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[QUOTE=spxChrome] Its strange to me I have won free play before and had to fill out a 1099 not W2G and at other casinos they don't require it. Not sure what the deciding factor is. Both were wins of $1000.
If the FreePlay was a prize or award of some sort, like a drawing, and over $600, I believe that a 1099MISC is required to be used for reporting. [/QUOTE]
1099 MISC because it is wagerless, but as notes1 stated, someone can spin on a $100 slot ten times and win nothing from it. So Freeplay has to be in a grey area.
Comps and Taxes?
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olds442jetaway
- Video Poker Master
- Posts: 10753
- Joined: Tue Aug 21, 2007 9:08 pm
This isn't a comp by any means, but how would like to get a 1099 misc like this. Your bank issues one to you because it reimbursed you more that 600- for the year in ATM fees from the casino. They counted it as prizes or awards. Refused to un issue it. You have no monetary gain out of this and only ended up where you were for arguments sake, out 5 bucks for 1 atm transaction and reimbursed the same 5 bucks by your bank. There of course is no revenue ruling on this per my research, so the bank is just trying to cover itself with the irs. Just insane to put it mildly. Well, they may just have cost themselves 60 years of my doing business with the same institution. Actually started in first grade when we used to fill up a cardboard bood with dimes and when it was full, take it to the bank as a class and open savings accounts. That would never happen today, but it was fun back then. Almost as much fun as a class trip to the local dairy which ended as free ice cream.
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olds442jetaway
- Video Poker Master
- Posts: 10753
- Joined: Tue Aug 21, 2007 9:08 pm
As to free play, this is my feeling on that. All they are giving you is the chance to win a wager. I don't care what the amount is. It is not cash in your pocket. That is different than when you swipe your card at the promotion kiosk and you are actually awarded cash. They keep track of that and at the end of the year, if the awards exceeded 600 bucks, you get a 1099. What could complicate it though now that I think about the free play is if the casino kept track of the free play let's say just 20 bucks. You play 16 hands at a buck twenty five a hand and hit a Royal for 1k. Do you then get a 1099 misc for the 1k plus whatever else you won on the 16 hands or does it still not count somehow as a prize or award.
