Taxes?

EasyRhino

EasyRhino

Well-Known Member
I got a little confused about taxes, but here's my understanding of the situation:

Winnings at things like slots over a certain amount may require tax reporting forms to be filled out by the casino, and even might have taxes withheld.

Winnings at the tables never require reporting by the casinos, or have taxes withheld.

However, all gambling winnings, including table games, are still taxable. Just like income from bribes or drug dealing is still taxable, if not generally reported. If you're itemizing deductions already, you can deduct your gambling losses, if you keep a pretty thorough session diary.

... is that about right?

... who here is scrupulously rigorous about their taxes? (no need to volunteer if you're not) :D
 
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shadroch

Well-Known Member
Tax avoidence is an American tradition.
Tax evasion is a felony.

I'm not sure your statement about winnings at tables is correct.If you hit a royal flush,for example,in Carribean Stud,I'm fairly sure you need fill out a tax form.Or win a big tournament.I believe the threshold is some multiplier of your original bet.Ie-the bigger your bet,the more you can collect without being subjected to paperwork.
 
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kender

Active Member
10000

I was under the impression from various writings (although I am by no means sure) that anytime you cash-out for 10,000 or more dollars you need to fill out a tax form. This would include large one sitting slot winnings or any time you hit any progressive that pays out more than 10,000. It would also include any trips to the cashier that are in excess of that amount.

That's what I thought.
 
EasyRhino

EasyRhino

Well-Known Member
The $10,000 cash thing is a CTR, currency transaction report. It's not so much a tax device as a money-laundering tracker. For instance, if you just walked up to a casino cashier wtih $10000 in twenties, and changed them for $100s, it would also trigger a CTR, even though there was no loss or gain. (It would also probably raise a lot of suspiscion)

And Shadroch, I think you're probably right about super-jackpot table games possibly also triggering a tax-reporting form. Since I don't play Caribbean stud, I guess by "table games", I really mean "blackjack".
 
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kender

Active Member
Ctr

right, CTR. While their use may be for "money laundering checks," the IRS still gets a copy and still knows it's you that made the transaction. So, I'm sure it would get back to your taxes in one way or another. I could be wrong, but just my thoughts.

as for anything under that $10,000 (which I'm betting the IRS already knows about), I'll bet you have to claim it as income on your taxes, or if you don't, and it's fairly substantial, and you get audited....I bet the sheit and fan meet.

I just claim any income from gambling (since rigorous records are kept) for the year under the "other" category. Since I've just started and only had to do it once, I don't think that I necessarily had to, but I like to be safe.

please feel free to correct me if I'm wrong, I do not claim to be an authority or even someone whose done any research on this. Just thought I'd add my 2 cents (hope that doesn't get taxed?!?)
 
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Cass

Well-Known Member
kender said:
right, CTR. While their use may be for "money laundering checks," the IRS still gets a copy and still knows it's you that made the transaction. So, I'm sure it would get back to your taxes in one way or another. I could be wrong, but just my thoughts.

as for anything under that $10,000 (which I'm betting the IRS already knows about), I'll bet you have to claim it as income on your taxes, or if you don't, and it's fairly substantial, and you get audited....I bet the sheit and fan meet.

I just claim any income from gambling (since rigorous records are kept) for the year under the "other" category. Since I've just started and only had to do it once, I don't think that I necessarily had to, but I like to be safe.

please feel free to correct me if I'm wrong, I do not claim to be an authority or even someone whose done any research on this. Just thought I'd add my 2 cents (hope that doesn't get taxed?!?)
Click to expand...

I had to fill out a CTR a couple months ago, I tried to have my GF cash out some of my chips, but i got caught since they track who leaves the tables with what.
 
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kender

Active Member
what did they say

What did they say when you had your gf try to cash out some? That's interesting, were they rude about it? Probably not, just wondering how the casino handles it. As I've never had to deal with that (BR waaay to low to worry about leaving the table with 10k).
 
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shadroch

Well-Known Member
CTRs are no big deal.What you NEED to avoid are the SARs. Suspicious Activity Reports.
CTRs are very common and end up on some backlogged computer.SARs ,by prodical,need to followed up on by a Treasury Agent,not the IRS.
Situations such as the one Cass described can trigger an SAR. They usually don't but they can.So can being rude to the cashier or any number of situations. I don't think there is are clear cut rules,its just what a normal person would feel is a suspicious activity that is intended to get around the rules for cash transactions.
 
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ortango

Well-Known Member
ITs funny how how nobody actually answered the original question: if they pay taxes on their gambling wins or not. Well, here is my answer as well as a couple important questions for those who are in the know.

A:No, I do not pay taxes on my gambling wins.
Reason: I've only been an AP for 2 months so of course I've only been winning for 2 months.

Now I have a couple questions...

Q1: What about money made in foreign casinos? From my knowledge they do not fill out any CTRs, and I doubt IRS seeks out foreign casino income, especially if the winnings are kept in a foreign bank account under another persons name.

Q2: Is the whole system fricking broke or what? I sat around thinking about this the other day, how messed up the system is. Example: I earn 100k this year in gambling, and like a good citizen, report it and pay a ridiculous amount of taxes on this "income". However, come April 15, I've already lost all of this money gambling, but stilll ended up paying taxes, and as sure as asians always take even money, nobody pays ME for LOSING money! So say the same thing happens almost every year. I have huge "income" to pay taxes on, while I end up losing it all back later. So basically money is switching hands between the casino and I, and both of us are getting F$#@ED out of our income while no one has actually made any money. Am I missing something here or is this system messed up? Someone explain this to me please, thanks.

:cow:
 
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shadroch

Well-Known Member
You make 100k gambling and have not taken the time to learn IRS regs?
You can deduct any losses you incur gambling from your gambling winnings.
Its that simple.
You win 100,000 on Day 1,lose 100,000 on day 2,your net winnings are zero.

As for your first question-you are responsible for paying taxes on any income earned anywhere.IRS doesn't care where the money is earned,it wants its share.
 
sagefr0g

sagefr0g

Well-Known Member
ortango said:
Q2: Is the whole system fricking broke or what? I sat around thinking about this the other day, how messed up the system is. Example: I earn 100k this year in gambling, and like a good citizen, report it and pay a ridiculous amount of taxes on this "income". However, come April 15, I've already lost all of this money gambling, but stilll ended up paying taxes, and as sure as asians always take even money, nobody pays ME for LOSING money! So say the same thing happens almost every year. I have huge "income" to pay taxes on, while I end up losing it all back later. So basically money is switching hands between the casino and I, and both of us are getting F$#@ED out of our income while no one has actually made any money. Am I missing something here or is this system messed up? Someone explain this to me please, thanks.

:cow:
Click to expand...
same sort of thing can happen with investments in the stock market.
 
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nc-tom

Well-Known Member
shadroch said:
You make 100k gambling and have not taken the time to learn IRS regs?
You can deduct any losses you incur gambling from your gambling winnings.
Its that simple.
You win 100,000 on Day 1,lose 100,000 on day 2,your net winnings are zero.

As for your first question-you are responsible for paying taxes on any income earned anywhere.IRS doesn't care where the money is earned,it wants its share.
Click to expand...
My understanding of this is as follows. shad your right you can deduct any gambling loses up to the amount of claimed gambling wins.It is also correct that any earned income from any source is supposed to be reported to the IRS.While I believe it is also correct that if you win at table games amounts of $10000 or over you will recieve at CTR as well as a tax form called w2-g.My wife has won slot jackpots and I have come to learn that you will have to pay taxes on any slot winnings of over $1200.00. Every time she has won a jackpot over that amount she has recieved a w2-g so they really screw slot players.Also I believe when reporting gambling winnings they should be reported in the section on the tax form under "gambling winnings" not "other income". As far as reporting all my gambling well f#@k that no way.
 
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mdlbj

Well-Known Member
When your over 10k they are tracking your play.
Dont stop buy any means. This is a draw back of getting ahead; yet, If you walk away with the chips. No CTR. Cash in some of your winnings next trip, more later..

Fugg them if they are trying to hand you paper work, you have more important things to do with your time.
 
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Cass

Well-Known Member
supercoolmancool said:
Can you really leave the casino with their chips? Prairies Edge Casino said that was illegal.
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This is off topic, but I just got backed off at P.E. Over the last year I won around 35k about half of that coming from there 3card poker promo.. It was funny because when I got booted me and one other counter were the only people at the table. They let him keep playing, but i think they like him because he plays slots and blackjack.
 
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mdlbj

Well-Known Member
supercoolmancool said:
Can you really leave the casino with their chips? Prairies Edge Casino said that was illegal.
Click to expand...
Its legal tender, its your money in Clay form or paper.. If they call security, tell the security guard that you want to leave. He or she will be obligated to escort you out. Pocket your chips. Never leave the table without your chips weather you color up or not. Dont let them bully you... Yada yada.. If you dont want to pay taxes, stop before you take in more than 10+k. But why stop there.

When their perception is that you are a high roller, they will respect that.
 
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mdlbj

Well-Known Member
There are hundreds of people who walk out of casinos with that much in winnings every day. If your really feel the need, yeah put it under other earnings. But, wait until the end of the year to do so, you may not have that much in earnings over time. Dont stress it dude.. Use it to build your bankroll.
 
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shadroch

Well-Known Member
supercoolmancool said:
Do you think the IRS would audit someone for 5K in winnings?
Click to expand...
There are different ways you can end up being audited,and several different types of audits as well.
The most common way people get audited is that the computers randomly pick tax returns to be audited.Somewhere around one half of one percent of all returns are selected this way.
Another way that is much more common is when the IRS cross-checks forms like W-1099s and W-G2s against returns and you pop up as having recieved them but not declaring them on your 1040.Its a fairly common occurence and the pain is not too severe.
Then you have your criminal investigtion audits that are just as they sound. You don't want to be on the recieving end of these.
 
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