you your money and you walk away, over a certain amount, they pull out the paperwork, fill it out, and you have to sign it before they'll hand you your winnings.

    Next time I'm at the casino, I'll ask at the cashier cage, I was just wondering if anyone knew off the top of their head.
     
  13. FoBoT

    FoBoT No Lifer

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    that is withholding , not paying taxes

    this is why the federal govt. can bankrupt us all, they have everyone brainwashed
     
  14. Commish

    Commish Senior member

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    A single winning is now taxed when you win over $1499, it was $1199 until recently.
     
  15. Zebo

    Zebo Elite Member

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    Legally all winnings but in practice most people only report when casino asks for SS#
     
  16. Drakkon

    Drakkon Diamond Member

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    a W2-G is only triggered by a SINGLE bet not a series of bets. So because you sat at a machine or a few and racked up $1150 I'm guessing it wasn't a single bet on one machine on one hand that wont you over $600 at one clip. Theres also crazy rules about machines that use multiple betting lines or multiple hands at the same time. Now the casino may also factor in prior losses as well over the entire game if its a high limit machine, so that way every time a high roller hits something and wins over $600 on a single bet/line/hand they don't have to sign again and again.
     
  17. Sea Moose

    Sea Moose Diamond Member

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    In the land of Aus, you dont pay tax on gambling wins
     
  18. richardycc

    richardycc Diamond Member

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    this.
     
  19. PimpJuice

    PimpJuice Platinum Member

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    I have won 4K in one night before (my buddy won 6K sitting at the same table). We cashed out and received all $100 bills with no paperwork or anything regarding taxes.

    I did not report the income......pretty much because I've lost way more then that :)
     
  20. Abel007

    Abel007 Platinum Member

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    Nevermind. Got my numbers mixed up. Move along.
     
  21. ktehmok

    ktehmok Diamond Member

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    Mental note to self: use fake ID & SS# next time at casino.
     
  22. hoyaguru

    hoyaguru Senior member

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    I know it's been a long time since I started this thread, but I finally got an answer. I was at the Tropicana in Atlantic City a week or so ago, and hit a jackpot on one pull for $2000. A lady came over and turned off the bell on the machine, asked me some info, and said she would be back with my money. She brought back a form to fill out, which the casino will send to the IRS so I can pay taxes on my winnings. I asked her what the limit was, so a winner didn't have to fill out the form, and she told me it is $1200. She pointed out several machines where the top jackpot was $1199, she said that people like playing these machines, because if they hit the jackpot, they know they won't have to fill out the form. She also told me that this only counts on a single jackpot, in other words you could hit two smaller jackpots for $1000 each, totalling $2000, and you don't have to fill out the form.

    Another thing she told me was, you can contact the casino at the end of the year, and if you use one of their cards in the machines you are playing, they track your winnings and losses, so they can send you your stats showing exactly how much you've put into the machines over the past year. If you've lost more than you've won, you don't have to pay taxes on your winnings. I think for most people, this would be the case.
     
  23. EagleKeeper

    EagleKeeper Discussion Club Moderator<br>Elite Member
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    This only applies if you itemize on your taxes. Otherwise you pay tax on the "REPORTED" winnings even if you had any type of losses
     
  24. ElFenix

    ElFenix Elite Member<br> Super Moderator<br>Off Topic
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    because, you know, it's not like it's income that might be subject to a tax on income.
     
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