Video Poker Forum

I have seen a couple references to taxable jackpots and "W-2's" on here.  Can someone explain what those mean? Is there an amount you pay taxes if you are over and does it matter what state you are in/from etc?

In the state of ct, fed level gambling losses are deducted . state taxes on jackpots must be paid 5% $1200.00 or more. example you win $100,000 in taxble jackpots  over one year and lose $110,000 the state must be paid $5,000 still.I always pay state tax only in ct.

Well I have never come close to a jackpot (yet!)Interesting that you can deduct gambling losses. That's quite odd actually. I wonder what other states do that.

thats ct ! tax us to death state .......

Never pay federal tax, just state. On all of my jackpots I just pay state taxes no matter what state I am in. I always deduct the losses against the wins to the penny. I have never been contested or audited by IRS. Of course, if I won something like a big 200,000K jackpot it would be hard to get away with deducting losses. But for a 20K jackpot everyone can come up with 20K losses. Use a players card always, at the end of the year you can get printouts of wins and losses -- you will be amazed at how much in losses you can generate and a lot of it is cansino money, not your money.

Note that you can only deduct gambling losses UP TO the amount of your declared winning that year. So let's say you loss $10k this year but declared no winnings, you will not be able to claim your $10k lost as a deduction.

Oh I see well THAT certainly makes a little more sense.Thank you for clarifying, BooyNY.

W-2's are required for any jackpot of $1200 or more.  It is a Federal requirement.  Some states like MS will also collect State taxes at the time of the jackpot.
 
A W-2 occurs if you hit a royal playing 50 cents a hand.  4000 credits x .50 = $2000.  If you play Triple Play dollars in Double Bonus or Double Double and get dealt 4 3's and hold them you have at least $1200 ($400 x 3 = $1200) and you hope like heck you get a kicker!
 
 

It's actually W-2G, not W-2. There is a casino in Nevada that pays $1199 when you hit a $5 regular quad instead of $1250 to avoid the W2-G. This is fine with me because (a) you keep on playing and (b) the amont you would pay in tax and tip makes it even anyway.

(b) the amont you would pay in tax and tip makes it even anyway.Tip?