Blackjack not a taxable transaction!

Cardcounter

Well-Known Member
#1
Did you know that you can win $50,000 playing blackjack and it is not usually a taxable transaction for the player. The casino probably has to pay taxes on their blackjack winnings but that's not your problem. However if you hit a slot machine jackpot of $1,200 or more than you have to pay taxes on that. Some other table games with long shot payoffs of 1,000 to 1 have taxable consquences if you win big but not if you win big in blackjack.
 

Sonny

Well-Known Member
#2
Cardcounter said:
Some other table games with long shot payoffs of 1,000 to 1 have taxable consquences if you win big but not if you win big in blackjack.
You still have to pay taxes to the IRS. Just because the casino doesn’t withhold them from your transaction doesn’t mean you are not responsible for reporting it on your tax forms. Not reporting income on your tax form is illegal. Don’t expect the casino to take care if it for you. They won’t get into any trouble if you don’t report it, only you will. It is your responsibility to fill out all tax forms correctly and accurately.

-Sonny-
 

shadroch

Well-Known Member
#3
There is a huge diffrence between a casino not witholding taxes and something not be taxable.Almost any income you recieve is taxable. It is your responsibility to pay them,not the people giving you the money.
 

Paradox

Well-Known Member
#5
What???

Are you insane?

ALL gambling income is taxable, regardless of whether or not the casino was required to file a form. If you get audited, all of your win/loss statements will be examined, even if the casinos didn't submit a CSR, 1099 or SAR.

You can go to jail for not knowing the laws in this country. The IRS and FinCEN are dead serious about your responsibilities.

Don't believe for one minute that you are not liable for the taxes on your gambling wins. If your losses exceed your annual wins, that is different.

Call the IRS and ask them, if you don't want to believe me.

Make sure you give them your real name and SSN ;-)
 

toastblows

Well-Known Member
#6
Doesnt this topic pop up about once a month. :flame: ....if you win $50k, dont report taxes. Let me know what your Federal inmate number is so we can penpal by letter....assuming they wont let you log on to post here that is from prison :laugh:
 

Cardcounter

Well-Known Member
#7
Wins and losses playing blackjack

Lets take a hypothetical I have won a $1,000 playing blackjack but I have also lost $2,900. Should I throw out what I lost and pay takes on what I won. If you had to do that not even the casinos could make money. You have to be able to write of what you lost or every gambler would probably owe taxes because most gamblers have won hands that pay out money even though most gamblers lose it in the end.
 

ChefJJ

Well-Known Member
#8
Cardcounter said:
Lets take a hypothetical I have won a $1,000 playing blackjack but I have also lost $2,900. Should I throw out what I lost and pay takes on what I won. If you had to do that not even the casinos could make money. You have to be able to write of what you lost or every gambler would probably owe taxes because most gamblers have won hands that pay out money even though most gamblers lose it in the end.
That's a completely different message than what you conveyed the first time. :flame:

good luck
 

sagefr0g

Well-Known Member
#9
Paradox said:
....... If your losses exceed your annual wins, that is different.

......... ;-)
i wonder about this. i had a friend won a substantial amount on the lottery. he reported the win on his taxes but called the irs asking them if he couldn't claim the loss's he had incurred buying lottery tickets. they told him he could but he would have to file as a professional gambler to do it. :confused:
 

Sonny

Well-Known Member
#10
Cardcounter said:
Lets take a hypothetical I have won a $1,000 playing blackjack but I have also lost $2,900. Should I throw out what I lost and pay takes on what I won.
Of course not. If you end the year with a loss then you don’t have to pay income taxes since it wasn’t income (although you'll probably still have to itemize it on your tax forms), but that’s a very different situation than what you originally said:

“Did you know that you can win $50,000 playing blackjack and it is not usually a taxable transaction for the player.”

There is a very important difference there.

-Sonny-
 

toastblows

Well-Known Member
#11
Cheat Sheet:

1. Gambling Wins > Gambling Losses, IRS taxable income on net profit

2. Gambling Losses > Gambling Wins, No taxable income. Cannot claim itemized deduction on loss*


*Unless you are a professional gambler. To determine this:

1. Do you have a full time job?
Yes -> not pro gambler according to IRS
No -> answer question 2.

2. Do you make the money you survive on consistantly from gambling?
Yes -> see 3.
No -> not pro gambler according to IRS

3. You may qualify for tax deductions of gambling losses if you itemize a federal tax return. Please see a tax accountant and possibly a lawyer. :cool2:
 

Kasi

Well-Known Member
#12
Sonny said:
Of course not. If you end the year with a loss then you don’t have to pay income taxes since it wasn’t income (although you'll probably still have to itemize it on your tax forms),-Sonny-

Well, I don't know for sure, but, the way I understand it, I think it is possible you may owe on your winnings despite your losses.

Gambling winnings are declarable on Schedule A as income and, the way I understand it, gambling losses can only be offset on Schedule D (or whatever itemized deductions are.)

And, even then, only to the extent of winnings.

So, if u don't itemize deductions, you could be screwed.

Like, you stick a buck in a slot machine and win $1250, and get a W2G, it's not like you get to deduct the dollar that won the money - after all you're only $1249 ahead.
 

EasyRhino

Well-Known Member
#13
Right. If you don't itemize deductions, then you can't deduct gambling losses.

If you do itemize, then you can deduct gambling losses, but if you otherwise would have been better off with the standard deduction, then you effectively end up paying more in taxes, if not for the damn gambling.

Also, there's no carryforward of losses to the next year, professional or not.

edit: here's a decent article I remember reading:
http://www.taxabletalk.com/posts/1125006725.shtml (Archive copy)
 
Last edited:
#14
Kasi said:
Well, I don't know for sure, but, the way I understand it, I think it is possible you may owe on your winnings despite your losses.

Gambling winnings are declarable on Schedule A as income and, the way I understand it, gambling losses can only be offset on Schedule D (or whatever itemized deductions are.)

And, even then, only to the extent of winnings.

So, if u don't itemize deductions, you could be screwed.

Like, you stick a buck in a slot machine and win $1250, and get a W2G, it's not like you get to deduct the dollar that won the money - after all you're only $1249 ahead.
Do you declare your winnings on your taxes? You declare yourself as a AP so you must be tons ahead or are you just a theorist who plays for fun? Have you ever played for real money? Sounds like you never have ! So pray tell us how you have handle your winnings on your taxes ? I can tell you no W2 issued no taxes paid for me. Don't know what kind of EV I would have to have paying taxes but I am sure I probally would quit playing for real money . You can pull out your old tax returns and reference them to tell us how you handle your winnings !:laugh:
 

KenSmith

Administrator
Staff member
#15
InPlay said:
Don't know what kind of EV I would have to have paying taxes but I am sure I probally would quit playing for real money .
As long as you file Schedule C as a professional gambler, taxes are manageable, even if you accurately pay tax on all your gambling profit like I do. Yes, your profits are reduced by your nominal tax rate, but that's the same way it works for non-gambling income too.

Edited to add: I see now that most of this thread has to do with the terrible tax situation for non-pro gamblers. My comment is therefore probably meaningless in this thread.
 

Paradox

Well-Known Member
#16
Don't you know what is legal and illegal?

After all, each and every one of us in the US is required to obey all laws. Ignorance is no excuse to break the law.

If you have income of most any kind, you must pay taxes in the US. You need to quit listening to a bunch of idiots(including me) and get some tax advise from an CPA or tax attorney.

See:
http://www.irs.gov/taxtopics/tc419.html
 

Kasi

Well-Known Member
#17
InPlay said:
Do you declare your winnings on your taxes? You declare yourself as a AP so you must be tons ahead or are you just a theorist who plays for fun? Have you ever played for real money? Sounds like you never have ! So pray tell us how you have handle your winnings on your taxes ? I can tell you no W2 issued no taxes paid for me. Don't know what kind of EV I would have to have paying taxes but I am sure I probally would quit playing for real money . You can pull out your old tax returns and reference them to tell us how you handle your winnings !:laugh:
Keep in mind, whether I declare gambling winnings, if any, on my taxes or not, whether I have ever played for real money or not, whether I have won a ton of money or none at all, as an AP or playing for fun, no matter how it sounds to you, doesn't change the tax laws one iota.

And I wouldn't publicly admit to the fact that just because you receive no W2, I assume you mean W2-G, you don't pay taxes on your winnings.

Not what I would call an "AP" move :)
 

EasyRhino

Well-Known Member
#18
Say, Ken, maybe you shouldn't make too much money writing books and stuff... it might jeopardize your available to declare yourself a professional gambler. :)
 
#19
KenSmith said:
As long as you file Schedule C as a professional gambler, taxes are manageable, even if you accurately pay tax on all your gambling profit like I do. Yes, your profits are reduced by your nominal tax rate, but that's the same way it works for non-gambling income too.

Edited to add: I see now that most of this thread has to do with the terrible tax situation for non-pro gamblers. My comment is therefore probably meaningless in this thread.
To be declared a professional gambler it is my understanding you have to have a gambling stamp. I don't know if it is true or myth. Can you elobrate as a professional gambler?
 
#20
Kasi said:
Keep in mind, whether I declare gambling winnings, if any, on my taxes or not, whether I have ever played for real money or not, whether I have won a ton of money or none at all, as an AP or playing for fun, no matter how it sounds to you, doesn't change the tax laws one iota.

And I wouldn't publicly admit to the fact that just because you receive no W2, I assume you mean W2-G, you don't pay taxes on your winnings.

Not what I would call an "AP" move :)

Busted AGAIN ! Another professional writer. Not a player or a gambler.
 
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