Big tournament wins and taxes...

[Garland]

Hello,

I just experienced my first big tournament payout of $5000. I was fully expecting the casino to take my name, driver's licence and such in order to report taxes, but they didn't.

I know I'll be reporting all my winnings as I keep records of all my poker transactions, but I'm wondering if this is standard. Perhaps this is state dependent? I live in California.

I think in Las Vegas, if you finish in the money over $600 they will take your name, address and everything so they can report it or if you can't (or are unwilling) to provide the info they take a certain portion of the winnings up front. Maybe someone in Vegas can verify this for me.

What are some other experiences and laws with cashing out big and paying Uncle Sam?

Garland

[SossMan]

This depends on the cardroom. The oaks doesn't, LCs doesn't, GC doesn't, but I know a number of SoCal Casinos will W-2G you.

[cferejohn]

[ QUOTE ]
This depends on the cardroom. The oaks doesn't, LCs doesn't, GC doesn't, but I know a number of SoCal Casinos will W-2G you.

[/ QUOTE ]

I wondered if LC did for their $1000 buy-in Battle of the Bay final event? They must have done it for the $5000 WPT event from last year...

[SossMan]

[ QUOTE ]
I wondered if LC did for their $1000 buy-in Battle of the Bay final event?

[/ QUOTE ]

I was going to ask you, but we all know how you did in that tourney. [img]/images/graemlins/blush.gif[/img]

[PokerNeal]

Garland buddy:

As good as you are -- are you not one of the rest of us where total losses exceed total winnings? :-) If such is the case there is a simple gambling winnings form to file where you show precisely that and not have to pay a dime. Now if you are of the caliber where you routinely take down 5-10 G's a week than you need to keep an itemized list of your winnings and losses and be able to show to IRS if audited.

Every gambling establishment is legally obliged to provide you with the W-2G for winnings over $1200. If they didn't do it and took no information down on you then you really have not won that money. That indeed would be strange.

Neal

Neal

[cferejohn]

[ QUOTE ]
Every gambling establishment is legally obliged to provide you with the W-2G for winnings over $1200. If they didn't do it and took no information down on you then you really have not won that money. That indeed would be strange.


[/ QUOTE ]

I have won more than that a couple times and never even been asked for my last name...

[PokerNeal]

I want to go play where you play! :-)

[Troy92]

It doesn't matter if you end up with a net profit or net loss on the year. You still should document your wins and losses for each session. Otherwise, you may find yourself with a larger tax burden than need be. The burden of proof is on the taxpayer. The best way to protect yourself is with good recordkeeping.

[gmunny]

I recently won some $ in vegas and the tourney director told my wife that they will pay the winners in casino chips so they won't have to issue the w2g. Not sure if that was correct, but I wasn't gonna argue. [img]/images/graemlins/cool.gif[/img]
G$