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Edited on Tue Jun-03-08 07:03 AM by melm00se
any significant amount of money gambling you have to provide a valid SS # for a W-2G.
According to the IRS the rules are:
...winnings of $1,200 or more from slot machines and bingo are taxable. As for on-the-spot withholdings, there shouldn't be any on jackpots of less than $5,000, unless you fail to provide a valid social security number, in which case they can withhold 29% of the booty won. If the spoils are more than $5,000, the casino is required to withhold 25% of the proceeds for Federal Income Tax.
...winnings on all table game progressive side bets with payouts of 300 to 1 or more are fair game for the IRS. Although W-2Gs are not required for typical wagers won from table games such as blackjack, craps, baccarat, roulette, etc., even if you got a decent chunk of change on the layout -- but regardless of the amount, casinos are still subject to the "Money Laundering Rules", and must report to the IRS, using a Cash Transaction Report (CTR), aggregate cash transactions of $10,000 or more in any one day.
...winnings of $1,500 or more from keno, less the cost of the tickets bought on the winning game.
...winnings of $600 or more from horse racing, dog racing, or jai alai, if the winnings are at least 300 times the wager.
...winnings of $600 or more from poker tournaments
...and winnings of $600 or more from state lotteries.
Do i really need to point out the difference between a casino payout and church donations?
Casinos, in many cases, already act as agents for the federal government in withholding and disbursing tax revenues per above.
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