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Author: [General Discussion] Topic: Any help with ONE THOUSAND DOLLAR casino drawing? Vanzack, Lippsman,anyone?
samuelsosa send a private message View Space | Friends | Playbook |
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#1
Posted: 4/1/2012 2:04:23 AM
Hey guys last year in ATLANTIC CITY @ Harrahs @ the Poker room...my name was called in a drawing for 1000$ cash. I won. Now months later I received a letter in the mail stating I won 1000$ cash @ Harrahs. 

I also found out that @ Taj Mahal I lost 400$ last year.

What happens here? Do I have to pay taxes on the 1000$?
Do I have to pay taxes on 600$ [1000-400]?

Do I not pay nothing because it was only 1000$?

Some help would be appreciated.

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#2
Posted: 4/1/2012 2:17:03 AM
  I'd ignore the letter since you lost money at the Taj.
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#3
Posted: 4/1/2012 1:36:58 PM

Did you fill out a W2-G when they gave you the cash?

 

In addition to the winnings I get in horse racing, I have won twice in other states; a casino in OK, and a sportsbook in Vegas.  Both instances required all the IDs and numbers before getting any money.

I may not be on the same page, but it sounds like the similar kind of question I've had when I do my taxes.  Basically, you can only claim your LOSSES up to the amount of any winnings.  You can never gain an advantage in losing.  For example, if you HIT a $2500 slot, but lost $5000 doing so--you would only be able to claim losses of 2500.  On the other hand, if you were lucky enough to win $5000, but only lose $2000...you can certainly claim the losses up to the 5k.

Hope that helps.  I'm only 30, but basically EVERY YEAR since I've been legally able to claim my gambling--this was the strategy.  I've used H&R, private CPA, and my own filing...never had an issue. 

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#4
Posted: 4/1/2012 2:42:07 PM
QUOTE Originally Posted by DUDE-I-TOLD-YOU:

Did you fill out a W2-G when they gave you the cash?

 

In addition to the winnings I get in horse racing, I have won twice in other states; a casino in OK, and a sportsbook in Vegas.  Both instances required all the IDs and numbers before getting any money.

I may not be on the same page, but it sounds like the similar kind of question I've had when I do my taxes.  Basically, you can only claim your LOSSES up to the amount of any winnings.  You can never gain an advantage in losing.  For example, if you HIT a $2500 slot, but lost $5000 doing so--you would only be able to claim losses of 2500.  On the other hand, if you were lucky enough to win $5000, but only lose $2000...you can certainly claim the losses up to the 5k.

Hope that helps.  I'm only 30, but basically EVERY YEAR since I've been legally able to claim my gambling--this was the strategy.  I've used H&R, private CPA, and my own filing...never had an issue. 

They gave me one little piece of paper to write my name address and social security. I could of wrote down 123456789 and I would of gotten the $, no scan of my numbers [immediately at least, no W2-G form]....im not sure what to do. according to you worst case I can file 1000 IN WINNINGS, ALSO DECLARE 400 IN LOSSES [TAJ MAHAL] and worst case Id have to pay taxes on the 600$? Thanks for your help , any other people?
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#5
Posted: 4/1/2012 2:43:11 PM
I could of lost the 1000$ on 1 hand of blackjack immediately after I received the $....why do I have to pay taxes on that 1000$ 

I thought the casino number was 10k 
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#6
Posted: 4/1/2012 3:20:24 PM

Heres the deal.

The US govt expects you to pay taxes on all gambling activity, and record and file all gambling activity.  Period.

A W2G is filed when you win at least $600 and the wager is 300-1 or more.   You need to find out if you were served a W2G.  The 10K form is a FINCEN report, and is not related directly to the IRS - it simply says that you had 10k in currency on you at any given time - which in this case you didnt.  Sounds like you got a W2G because it was over 600 bucks and your odds were infinite (you paid nothing and won 1k).

On your 1040, you are supposed to list all gambling winning sessions on line 21 (other income).  Then, you are supposed to deduct all losing sessions on Schedule A of your deductions.  What is a session?  Who the darn knows - the IRS doesnt define it - and it is almost up to interpretation.

But in your case, if all you did all year was make 1k in this drawing, and lose 400 bucks at the Taj - you would list the 1k on line 21 and the 400 bucks on schedule A and it would net to 600 bucks.

If there was no W2G, you would have absolutely no problem keeping this all to yourself as most gamblers do - but with the W2G, you have to report it somewhere.  The IRS knows you won it - and will be looking for it on your 1040.  Could you write off a full 1k on your deductions and get away with it?  Certainly.  Just up to you - do you want to be the 1 in a million who gets caught, or do you want to just pay taxes on 600 bucks and forget about it.  Your choice.

 

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#7
Posted: 4/1/2012 3:41:26 PM
To be honest, I don't remember if It was a W2G....is a W2G given to the person 9,999 of 10,000 times by casinos? Is it possible that I wasnt given the form? Has that ever happened? Even if as you say it should be given on all winnings over 600 at 300:1 or in my case?


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#8
Posted: 4/1/2012 3:47:19 PM
Van, I appreciate the help very much so. Offering great legal advice is impossible to come by for me. 

I looked up a W2G FORM 

and i got this

Now the letter I recieved in the mail from HARRAHS looks just like it but instead of where it says in the top right FORM W-2G 

MY FORM SENT IN THE MAIL SAYS

2011
FORM 1099-MISC
Miscellaneous Income
Copy B- For Recipient.

Am I going to have to pay taxes, or am I in the clear? Any other info you need please let me know. Thanks again.


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#9
Posted: 4/1/2012 3:53:08 PM
I basically received this in the mail [not mine, but close] in the mail from Harrahs.

Only 3 of the boxes are filled in.

OTHER INCOME with $1,000
PAYER'S FEDERAL ID NUMBER 
and RECIPIENTS ID NUMBER.

Now I have the feeling MISCELLANEOUS INCOME is another word of W2G 
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#10
Posted: 4/1/2012 5:19:20 PM
I must be a bad american. Because I would of thrown that damn paper away without even a second thought...
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#11
Posted: 4/1/2012 5:22:58 PM
QUOTE Originally Posted by samuelsosa:

Van, I appreciate the help very much so. Offering great legal advice is impossible to come by for me. 

I looked up a W2G FORM 

and i got this

Now the letter I recieved in the mail from HARRAHS looks just like it but instead of where it says in the top right FORM W-2G 

MY FORM SENT IN THE MAIL SAYS

2011
FORM 1099-MISC
Miscellaneous Income
Copy B- For Recipient.

Am I going to have to pay taxes, or am I in the clear? Any other info you need please let me know. Thanks again.


You got a 1099-MISC - which is the same as a contractor or anyone else who works to receive money.  This must be because you didnt put anything at stake when you won, you just won a sweepstakes which is not gambling.

Short answer - YES - this is income.  This is income like a W2 or a 1099 from an employer.  This is NOT gambling income, and you cannot write off gambling losses against this.  THIS IS STRAIGHT UP INCOME LIKE YOU EARNED IT AT A JOB.

So in short, this will be part of your income listed on your 1040, and yes, you will pay taxes on it.  No way around it.

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#12
Posted: 4/1/2012 5:25:05 PM
QUOTE Originally Posted by JOHNNYTUNDER:

any wins over $600 you must claim but mostlikely can write off showing proff of loses get hard copy from the house of all your plays !

I hope when you play table games you show your card when you start to play show the cash paid in and when you get off table also show the win or loss !

Wrong.

You have to pay taxes on any gambling wins, even if it is 50 cents.

And in his case - it is not even gambling income.  It is regular income.  He got the same form you would get if you worked for Harrahs as a contractor.  In other words, the guy who comes and fixes the elevator for 50 bucks an hour got the same 1099 you got from Harrahs.  It is income, and the IRS gets a copy of all 1099's and will expect to see it listed on your 1040.

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#13
Posted: 4/1/2012 5:33:10 PM
QUOTE Originally Posted by JOHNNYTUNDER:

any wins over $600 you must claim but mostlikely can write off showing proff of loses get hard copy from the house of all your plays !

I hope when you play table games you show your card when you start to play show the cash paid in and when you get off table also show the win or loss !

sure didnt take you long to create another alias did it? SAF
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#14
Posted: 4/1/2012 5:45:41 PM
QUOTE Originally Posted by vanzack:

Wrong.

You have to pay taxes on any gambling wins, even if it is 50 cents.

And in his case - it is not even gambling income.  It is regular income.  He got the same form you would get if you worked for Harrahs as a contractor.  In other words, the guy who comes and fixes the elevator for 50 bucks an hour got the same 1099 you got from Harrahs.  It is income, and the IRS gets a copy of all 1099's and will expect to see it listed on your 1040.

Thanks for your help Vanzack. I never file taxes as I get paid off the books in a family business. So my income for the year will be exactly THIS 1000$ HARRAHS drawing. Does this change anything? If it doesnt and I have to pay do you have any rough estimate for NEW YORK STATE? Will I have to pay 50%? Is there any way around this? 
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#15
Posted: 4/1/2012 5:49:20 PM
Any other advice you can give me? As you said I cant deduct anything as this is regular income.....is there anything I can do? As I said I will be showing no other income except this 1000.00$ WINNER. 

So basically show 1000$ income and thats it? No deductions no, nothing? Again, thanks
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#16
Posted: 4/1/2012 6:39:19 PM

Does your family business have a CPA or other financial advisor you could consult?  I would give it a shot, since they are your best chance at finding deductions that you may not have found (being your first filing in so long).  Like they say, any bit helps... Plus, because it's not a basic 1040 filing (regular job, no gambling or other additional forms to fill out) it most likely isn't going to be free either.  This year I only had TWO friggin tickets to report, and it went from a free filing to $50+.  Sucks, but I'd rather play it safe.

And like Vanzack advises, DO NOT avoid it.  I'm sorry to hear they hit you with the 1099.  Without any other income/W2's to file, you're pretty much stuck with a spotlight on yourself. 

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#17
Posted: 4/1/2012 7:26:31 PM
You have not filed, payed "off book" from family business? They will be more interested in the fact that you have not filed. The tax owed on a grand is insignificant. 
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#18
Posted: 4/1/2012 7:31:22 PM
The government does not know whether or not I work. Simple as that. As of right now according to the government I am "unemployed"..........

I just brought that up in case it changed things.

Government: Oh, since you don't have a job and only made 1000$ in 2011 [peanuts and certainly not enough for someone to get by on] you dont have to pay taxes.

Samuel: Why thank you Uncle sam.

^^Obviously that is not how it works but just tryna see if it changes things that this one little piece of paper is the only income i will be filing. I wanted to know if that changed anything.

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#19
Posted: 4/1/2012 7:39:53 PM
Last year the only income I showed was 14k in slot machine winnings, I am also in school, payed no taxes on the time of the winnings, and still got a refund on my taxes
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#20
Posted: 4/1/2012 9:22:22 PM

Im pretty sure that if your earnings are 1k you are exempt from even filing.

But if you have to file, your standard deduction (the deduction the govt gives everyone for free) easily eats up the 1k.  You will owe zero taxes - but make sure and file correctly.  Just find out if you have to file or not and follow accordingly - you will owe zero tax either way - but you still might have to file.

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#21
Posted: 4/1/2012 10:00:56 PM
Ok thank you very much Vanzack.

If I worked on the books and made 92k a year I would have no problem telling them i made 93k this year instead of the usual 92k.

BUT seeing as how I dont file taxes, it seems like what the heck if i have to file just over this thousand. But if it has to be done it has to be done. 

 Now my brother usually does his taxes himself as he doesnt have no fancy schmancy things just simple what he made etc.

Would anyone that files their own taxes every year know how to handle this for me? Or am I better off paying H&R BLOCK to do it for me? 

Your advice : File the 1k and you wont have to pay taxes. 

My question the next step should I let someone do my taxes [a family member or friend] and put just 1K IN EARNINGS or should I go to H&R BLOCK and explain to them the situation. Thanks again


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#22
Posted: 4/2/2012 5:17:43 AM

 You do know that the IRS has employees read through these forum and discussion posts don't you Samuel? With all the money mentioned on wagers and winning and such, they like to monitor who might owe them for gambling or other types of income.

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#23
Posted: 4/2/2012 5:20:43 AM

 You do know that the IRS has employees that read through these forum and discussion posts don't you Samuel? With all the money mentioned on wagers and winning and such, they like to monitor for who might owe them for gambling or other types of income.

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#24
Posted: 4/2/2012 10:28:42 AM
QUOTE Originally Posted by BlackStone3:

 You do know that the IRS has employees that read through these forum and discussion posts don't you Samuel? With all the money mentioned on wagers and winning and such, they like to monitor for who might owe them for gambling or other types of income.

Thats funny.

The IRS reads covers looking for winning gamblers.  HA!

That would be the most unproductive use of resources possible at the IRS.  So funny.

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#25
Posted: 4/2/2012 10:30:52 AM
QUOTE Originally Posted by samuelsosa:

Ok thank you very much Vanzack.

If I worked on the books and made 92k a year I would have no problem telling them i made 93k this year instead of the usual 92k.

BUT seeing as how I dont file taxes, it seems like what the heck if i have to file just over this thousand. But if it has to be done it has to be done. 

 Now my brother usually does his taxes himself as he doesnt have no fancy schmancy things just simple what he made etc.

Would anyone that files their own taxes every year know how to handle this for me? Or am I better off paying H&R BLOCK to do it for me? 

Your advice : File the 1k and you wont have to pay taxes. 

My question the next step should I let someone do my taxes [a family member or friend] and put just 1K IN EARNINGS or should I go to H&R BLOCK and explain to them the situation. Thanks again


Dude - just do some reading online - according to this, you dont even have to file.  Just make sure and do the right thing - you wont owe money anyway.

LINK

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