Been wondering if you go place a wager in Vegas for 10 grand on 1 game and win do they withhold a certain amount for tax ,are do they make you sign out a forum? if anyone knows how it works please share thanks
How does Gambling tax for sports wagers work in Vegas
- Thread starter imawinner21
- Start date
A sportsbook supervisor told me if u win $10,000 u have to fill out paper work,i'm guessing for tax purposes but $9,999 ur good :0074 Basically break up ur bets in diff sportsbooks if you plan on winning anything over 10K
Short Answer:
The only way you (American citizen) can cash a ticket in the sports book that will trigger IRS tax withholdings (a W2-G) is if you cash a winning ticket that
1 - hit odds of 300-1 or more, and
2 - had a payout of $600 or more.
Very rare in the sports side hitting parlay or future bet that pays like this, more common in the race book side with their superfectas and such.
the $10,000 cash reporting deal (sportsbook does the paperwork, you provide the ID and SS#) is also an IRS requirement - but it has no tax implications. It is for tracking large cash transactions for purposes of monitoring possible money laundering.
Long Answer:
different parts of casino can have way different rules in tax withholding. For slot machines, etc, it's $1,200 limit that will trigger taxes. The racebook has a few more I can't recall. Ya got that $5K thing in poker rooms, etc...
But in sportsbook you can hit a 5-way parlay that you put $5K on and payed out $100K and you will suffer no tax withholding on this because it was 20-1, not 300-1 or greater. You can hit a straight bet and win $100K, cash that, and similarity -- no taxes would be deducted from your payout.
but taking all those winning in cash would trigger a CTR (Currency/Cash Transaction Report) to be filed on you. For this you must show your ID and give your tax ID (Social Security) number because cash of $10,000.01 or greater was passed across that payout window.
The $10K deal is any cash transaction. So if you put $10.5K bet on the Steelers, the book will generate at CTR right then, when you placing the bet. Easy for them to do the CTR if you give 'em players card - with that card they can get all the info on computer instantly for the IRS form.
The CTR is not filed for any tax purposes, the IRS does this to track large cash transactions in their fight against money laundering.
If you cashed the big win at casino cage and asked for $10K cash, and the rest in chips (i.e, not cash or currency), the casino would not have to file a CTR on your lucky ass. But that's pretty damn suspicious you are committing a crime called structuring (deliberately structure payouts in manner to avoid CTR), so they'd most certainly do, as required by law, file a SAR (Suspicious Activity Report) on you. SAR is triggered at a $5K threshold.
But most cages are pretty suspicious and a picky lot too, so they'd most certainly ask for ID in this instance, as they assuming you'd cash in the chips soon - the $10K CRT reporting threshold is an aggregate amount over a single 24 hour period.
They would also check your MTLs, even for $5.5K payouts. The MTL is a "Multiple Transaction Log" that records $5,000 or greater transactions. Every gaming pit records these, or employees involved in chip redemption, chip purchase, markers payed in cash, safekeeping deposit, payoff in cash, etc. MTLs aren't for the IRS. MTLs are an in-house deal casinos do to track transaction activities that may trigger CTRs and SARs.
For example, the casino, with these MTLs, finds you moved cash of $10,000.01 or more across that casino cage (or sports book window) in separate transactions in a 24 hr period, each below $10K, but totaling in aggregate at least $10,000.01 - then they will file a CTR on you. And maybe a SAR too, if it looks suspicious (you do it often, look like drug dealer, counterfeiter, etc.) SARs aren't filed much, but you get enough of them and the IRS or Secret Service will want to meet and greet you. This is not a recommended social activity.
CTRs are filed all the frikkin' time and hardly anyone ever pays much attention to them.
If you refuse to show players card, or ID and SS# when they ask - then they will note that in a file, write up a description of you, probably 86 you from the property, won't cash your ticket, flag it so no one else can cash it until proper info given (and ask if you a runner for someone else too).
And, yes, if you Canadian, Mexican or from them other furrin nations who have no gaming treaty with U.S. (there's a lot of 'em), you will be subject to an automatic 30% in taxes withheld. Countries that do have the treaty (Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, dozen more) you just give them yer I.T.I.N number and you get no tax taken out.
Tho Canadians [under Treaty Article XXII (Protocol 3)] you can offset your gambling winnings with gambling losses by filling out the Form 1040NR return, and get some refund.
IRS W2-G CTR SAR MTL I.T.I.N Treaty Article XXII 1040NR (casinos love the Federal Government as much as ex Las Vegas Mayor Oscar Goodman does)
The only way you (American citizen) can cash a ticket in the sports book that will trigger IRS tax withholdings (a W2-G) is if you cash a winning ticket that
1 - hit odds of 300-1 or more, and
2 - had a payout of $600 or more.
Very rare in the sports side hitting parlay or future bet that pays like this, more common in the race book side with their superfectas and such.
the $10,000 cash reporting deal (sportsbook does the paperwork, you provide the ID and SS#) is also an IRS requirement - but it has no tax implications. It is for tracking large cash transactions for purposes of monitoring possible money laundering.
Long Answer:
different parts of casino can have way different rules in tax withholding. For slot machines, etc, it's $1,200 limit that will trigger taxes. The racebook has a few more I can't recall. Ya got that $5K thing in poker rooms, etc...
But in sportsbook you can hit a 5-way parlay that you put $5K on and payed out $100K and you will suffer no tax withholding on this because it was 20-1, not 300-1 or greater. You can hit a straight bet and win $100K, cash that, and similarity -- no taxes would be deducted from your payout.
but taking all those winning in cash would trigger a CTR (Currency/Cash Transaction Report) to be filed on you. For this you must show your ID and give your tax ID (Social Security) number because cash of $10,000.01 or greater was passed across that payout window.
The $10K deal is any cash transaction. So if you put $10.5K bet on the Steelers, the book will generate at CTR right then, when you placing the bet. Easy for them to do the CTR if you give 'em players card - with that card they can get all the info on computer instantly for the IRS form.
The CTR is not filed for any tax purposes, the IRS does this to track large cash transactions in their fight against money laundering.
If you cashed the big win at casino cage and asked for $10K cash, and the rest in chips (i.e, not cash or currency), the casino would not have to file a CTR on your lucky ass. But that's pretty damn suspicious you are committing a crime called structuring (deliberately structure payouts in manner to avoid CTR), so they'd most certainly do, as required by law, file a SAR (Suspicious Activity Report) on you. SAR is triggered at a $5K threshold.
But most cages are pretty suspicious and a picky lot too, so they'd most certainly ask for ID in this instance, as they assuming you'd cash in the chips soon - the $10K CRT reporting threshold is an aggregate amount over a single 24 hour period.
They would also check your MTLs, even for $5.5K payouts. The MTL is a "Multiple Transaction Log" that records $5,000 or greater transactions. Every gaming pit records these, or employees involved in chip redemption, chip purchase, markers payed in cash, safekeeping deposit, payoff in cash, etc. MTLs aren't for the IRS. MTLs are an in-house deal casinos do to track transaction activities that may trigger CTRs and SARs.
For example, the casino, with these MTLs, finds you moved cash of $10,000.01 or more across that casino cage (or sports book window) in separate transactions in a 24 hr period, each below $10K, but totaling in aggregate at least $10,000.01 - then they will file a CTR on you. And maybe a SAR too, if it looks suspicious (you do it often, look like drug dealer, counterfeiter, etc.) SARs aren't filed much, but you get enough of them and the IRS or Secret Service will want to meet and greet you. This is not a recommended social activity.
CTRs are filed all the frikkin' time and hardly anyone ever pays much attention to them.
If you refuse to show players card, or ID and SS# when they ask - then they will note that in a file, write up a description of you, probably 86 you from the property, won't cash your ticket, flag it so no one else can cash it until proper info given (and ask if you a runner for someone else too).
And, yes, if you Canadian, Mexican or from them other furrin nations who have no gaming treaty with U.S. (there's a lot of 'em), you will be subject to an automatic 30% in taxes withheld. Countries that do have the treaty (Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, dozen more) you just give them yer I.T.I.N number and you get no tax taken out.
Tho Canadians [under Treaty Article XXII (Protocol 3)] you can offset your gambling winnings with gambling losses by filling out the Form 1040NR return, and get some refund.
IRS W2-G CTR SAR MTL I.T.I.N Treaty Article XXII 1040NR (casinos love the Federal Government as much as ex Las Vegas Mayor Oscar Goodman does)
T Ray....as a Canuck you get roughly 23-26 percent (of the 30 percent) of the money back when you return to Canada.
It takes some time but eventually you get most of it back. And if you have a good lawyer you can sometimes get it all back.
:0008
It takes some time but eventually you get most of it back. And if you have a good lawyer you can sometimes get it all back.
:0008
The guy in town who had the St Louis Cards 999/1 World Series ticket? The MGM tribe took 25% out of his winnings right on the spot.
Taxes on gambling winnings
There are some things you should know if you are lucky enough to win. The Internal Revenue Service (IRS) requires all casinos in certain instances to withhold federal taxes if you win over a certain amount. The percentage withheld ranges between 25 and 30 percent depending on how you won. Here is how it works.
If you had gambling winnings, the casino is required by the IRS Information Reporting rules to withhold 28% as income tax if you do not provide a documented TIN (Taxpayer Identification Number, that is, your Social Security Number.) We have heard of cases where it is withheld no matter what. The withholding tax is 30% if a foreign gambler. The tax rate is 25 percent if the amount is over $5,000 (except for non-resident aliens.)
When your winnings exceed a specified threshold and/or tax is withheld, the casino will give you an IRS Form W-2G showing the amount you won and the amount of tax withheld. Report (and take credit for the tax you paid) on your IRS Form 1040 tax return at the end of the year. (Only use Form 1040 if you had gambling winnings; you cannot use any other form.) IRS Form W-2G
Generally, gambling winnings are reportable to the IRS if the amount paid is (a) $600 or more and (b) at least 300 times the amount of the wager. This requirement primarily applies to lotteries, sweepstakes and other big winnings from small bets. It does not apply to winnings from bingo, keno, and slot machines.
Casinos report gambling winnings for these games to the IRS when a player wins $1,200 or more from a bingo game or slot machine or if the proceeds are $1,500 or more from a keno game. When you exceed these amounts, the casino may withhold taxes and will provide you with IRS Form W-2G. They keep the original and give you two copies of the form. (If state income tax withholding is required on gambling winnings in your state, additional taxes may be withheld.)
The rules are different for table games (such as blackjack, baccarat, craps, roulette or other spinning wheel games.) Since Nevada casinos do not know the amount you started with, they are not able to determine how much you won (...your taxable gain.) As a result, federal law provides that there is no withholding or even reporting of table game wins to the IRS. It therefore follows that table game winners probably do not report their gambling profits to the IRS.
You not only pay taxes on gambling profits, but you can also claim gambling losses as an itemized deduction as well. But you must keep some kind of documentation (such as a diary or tickets) to substantiate the amount and nature of the losses. In any event, you cannot claim gambling losses that exceed your winnings.
ITS 10000 NON RESIDENTS
There are some things you should know if you are lucky enough to win. The Internal Revenue Service (IRS) requires all casinos in certain instances to withhold federal taxes if you win over a certain amount. The percentage withheld ranges between 25 and 30 percent depending on how you won. Here is how it works.
If you had gambling winnings, the casino is required by the IRS Information Reporting rules to withhold 28% as income tax if you do not provide a documented TIN (Taxpayer Identification Number, that is, your Social Security Number.) We have heard of cases where it is withheld no matter what. The withholding tax is 30% if a foreign gambler. The tax rate is 25 percent if the amount is over $5,000 (except for non-resident aliens.)
When your winnings exceed a specified threshold and/or tax is withheld, the casino will give you an IRS Form W-2G showing the amount you won and the amount of tax withheld. Report (and take credit for the tax you paid) on your IRS Form 1040 tax return at the end of the year. (Only use Form 1040 if you had gambling winnings; you cannot use any other form.) IRS Form W-2G
Generally, gambling winnings are reportable to the IRS if the amount paid is (a) $600 or more and (b) at least 300 times the amount of the wager. This requirement primarily applies to lotteries, sweepstakes and other big winnings from small bets. It does not apply to winnings from bingo, keno, and slot machines.
Casinos report gambling winnings for these games to the IRS when a player wins $1,200 or more from a bingo game or slot machine or if the proceeds are $1,500 or more from a keno game. When you exceed these amounts, the casino may withhold taxes and will provide you with IRS Form W-2G. They keep the original and give you two copies of the form. (If state income tax withholding is required on gambling winnings in your state, additional taxes may be withheld.)
The rules are different for table games (such as blackjack, baccarat, craps, roulette or other spinning wheel games.) Since Nevada casinos do not know the amount you started with, they are not able to determine how much you won (...your taxable gain.) As a result, federal law provides that there is no withholding or even reporting of table game wins to the IRS. It therefore follows that table game winners probably do not report their gambling profits to the IRS.
You not only pay taxes on gambling profits, but you can also claim gambling losses as an itemized deduction as well. But you must keep some kind of documentation (such as a diary or tickets) to substantiate the amount and nature of the losses. In any event, you cannot claim gambling losses that exceed your winnings.
ITS 10000 NON RESIDENTS
Casino Tax Refund At Refund Management Services
Casino Tax Refund At Refund Management Services
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Casino Tax Refund At Refund Management Services
spam, banned
