Question about Winnings and Taxes
- Thread starter Carmine782
- Start date
Carmine, all the talk of CTRs and SARs is mainly for money-laundering regulations.
For TAXES, and table games, the IRS mainly depends on self-reporting. You're supposed to report and pay taxes on each winning session (which you keep track of yourself). You can also deduct any losing sessions (which you also keep track of).
If you are playing machine, and have a single payout over $1,200, then the casino will give you a W-2G form, which they WILL send to the IRS, and you can GUARANTEE that the IRS will be expected to be paid taxes on it come April.
For TAXES, and table games, the IRS mainly depends on self-reporting. You're supposed to report and pay taxes on each winning session (which you keep track of yourself). You can also deduct any losing sessions (which you also keep track of).
If you are playing machine, and have a single payout over $1,200, then the casino will give you a W-2G form, which they WILL send to the IRS, and you can GUARANTEE that the IRS will be expected to be paid taxes on it come April.
Chip amounts in excess of $1200 will not be taxed. The tax applies to JACKPOTS over $1200. Table games are not part of this.
At $3000 you will have an MTL (Multiple Transaction Log) filled out. It is internal paperwork, nothing to worry about.
at $10000.01 they must fill out a CTR. It just states that a large transaction was made. The report doesn't go to the IRS, but I'm pretty sure it goes to Homeland Security.
If you are structuring and have someone cash out for you to try to avoid they must fill out a SARC (Suspicious Activity Report by Casinos).
Believe me, you will be better of just letting the CTR go through.
I work in a casino. None of thse are things I would be too concerned about as long as you are an honest taxpayer.
At $3000 you will have an MTL (Multiple Transaction Log) filled out. It is internal paperwork, nothing to worry about.
at $10000.01 they must fill out a CTR. It just states that a large transaction was made. The report doesn't go to the IRS, but I'm pretty sure it goes to Homeland Security.
If you are structuring and have someone cash out for you to try to avoid they must fill out a SARC (Suspicious Activity Report by Casinos).
Believe me, you will be better of just letting the CTR go through.
I work in a casino. None of thse are things I would be too concerned about as long as you are an honest taxpayer.
I was playing at the Nugget a few years back and went across the street to another casino and played. I won and went to the window to cash out and the asian guy behind the counter seen the black nugget chips I had in my pocket. He asked me if I wanted to cash them in and I said sure. He then purchased five black chips from me. I asked him why he would want to cash another casino's chips in and he told me they get a few percent for returning chips to proper casino. He said they have an agreement.
I'm no tax expert, but I believe people mean ...
Gambling losses ARE deductible, BUT only to offset gambling winnings. You cannot take a deduction to reduce other personal income like you can with a business. I don't think it matters if gambling is your declared profession or you're a lucky SOB who wins the lottery.
IOW: You win $3,000 on one trip and lose $4,000 on another. Your net taxable income from gambling is $0. If you had the same $1K loss in a small business you could use that to reduce your other income. The opposite: $4K win and $3K loss means you have taxable income of $1K
If you take a trip just to gamble, I think you can reduce any winnings by your expenses (air, hotel, etc).
Gambling losses ARE deductible, BUT only to offset gambling winnings. You cannot take a deduction to reduce other personal income like you can with a business. I don't think it matters if gambling is your declared profession or you're a lucky SOB who wins the lottery.
IOW: You win $3,000 on one trip and lose $4,000 on another. Your net taxable income from gambling is $0. If you had the same $1K loss in a small business you could use that to reduce your other income. The opposite: $4K win and $3K loss means you have taxable income of $1K
If you take a trip just to gamble, I think you can reduce any winnings by your expenses (air, hotel, etc).
It has been done before. A casino can refuse to cash your chips for whatever reason they invent. See the link I gave on page 1 of this thread. You can always appeal to the Gaming Commission, but if the casino has a good reason then they can confiscate your chips and you end up with a big loss. 
-Sonny-
-Sonny-
No,you can't deduct your airfare and expenses.Not unless you declare your profession as being a professional gambler and have no income from other jobs.
If you get a tax form from a casino for a big win,you can only offset it with gambling losses.Some people have been known to do things like go to an OTB and pick up all the losing tickets.Of course,that is both unethical and possibly even illegal.
If you get a tax form from a casino for a big win,you can only offset it with gambling losses.Some people have been known to do things like go to an OTB and pick up all the losing tickets.Of course,that is both unethical and possibly even illegal.
If you are reporting table winnings:
Add winnings up...winnings are not buy ins. If you buy in for $500 and cashout $1100, winnings = $600.
When filing taxes itemized:
Under gambling winnings, you put $600.
You can subtract out any losses at this point. Keep losing lotto tickets, keep records of losses at casinos. When i won a $1250 jackpot once i got that paperwork like its your freaking job. I asked them how it would work if i put $1K in and won $1250 for taxes. They said the casino can fill out paperwork to reasonably estimate your losses, which you could then use in case of an audit. If you are a stickler for details, work with the casino to keep your tax liability as small as possible. :cool2:
Add winnings up...winnings are not buy ins. If you buy in for $500 and cashout $1100, winnings = $600.
When filing taxes itemized:
Under gambling winnings, you put $600.
You can subtract out any losses at this point. Keep losing lotto tickets, keep records of losses at casinos. When i won a $1250 jackpot once i got that paperwork like its your freaking job. I asked them how it would work if i put $1K in and won $1250 for taxes. They said the casino can fill out paperwork to reasonably estimate your losses, which you could then use in case of an audit. If you are a stickler for details, work with the casino to keep your tax liability as small as possible. :cool2:
IRS Topic 419 - Gambling Income and Expenses:
http://www.irs.gov/taxtopics/tc419.html
"However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses."
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I don't see anything about expenses, so I wonder if you could deduct expenses over and above gambling winnings IF you establish your BJ playing as a business. The hard part if audited might be convincing the IRS you had a reasonable expectation of making a profit. Otherwise they might decide it's a hobby, not a business .. something I've heard they do with people who have hobby-like businesses that show a loss year after year.
http://www.irs.gov/taxtopics/tc419.html
"However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses."
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I don't see anything about expenses, so I wonder if you could deduct expenses over and above gambling winnings IF you establish your BJ playing as a business. The hard part if audited might be convincing the IRS you had a reasonable expectation of making a profit. Otherwise they might decide it's a hobby, not a business .. something I've heard they do with people who have hobby-like businesses that show a loss year after year.
i think its pretty clear you can only claim "actual gambling wins/losses"...not getting a hot dog at the casino, not a limo ride, not a plane ticket. But yes, you are correct, the casino I won a jackpot that required tax forms did say if i lost a lot, they would fill out another tax liability form with "reasonable losses" to offset my win. I think i won it on the 3rd shuffle of the VP so i was down $15....so i didnt care :laugh: ... now that i think about it i shouldve claimed something
There is a Spot on the CTR for Starting Bankroll
Good Evening Everyone, Sorry to bring up a post, but i seen several people asking "Does my starting Bankroll get taxed?" And the answer is simply. NO. Yes, any Transaction above $10,000 you will have to fill out a CTR. I play high-stakes blackjack from time to time, Sometimes my Starting Bankroll is already above $10,000, but Yes, there is a space on the form where you input your Starting Bankroll Amount.
Good Evening Everyone, Sorry to bring up a post, but i seen several people asking "Does my starting Bankroll get taxed?" And the answer is simply. NO. Yes, any Transaction above $10,000 you will have to fill out a CTR. I play high-stakes blackjack from time to time, Sometimes my Starting Bankroll is already above $10,000, but Yes, there is a space on the form where you input your Starting Bankroll Amount.
