TAXES: W2G, 1099, Filing, Q&A - Ask Here!

[JoeyAnyc]

Hey gang,

It's hat time of year again. I know there's usually a bunch of questions that pop up about filing W2G & 1099 forms, and casino wins. With the new friends we've gained since last tax season, this is a place to ask your tax filing questions.

SEARCH: You can do a search for existing Tax topics.
Most Tax topics are under General Chat.

To search: Go into General Chat > Click on Search Forum > Enter your key word
This will do a search in the General Chat section only.

Here's a list of existing topics: (will add more as we find them)

Win/Loss Statements: http://www.slotmachinesforum.com/showthread.php?8008-Win-Loss-statement-question&highlight=taxes

[roadrunner64]

Thanks for bringing the topic up. I'm sure there will be a lot of interest in how best to file.

[knagl]

Here's one to add. It's about winning prizes (such as casino drawings) and the tax implications:
http://www.slotmachinesforum.com/showthread.php?16876-Casino-Giveaways-and-Taxes

[MsTabbyKats]

I own a tax prep business (but still find time to get to the casino).

If anyone has a question, please feel free to PM me.

[tycoon]

Awesome! To make this short:

I live in Ohio, gamble in Michigan. W-2G forms combined are at $23,000. A win/loss statement from MGM says I only have a profit of $3,000.

When I enter $23,000 for income, I owe Ohio $850 yet I paid Michigan state tax. Do I have to pay Ohio still? If so, could I
Just enter a $3,000 income for gambling despite the W-2G's since my actual income (from the statement from MGM) is only $3,000?

[Zumzum]

Boy, am I glad I live in a non-income tax state! Although, I did win a $3K jackpot down in Oregon last year. I'd better not have to file in Oregon! At least they can't tax income earned by Washington residents in Washington if any income was earned in Oregon (they tried at one point, Washington said okay, you know that sales tax exemption? kiss it goodbye! or words to that effect!)

[thelma]

Awesome! To make this short:

I live in Ohio, gamble in Michigan. W-2G forms combined are at $23,000. A win/loss statement from MGM says I only have a profit of $3,000.

When I enter $23,000 for income, I owe Ohio $850 yet I paid Michigan state tax. Do I have to pay Ohio still? If so, could I
Just enter a $3,000 income for gambling despite the W-2G's since my actual income (from the statement from MGM) is only $3,000?
tycoon, it's a little complicated. Ohio uses a system much like New York State does where you report income from your Federal return,and then they have a Subtraction/Addition section.
If you could write off the losses on your Federal return USING SCHEDULE A ITEMIZED DEDUCTIONS, then the W2-G gambling income should be reflected on your Ohio return as subtracted/deducted. If you cannot take the losses as a deduction, you'll have to pay OH income tax on it. Ohio has no separate system for deducting gambling losses in 2012 (they will for 2013).
Michigan does tax nonresidents for gambing income; they have no reciprocity with OH unless it was income earned from working (which W2-G income isn't).
The simpliest way to do this right is if you're using TurboTaxor like software:
do your federal return first.
Then have it do MI and OH.
The software knows how to properly and legally reflect any taxes owed and/or taxes suject to deduction/exemption.
If you can write the losses off for federal, you're prob ok, will just pay one state the tax.
If you can't take the loss (using Schedule A, Federal return) you'll probably take a hit from both states too.
Hope this helped.

[tycoon]

tycoon, it's a little complicated. Ohio uses a system much like New York State does where you report income from your Federal return,and then they have a Subtraction/Addition section.
If you could write off the losses on your Federal return USING SCHEDULE A ITEMIZED DEDUCTIONS, then the W2-G gambling income should be reflected on your Ohio return as subtracted/deducted. If you cannot take the losses as a deduction, you'll have to pay OH income tax on it. Ohio has no separate system for deducting gambling losses in 2012 (they will for 2013).
Michigan does tax nonresidents for gambing income; they have no reciprocity with OH unless it was income earned from working (which W2-G income isn't).
The simpliest way to do this right is if you're using TurboTaxor like software:
do your federal return first.
Then have it do MI and OH.
The software knows how to properly and legally reflect any taxes owed and/or taxes suject to deduction/exemption.
If you can write the losses off for federal, you're prob ok, will just pay one state the tax.
If you can't take the loss (using Schedule A, Federal return) you'll probably take a hit from both states too.
Hope this helped.

That actually helps a lot, thanks!

[thelma]

Hope it turns out in your favor!

[tycoon]

Hmm I couldn't get it to work so well. I guess I'll just pay Ohio $850. I itemized it and it seems like Ohio doesn't care.

There was one thing I saw, was that you could enter a state where you earned income and was "double taxed". The first step says enter income on which you were taxed by both Michigan and Ohio, but then the next step it just says to enter the amount I earned in Michigan, and how much they taxed me. When I do it this way, it reduces my payment to Ohio by $550, so I only owe $300.

Can I do that?

[thelma]

Hmm I couldn't get it to work so well. I guess I'll just pay Ohio $850. I itemized it and it seems like Ohio doesn't care.

There was one thing I saw, was that you could enter a state where you earned income and was "double taxed". The first step says enter income on which you were taxed by both Michigan and Ohio, but then the next step it just says to enter the amount I earned in Michigan, and how much they taxed me. When I do it this way, it reduces my payment to Ohio by $550, so I only owe $300.

Can I do that?
So you entered just step 2 (enter amt earned in MI and how much they taxed you)?
Only MI withheld taxes from your W2-Gs, correct? MI didn't withhold any for OH too, did they (on the W2-Gs)?
This is a pdf doc with the instructions for OH residents' OH income tax returns. Look at pg 31
For Schedule C: Line 58
It spells out that if you paid tax to another State, you can take that away so you don't owe OH (too).
http://tax.ohio.gov/documents/forms/ohio_individual/individual/2011/PIT_IT1040_Booklet.pdf
I'm assuming OH deems that you need to get a deduction for it because it's already included as Income, because OH uses your income amt based on your Fed Return (which has your W2-G winnings as additional income).
This is the actual Tax return FORM:
http://tax.ohio.gov/documents/forms/ohio_individual/individual/2011/PIT_IT1040.pdf

[tycoon]

So you entered just step 2 (enter amt earned in MI and how much they taxed you)?
Only MI withheld taxes from your W2-Gs, correct? MI didn't withhold any for OH too, did they (on the W2-Gs)?
This is a pdf doc with the instructions for OH residents' OH income tax returns. Look at pg 31
For Schedule C: Line 58
It spells out that if you paid tax to another State, you can take that away so you don't owe OH (too).
http://tax.ohio.gov/documents/forms/ohio_individual/individual/2011/PIT_IT1040_Booklet.pdf
I'm assuming OH deems that you need to get a deduction for it because it's already included as Income, because OH uses your income amt based on your Fed Return (which has your W2-G winnings as additional income).
This is the actual Tax return FORM:
http://tax.ohio.gov/documents/forms/ohio_individual/individual/2011/PIT_IT1040.pdf

Correct, only MI withheld taxes, which is why I was unsure about going that route to save money, since it asked for income taxed by both states.


Thanks so much for the info you provided. I might just paper file Ohio taxes, since turbo tax doesn't seem to be helping. I already filed my Federal, since that's not going to change and I already have all the papers I needed to file.

To be clear though, gambling winnings from Michigan is considered income taxed by another state, right?

Thanks so much again!

[thelma]

Correct, only MI withheld taxes, which is why I was unsure about going that route to save money, since it asked for income taxed by both states.


Thanks so much for the info you provided. I might just paper file Ohio taxes, since turbo tax doesn't seem to be helping. I already filed my Federal, since that's not going to change and I already have all the papers I needed to file.

To be clear though, gambling winnings from Michigan is considered income taxed by another state, right?

Thanks so much again!
Yes, for sure: gambling winnings from Michigan is considered income taxed by another state.
If you look over the paper form and instructions, it's pretty clear how/by what method OH figures what you owe.
And it's pretty simple if you look at it.
For Income,OH uses your Fed Income figure from line 37 on your Fed 1040. That amt already has your W2-G amts included (that is on line 21 Federal 1040 'Other Income')
Since OH doesn't (yet) allow deductions for losses to go against your Wins, they don't provide for any place to write off your Federal Schedule A (Itemized) deductions (on the Fed Schedue A, that's the losses [that $20K you mentioned] under Misc Deductions), so your Winnings are fully taxed by OH. (they say with legalized gambling coming to OH, they will find a way for you to deduct some of the Wins by allowing Losses (so: like NJ for me, only taxed on NET wins), but not this year.
Ok so they have your taxed Income for OH and now they need to compensate you for paying MI. They do that by giving you OH Form 1040 Schedule C. There, you are credited for the tax you paid to MI. If they didn't do that, you'd be taxed by MI and OH, because MI will not give you a free ride unless the Income you earned in MI as an OH resident is from 'working'.
They have no reciprocal arrangement with OH for any Income other than that (though they may come to a reciprocal once OH also allows gambling... to cover THEIR residents who win in OH...)

There's one other point I'll make: if OH's Individual Income Tax rate is higher than MI's, then OH wil get a little extra out of you because they're only crediting you the amt you paid MI (and make sure you know exactly how much MI is gtting out of you so you can put that full amt on your OH 1040 Schedule C credits [pg 3]. It could be [might. not a given] that MI/the MI casino didn't withhold enough and you owe MI a little more than the amt on the W2-G; what ever you actually end up paying MI is what you can deduct in OH)
IOW, for example (hypthetical figures for simplicity), OH taxes at 3% and MI at 2%, and your income is $23K, then MI would take $460 from you, but OH would want $690. The $460 deducted because you paid MI still leaves an amt owed OH ($230)because they tax at a higher rate.
Does this help at all or am I giving TMI? LOL

[Pookkyy]

Yes, for sure: gambling winnings from Michigan is considered income taxed by another state.
If you look over the paper form and instructions, it's pretty clear how/by what method OH figures what you owe.
And it's pretty simple if you look at it.
For Income,OH uses your Fed Income figure from line 37 on your Fed 1040. That amt already has your W2-G amts included (that is on line 21 Federal 1040 'Other Income')
Since OH doesn't (yet) allow deductions for losses to go against your Wins, they don't provide for any place to write off your Federal Schedule A (Itemized) deductions (on the Fed Schedue A, that's the losses [that $20K you mentioned] under Misc Deductions), so your Winnings are fully taxed by OH. (they say with legalized gambling coming to OH, they will find a way for you to deduct some of the Wins by allowing Losses (so: like NJ for me, only taxed on NET wins), but not this year.
Ok so they have your taxed Income for OH and now they need to compensate you for paying MI. They do that by giving you OH Form 1040 Schedule C. There, you are credited for the tax you paid to MI. If they didn't do that, you'd be taxed by MI and OH, because MI will not give you a free ride unless the Income you earned in MI as an OH resident is from 'working'.
They have no reciprocal arrangement with OH for any Income other than that (though they may come to a reciprocal once OH also allows gambling... to cover THEIR residents who win in OH...)

There's one other point I'll make: if OH's Individual Income Tax rate is higher than MI's, then OH wil get a little extra out of you because they're only crediting you the amt you paid MI (and make sure you know exactly how much MI is gtting out of you so you can put that full amt on your OH 1040 Schedule C credits [pg 3]. It could be [might. not a given] that MI/the MI casino didn't withhold enough and you owe MI a little more than the amt on the W2-G; what ever you actually end up paying MI is what you can deduct in OH)
IOW, for example (hypthetical figures for simplicity), OH taxes at 3% and MI at 2%, and your income is $23K, then MI would take $460 from you, but OH would want $690. The $460 deducted because you paid MI still leaves an amt owed OH ($230)because they tax at a higher rate.
Does this help at all or am I giving TMI? LOL

OMG Thelma - you're so knowledgeable - want to do my taxes this year? LOL ;)

[thelma]

And the paper form for OH look very simple; and they have a Fill-In and Print version available too. If you need that/want to do it on the comp.

[thelma]

OMG Thelma - you're so knowledgeable - want to do my taxes this year? LOL ;)
LOL
Of course, I would help anyone who needed assistance.
Pookkyy, NJ is sooooooooooo easy. They just ask for NET winning; they don't ask you to pay any taxes on gambling income if you lost as much as or more than you won.
An advantage to NJ's decades' old 'support' of AC.
I feel badly for folks like Weezie and Rach and... Feds/IRS give them no means to deduct losses against their W2-Gs because they don't have enough to Itemize on Schedule A... not fair...

[tycoon]

Wow! Thank you so much! I seriously owe you own! Once I get done with law school, and you need any legal advice, it's on the house :p

[New2This]

I have a question.. hope someone can help. I have W-2s showing wins totaling $26,800. I never got a player's card. I understand you can deduct your losses up to the amount of your winnings. I took cash out from the casino ATM, so that shows up on my bank statement. And I kept a basic log too (where I played, which machine, the bet). So, from what I have recorded, I lost about $9000 (based on what I took out form the casino ATM and played, and walked away with nothing).

My tax guy says that even with that info, it might not be enough for the IRS to accept. In other words, I can't really prove I lost $9000 based on my bank withdrawals from the casino and my log.

i don't want to get audited. Yet I feel I am legally entitled to deduct these losses, because they are real!

Also, I think deducting 9k set against a win of $26,800 is pretty reasonable. I took plenty of cash that I did not get from the casino ATM that I failed to record or remember.

1) Is a bank statement showing cash withdrawn from the casino, along with my handwritten log, enough to PROVE these are losses?
2) Does this make me more prone to an audit?

I have learned my lesson and need to get a player's card. I am new to this so I never knew. In the meantime, I really need some advice on the best approach. Thans!

[thelma]

I have a question.. hope someone can help. I have W-2s showing wins totaling $26,800. I never got a player's card. I understand you can deduct your losses up to the amount of your winnings. I took cash out from the casino ATM, so that shows up on my bank statement. And I kept a basic log too (where I played, which machine, the bet). So, from what I have recorded, I lost about $9000 (based on what I took out form the casino ATM and played, and walked away with nothing).

My tax guy says that even with that info, it might not be enough for the IRS to accept. In other words, I can't really prove I lost $9000 based on my bank withdrawals from the casino and my log.

i don't want to get audited. Yet I feel I am legally entitled to deduct these losses, because they are real!

Also, I think deducting 9k set against a win of $26,800 is pretty reasonable. I took plenty of cash that I did not get from the casino ATM that I failed to record or remember.

1) Is a bank statement showing cash withdrawn from the casino, along with my handwritten log, enough to PROVE these are losses?
2) Does this make me more prone to an audit?

I have learned my lesson and need to get a player's card. I am new to this so I never knew. In the meantime, I really need some advice on the best approach. Thans!
I'm going to answer your Qs simply and if you have any other Qs, or want more detailed discussion, then please just ask.
If I were you, I would without hesitation claim the $9000 you can prove you -lost based on your detailed log and caino ATM receipts- on Schedule A Misc Deductions (that is where gambling lossses go).
I would not lose any sleep over fear of an audit. Most people deduct losses that equal their W2-G wins ( you can't claim a deduction for more than you won. Not allowed), and you are actually claiming a deduction of less than Won (Gambling Income realized). The IRS is used to the fact, and knows full well, that most people lose more -much more- than they win.
An audit for this type of deduction is VERY rare. More likely, but very unlikely that even this would happen, is that you would get a form letter from the IRS asking you for documentation of the deduction. Your detailed log and ATM receipts should be more than enough. A Win/Loss statement (the 'Player's Card' issue) isn't enough in itself anyway, nor is it more highly regarded as a form of 'Proof'.
You ask also if this would increase your chance for Audit. The answer is No. It won't raise flags on a clean return for a person who has had no issues with the IRS in the past.
I hope this helped.
To be clear again: I would have no qualms at all doing for my own return what I stated above and I would not have an iota of worry afterwards. It's really not a big deal, especially to the IRS who processes millions upon millions of returns, and millions with Gambling Income and Misc Deductions for Losses.
File, claim, and forget about it. You did it all legally, took what you are entitled to take (deductions), and have no intent to evade paying what you owe.
Matter-of-fact, as you make clear, you are paying more than you would have had to if you had had more Losses documented.

[New2This]

THANK YOU! Truly. You have made me feel so much better. I have been agonizing over this. I've never had issues with the IRS or anything else. I don't even have library fines on my record. I want to do what is lawful and correct, and it kind of burns me that I wasn't a little more careful documenting every penny lost. I sort of reconciled in my head that I could only prove losses connected with an ATM withdrawal at the casino. If I went and played using cash won from a handpay (which I did), and lost it, that wouldn't be documented anywhere other than my log. So, at a bare minimum, I decided to only itemize the losses that I can tie to that casino cash withdrawal.

In truth, though, I likely lost about $13000. Still up a bit considering my total jackpots, even with taxes taken out. But not by much. Sort of makes me sick to see how I reinvested these winnings and wound up simply making a large donation to the casino. The lion's share of my jackpots happened on ONE day: 12-13-11. I won 10k on a $10 slot. Then $4k on a $25 slot. Then $1250 on a $5 slot. It was incredible. And if it weren't for my husband calling me and telling me to get out of there, I might have lost a lot of these funds.

I guess I just got a little scared regarding taxes when I asked our tax guy about it, and he basically said, "The iRS doesn't have to accept any deductions you can't prove without the right documentation. Basically, it's you vs the IRS. Go in with your best estimate."

Thanks again for your response!

[New2This]

Actually, I do have one more question I just thought of:

When you itemize your losses, are there any limits on the amount other than claiming up to the amount of winnings? In other words, do $5000 of itemized losses count the same way that $5000 donated to charity might? My tax guy said something about losses being somewhat reduced or something like that. So it made me wonder if that meant you don't get the same dollar-for-dollar deduction on gambling losses as you would for, say, mortgage interest paid or a charitable contribution. Thanks for any insight anyone has!

[thelma]

Actually, I do have one more question I just thought of:

When you itemize your losses, are there any limits on the amount other than claiming up to the amount of winnings? In other words, do $5000 of itemized losses count the same way that $5000 donated to charity might? My tax guy said something about losses being somewhat reduced or something like that. So it made me wonder if that meant you don't get the same dollar-for-dollar deduction on gambling losses as you would for, say, mortgage interest paid or a charitable contribution. Thanks for any insight anyone has!
There are no limits, no. You can deduct on Schedule A Misc Deductions an amt equal to your losses.
"Losses somewhat reduced": The tax guy is alluding to the fact that Gambling Income goes 'above the line" which means on the 1040. The Losses go on Schedule A Misc Deducts "below the line". The fact that your 'Income' is raised affects many things. One is, of course, that it may put you into a higher bracket, second, may subject you to AMT (alternative minimum tax), third -may reduce or even negate totally a child Tax Credit and Student Loan Interest Deductions.
Those 2 are phased out as your Income climbs.
I lost $350 of the possible $1000 for my Child Tax Credit this year due to W2-G Income putting us into the 'phase out' limits. And that's a CREDIT. Hard Cash. Not a deduction.
:-(

[thelma]

The Child Tax Credit: the Credit begins to phase out with income above $110,00; reduces the Credit by $50 per each $1,000 of income and phases out completely at $130,000 (at $130,000, you get nada.)
Student Loan Interest is phased out between $120,000 and $150,000 (AGI Adjusted Gross Income, Married filing joint).

[New2This]

The income limits you are referring to -- is that after all deductions/adjustments? Or is it based purely off your taxable wages?

What about the alternative minimum tax? What are those income limits? I don't think we would have qualified for the child tax credit anyway -- even without my jackpots. And no student loans for us either...

You seem to know a lot. Really appreciate you sharing! Don't know why I am such a nervous nelly about this. I should be celebrating my wins and instead, I feel like I am pulling my hair out with worry over the tax implications. (Plus, I have the added joy of state income tax where I live, as well as local earned income tax. Thanks, Pennsylvania!)

[thelma]

The income limits you are referring to -- is that after all deductions/adjustments? Or is it based purely off your taxable wages?

What about the alternative minimum tax? What are those income limits? I don't think we would have qualified for the child tax credit anyway -- even without my jackpots. And no student loans for us either...

You seem to know a lot. Really appreciate you sharing! Don't know why I am such a nervous nelly about this. I should be celebrating my wins and instead, I feel like I am pulling my hair out with worry over the tax implications. (Plus, I have the added joy of state income tax where I live, as well as local earned income tax. Thanks, Pennsylvania!)
Since you have no Child Tax Credits nor Student Loan Interest Deduction to lose, the Income limits wouldn't be applicable to you.

AMT involves your income, minus your Itemized Deductions from Schedule A,and then adjustments to see if you're subjected to AMT, such as having to take away certain of those deductions like State and Local Taxes, a fair portion of Medical Expenses, Misc Deductions, many Personal Exemptions, Interest on second mortgages, and more (much related to investment income). Taking away the ability to reduce Income in this way leads to a higher tax liability, but there's also a $75K exemption (Married filing jointly) to try to keep it reasonable.

This is the actual form:
http://www.irs.ustreas.gov/pub/irs-pdf/f6251.pdf
You could take a cursory look to see what your particular forms of income are relevant.
Some years bck we actually got caught up in the AMT because we had 7 personal exemptions (us and our 5 children), itemized deductions etc and there was no 'fix' in place to account for inflation (of Income) then. Now at least there's that $75K exemption.

Yes I see what you mean: PA State Tax... you have a net Win... $23K - $9K... you'll be taxed on that... ugh...

[New2This]

Thank you, Thelma. I looked at the pdf of the IRS form and my eyes started to cross. We didn't have to deal with AMT least year, but this year, I don't know if our income (including my winnings) puts us in another bracket. You know what's odd? The two casinos I go to -- one of them, if you as/beg, takes out federal and state tax. But you have to ask! If you don't speak up first, they take out nothing. They don't ask you. I learned this the hard way with my first HP there, and they took my info and disappeared and when they came back, I said, "Can I have taxes taken out?" They said, "Too late. We are not allowed to as you about that. You have to tell us first." What the ...? But at least this casino does take out PA state tax. The other casino in the area, at least they ask first if you want taxes taken out. However, they do NOT take out state taxes, even when you ask. They said they aren't allowed. This whole tax situation is so frigging confusing. It's bad enough to have that sick feeling when you've dropped several hundred into a machine and walked away with nothing; almost worse when you win and then see how much goes to taxes or how it will affect your income.

[thelma]

Thank you, Thelma. I looked at the pdf of the IRS form and my eyes started to cross. We didn't have to deal with AMT least year, but this year, I don't know if our income (including my winnings) puts us in another bracket. You know what's odd? The two casinos I go to -- one of them, if you as/beg, takes out federal and state tax. But you have to ask! If you don't speak up first, they take out nothing. They don't ask you. I learned this the hard way with my first HP there, and they took my info and disappeared and when they came back, I said, "Can I have taxes taken out?" They said, "Too late. We are not allowed to as you about that. You have to tell us first." What the ...? But at least this casino does take out PA state tax. The other casino in the area, at least they ask first if you want taxes taken out. However, they do NOT take out state taxes, even when you ask. They said they aren't allowed. This whole tax situation is so frigging confusing. It's bad enough to have that sick feeling when you've dropped several hundred into a machine and walked away with nothing; almost worse when you win and then see how much goes to taxes or how it will affect your income.
Don't worry, it'll all be fine. You're being 100% honest in your return, and you have your tax guy taking care of preparing.
As far as the taxes go on the winnings, try to think of it this way (it helps me adjust my attitude LOL): you could have bet all that and won NADA to be taxed on... at least you got some of the HP dollars to keep. Many folks would love to have even one big win.
And at least you can deduct since you already itemize. Some people can't deduct.
So... I tell myself that it could be much worse! (helps me deal LOL)
Take Care!

[foote]

I was hoping someone could answer this question. A friend and I have different views on this and I wanted to know.
If a person won a drawing at a casino for $10,000.00 would they have to pay Federal taxes on the whole amount. I understand that any prize over $600.00 is taxable. To be able to be in the drawing you must be a players club member. You get 1 entry by swiping your card and would get more entries by playing and getting points, say 1 entry for every 100 points.
Anyway, the way that I understand it is that you would be winning a "prize" which would be taxable income. It would not be "gambling winnings" that you could deduct gambling "losses" from. Would your receive a 1099G or a 1099 form from the casino. For the first entry you would not have to make a wager to win, but for the other entries you would, so is it considered gambling winnings or a prize like if you entered a sweepsteaks? If anyone has any experience with this maybe you can give me some insight. Thanks

[thelma]

I was hoping someone could answer this question. A friend and I have different views on this and I wanted to know.
If a person won a drawing at a casino for $10,000.00 would they have to pay Federal taxes on the whole amount. I understand that any prize over $600.00 is taxable. To be able to be in the drawing you must be a players club member. You get 1 entry by swiping your card and would get more entries by playing and getting points, say 1 entry for every 100 points.
Anyway, the way that I understand it is that you would be winning a "prize" which would be taxable income. It would not be "gambling winnings" that you could deduct gambling "losses" from. Would your receive a 1099G or a 1099 form from the casino. For the first entry you would not have to make a wager to win, but for the other entries you would, so is it considered gambling winnings or a prize like if you entered a sweepsteaks? If anyone has any experience with this maybe you can give me some insight. Thanks
Good Question!
First of all, everyone should know and remember that ALL prizes are taxable, and the IRS expects everyone to declare any and all Income. That's the Law; the $600 you mentioned is the amount that must be reported to the IRS by the Payor.
Ok, now to your Q.
For a Prize you would receive a 1099 Misc Income.
'Prizes' and 'Certain Gambling Income' cannot be mixed and matched for Misc Deductions purposes.
In other words, you can't claim 1099 Income from a Prize and then deduct Gambling Losses against that.
You can deduct -on Schedule A Misc Deductions line- what you spent in order to be eligible for the prize you won, but you MUST be able to prove that amount should the IRS ever question it.
You would have to know how many points you earned, what the casino required you to coin in to earn those points, and -MOST IMPORTANT- you must have that documented in some way.
Should the IRS question your return, you need a solid way to prove your expenses.
If you want anything more specific, just ask.
There are members here who have won 'Prizes' of Cash, Gift Cards, etc and I'm fairly sure they'll all tell you they received 1099s, and that many of them had to 'earn' points in order to be eligible for those Prizes.

[foote]

Hi Thelma, thank you for your answer. It sounds like you better be keeping really good records just in case you may win a prize.

So you get 1 free entry to the drawing by just swiping your card. You really don't have to spend any money to get that first entry. You just have to have the card. So, if your name is pulled and you win the prize, there is no way of knowing which entry they pulled (the free one or the one that you earned by actutally playing and spending money) So how does that work. If you didn't have to spend anything to win I would guess that you would have to claim it all and not be able to deduct your losses? It seems like a gray area.

[Pookkyy]

Stupid question, but how do I get a win/loss statement from Trump Marina (now the Golden Nugget) in AC?
I haven't been there since they changed over and the host I used to have there doesn't work there anymore.
I looked online, but they have no link or anything.

[thelma]

Stupid question, but how do I get a win/loss statement from Trump Marina (now the Golden Nugget) in AC?
I haven't been there since they changed over and the host I used to have there doesn't work there anymore.
I looked online, but they have no link or anything.

Pookkyy, here the same Q with an A from another site. Hope it helps.

Re: Win/Loss statement from Trump Marino
14 February 2012, 2:19
I had to call accounting at GN to have a combined statement that shows all 12 months of 2011 (Trump Marina/GoldenNugget) on one statement.
They do not post online like Trump and CET does.
Call and they will mail you a statement.
Here's the link:
http://www.tripadvisor.in/ShowTopic-g29750-i78-k5155875-Win_Loss_statement_from_Trump_Marino-Atlantic_City_New_Jersey.html[

[Advocatus]

You guys seem to know your stuff. I'll throw a curve ball at you. Thanks in advance! :)

In 2011, I won a two year lease on a car from a raffle in Ohio. At the time I lived in PA. The organization that held the raffle provided me with a W2G after some encouragement. The organization, fortunately, withheld taxes for the federal filing on the W2G. As I understand it, I owe Non-resident Income Tax to Ohio. I should be able to deduct the tax paid to Ohio from my PA state income tax because of the agreement they have. Do I file a normal Ohio Personal Income form?
Here where the story gets confusing. At the time of winning the lease, nobody (the car dealer, myself or AAA) was exactly sure how to pay for the taxes on the lease. (I wasn't aware of W2Gs at that time). The dealership instead put together a sales tax for me to pay. I paid sales tax to PA DMV for the car. (the thinking behind this was when you lease a car, you make a monthly tax payment with your lease payment. Since the lease payment is covered by the organization, I paid an upfront tax for the two years).

I see no way to deduct the sales tax from the taxes due to PA. As it stands now, I stand to get taxed twice on the won lease. Any help or direction would be wonderful. I consulted a CPA, but their fees started at $400.

Let me know if more information would be helpful. I'm very appreciative to any advice you could offer.

[Advocatus]

More information

After getting off the phone with PA Tax Help (1.2 hour wait) she confirmed with me the process that I suggested from information I've received from others.

A. Receive W2G
B. File Non-resident Income Tax in Ohio
C. File Schedule T (Gambling Winnings in PA)
D. File REV-420 for Income Tax paid to another state ( I think that is the correct form)
E. Prevent wife from wanting to return the lease
F. Curl up in fetal position
G.
H. Profit!

[thelma]

You guys seem to know your stuff. I'll throw a curve ball at you. Thanks in advance! :)

In 2011, I won a two year lease on a car from a raffle in Ohio. At the time I lived in PA. The organization that held the raffle provided me with a W2G after some encouragement. The organization, fortunately, withheld taxes for the federal filing on the W2G. As I understand it, I owe Non-resident Income Tax to Ohio. I should be able to deduct the tax paid to Ohio from my PA state income tax because of the agreement they have. Do I file a normal Ohio Personal Income form?
Here where the story gets confusing. At the time of winning the lease, nobody (the car dealer, myself or AAA) was exactly sure how to pay for the taxes on the lease. (I wasn't aware of W2Gs at that time). The dealership instead put together a sales tax for me to pay. I paid sales tax to PA DMV for the car. (the thinking behind this was when you lease a car, you make a monthly tax payment with your lease payment. Since the lease payment is covered by the organization, I paid an upfront tax for the two years).

I see no way to deduct the sales tax from the taxes due to PA. As it stands now, I stand to get taxed twice on the won lease. Any help or direction would be wonderful. I consulted a CPA, but their fees started at $400.

Let me know if more information would be helpful. I'm very appreciative to any advice you could offer.
The IT 1040 (OH) provides for a Non-Resident return, yes.

http://tax.ohio.gov/documents/forms/ohio_individual/individual/2011/PIT_IT1040.pdf

Q1: why did they (AAA?) issue a W2-G and not a 1099 for the taxes on the raffle win?
Was it because they were unfamiliar with the procedure?

Q2: What did the W2-G deem was the full amount of the 'Win'/Income? Did that amount include the Sales Tax (which you paid to PA DMV [I assume, upon titling/registering it])?

[Advocatus]

The IT 1040 (OH) provides for a Non-Resident return, yes.

http://tax.ohio.gov/documents/forms/ohio_individual/individual/2011/PIT_IT1040.pdf

Q1: why did they (AAA?) issue a W2-G and not a 1099 for the taxes on the raffle win?
Was it because they were unfamiliar with the procedure?

Q2: What did the W2-G deem was the full amount of the 'Win'/Income? Did that amount include the Sales Tax (which you paid to PA DMV [I assume, upon titling/registering it])?

Thanks for the form!

Q1: Sorry, for being confusing. The organization in Cincinnati that gave us the car, provided us with the W2G. I went to AAA to help us figure out how to register a leased vehicle. What made this weird is that we're not making payments. AAA just helped us title/register it.

Q2: The value listed on the W2G is $8000. The organization withheld around $2000 for it (I don't have the form in front of me). I don't believe that has anything to do with the sales tax we paid to the PA DMV. They might have that information, because we originally paid the tax to the Ohio dealership where we picked up the car, when we signed the lease agreement. They then mailed us a check for the amount we paid, made out to the PA DMV from the dealership. This was all very confusing, so we sought help from AAA.

It's quite a bummer to have to basically pay taxes on the vehicle twice, once in winning it as income, and then once upon registering it as sales tax. We paid $757 in sales tax when we registered the vehicle. That should be for the two years of the lease. I now have to request to receive half of that money back, because in September of 2011, I moved to Virginia.

Thanks for the help!

[thelma]

Thanks for the form!

Q1: Sorry, for being confusing. The organization in Cincinnati that gave us the car, provided us with the W2G. I went to AAA to help us figure out how to register a leased vehicle. What made this weird is that we're not making payments. AAA just helped us title/register it.

Q2: The value listed on the W2G is $8000. The organization withheld around $2000 for it (I don't have the form in front of me). I don't believe that has anything to do with the sales tax we paid to the PA DMV. They might have that information, because we originally paid the tax to the Ohio dealership where we picked up the car, when we signed the lease agreement. They then mailed us a check for the amount we paid, made out to the PA DMV from the dealership. This was all very confusing, so we sought help from AAA.

It's quite a bummer to have to basically pay taxes on the vehicle twice, once in winning it as income, and then once upon registering it as sales tax. We paid $757 in sales tax when we registered the vehicle. That should be for the two years of the lease. I now have to request to receive half of that money back, because in September of 2011, I moved to Virginia.

Thanks for the help!
Hi Advocatus.
If you believe the fair market value of the lease was $8K, then that's fine. If you believe (and can prove, with documentation) that it was overstated, then override the amt on the W2-G to reflect what the value really was.
I'm going to assume that the value stated on the W2-G was a sum of 24 lease payments, without Sales Tax (which you paid to PA DMV).
As far as 'getting back'/double taxed because of the Sales Tax... well, not really, unless the value DID include an amt for Sales Tax.
Whether you won the car/lease, or went out on your own and leased or purchased a car with you own cash, you would have had to pay ST. So you could look at it this way: you got the use of a new car for a MUCH reduced cost.
Not that bad, really!

And even if the Value on the W2-G DID include an amt for Sales Tax (which it technically shouldn't, since the Grantor didn't pay the ST for you), you're only being taxed on a percentage of that amount.

It's not really a case of being double-taxed, rather, there are two separate but distinct taxes involved since it's an item that is subject to Sales Tax (a car); again, assuming the Value of $8K did NOT include an amt for Sales Tax.

I think this is correct: in PA, Sales Tax on leased vehicles is 9-10% per month based on the payment amt?
Normally collected in the monthly payment by the dealership and remitted to the DMV.
But they collected the full amt from you up front because you had no monthly payments (it was a 'prize')... now you need to try to recoup some of that since you're living in VA... THAT is a sticky situation... I'm sure DMV makes it very difficult to get a refund... ugh.

[Advocatus]

Thelma,

Thanks so much for all of your assistance. Dealing with taxes is rather nerve-wracking, especially with odd transactions such as these. Thank you for taking time out of your day to response and share your experience. It is greatly appreciated.

thanks!
David

[Maximus56K]

Thelma I have a question for you. Would you consider running against Obama as an independent! I think you could really win and straighten this whole mess for us. Seriously!!!!!


Vote THELMA in 2012!

[mst011m]

Anyone know how to find a win/loss statement from the Bellagio site?

[hlaburg]

Anyone know how to find a win/loss statement from the Bellagio site?

Log into your Mlife account and you should find it there