B&M Jackpot Tax Info Requested

[MicroBob]

i know this belongs on a different forum but i am posting it here because i know there are some zoo members who are extremely tax knowledgeable. also, i wanted to brag a little, i'm pretty excited about the impending increase in my poker bankroll.

one of the casinos in my area has a free weekly football pool with a top prize of $2500. somehow i went 12-0 on the college games this week and missed the tie-breaker (total points in one of the games) by only 3. i don't believe i've seen a better score.....still, 2nd place is $1000 which wouldnt be too big of a let-down.

my guess is that they take taxes out of the $2500 prize. should i expect them to offer me a W-2 form OR the option to have the taxes taken out on the spot?? any other info i should know about to try to get the most out of this??

please use small words as i am completely tax incompetent (my Dad however is extremely knowledgeable so i am seekinmg advice from him as well).
they don't post the winners until wednesday (my birthday ironically enough) so i have a little time to strategize.

apologiez to those i've annoyed by posting in this forum....and thanks in advance to anyone able to provide their expertise.

[Cyndie]

For anything over 1199.99 you will receive a 1099G form from the casino. They will have you fill out some paperwork at the time you win, and will mail that to the IRS and you in January...before February first...to guarantee that IRS knows to look for you to report that income.

That is why you see so many slot payouts are $1199. Seems that there was some threshold at $600 too...but it has been a long time since I played in B&M events, but the casino will know, and take care of all the paperwork. Be sure to bring your social security card and ID with you. They will almost certainly want plenty of ID.

When I played in Vegas, and won a BBJ, they not only gave me a 1099G form, but they also withheld taxes there, 28% if I remember. I had to file the next year to get the money back. However, my local casinos never took anything out of a couple prizes in the up to $1200 range...I never won a local JP that was higher.

I think they like to hold the 28% until the tax year is over...because they get to use it interest free. So if they try to withhold...make a bit of a fuss and let them think their tip will suffer if they do. It might help.

[jek187]

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Be sure to bring your social security card and ID with you. They will almost certainly want plenty of ID.

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They will require 2 forms of ID. I was involved in a BBJ, but the 2nd form I used was just a dippy air force base pass. I got the impression that just about anything would work, so I'd imagine a credit card or library card would also work.

[pokerwhore]

i hit 4 of a kind in let it ride game at casino payed out about $4,500 , most was due cause I had a $25 bet in all 3 bet slots but part was part of progressive but I never was required to pay any taxes on it or fill out any forms.

I do know jackpots on slots though that take out some for taxes though.

[MicroBob]

i think a driver's license and casino player's card will work....you have to turn in both to turn in the entry...i also still have the receipt with the winning picks even though it's not necessary.

thanks for your thoughts.

unfortunate it appears there's little i can do to stop the tax-man from taking his immediate cut....but to claim a decent size win on a free-entry is still nice and i have little to complain about.

a very +EV game me thinks....although there is the actual effort involved with going in and filling out the form.

[jcx]

It actually is a 1099-MISC you will receive. 1099-G's denote government payments (Social Security for instance). When I have won tournaments in B&M casinos they wanted a picture ID & Social Security card. The casinos are only required to withhold tax on your win if you are not a US Citizen (This is for obvious reasons, as non-citizens would simply return home and not pay the tax) or you will not provide/cannot provide your SS#. A copy of the 1099-MISC will be mailed to you & the IRS by Jan 31 of the following year. If you've lost more than you won for the year your tax liability will be zero (Just be able to prove it). If you don't have any proof, get some quick. Pay the local racetrack a visit & collect a few discarded losing tickets. Make some ATM withdrawals while at the track. While not absolute proof of loss, it will lend credence to your arguement that your losses are greater than your winnings. Cash a check or two at your favorite casino. This will all help create a paper trail to support your position if the IRS ever challenges you.