When Fed Tax or No Fed Tax?

[olds442jetaway]

Wtg!!! Heeeeee

[olds442jetaway]

I made the mistake last session of wearing Versace Dylan Blue and that is exactly how I felt when the session was over.

[dinghy]

I made the mistake last session of wearing Versace Dylan Blue and that is exactly how I felt when the session was over.

I have in-laws in the Southeast. Down there, "cologne" is a 3-syllable word.

[olds442jetaway]

[ukaserex]

I'm late to this, but it just seems foolish to let the casino doing any withholding from your jackpots. You know how much you make, if you have job. Just take half of the jackpot and put it in an interest bearing account or the market until it's time to pay taxes. Why would anyone let the feds hold money for them? It's not like they use it responsibly or anything.

[olds442jetaway]

Depending on the specifics on how much you won for the year and your total income, you could end up with a hefty Estimated Tax Penalty. Most if not 99.9 percent of people will not be ahead on VP by year end. However, if you do not itemize your deductions, you cannot offset gross gambling winnings with losses on your tax return. All of this can make a huge difference in your ultimate tax liability.

[Lucky Larry]

I'm late to this, but it just seems foolish to let the casino doing any withholding from your jackpots. You know how much you make, if you have job. Just take half of the jackpot and put it in an interest bearing account or the market until it's time to pay taxes. Why would anyone let the feds hold money for them? It's not like they use it responsibly or anything.

One issue that can develop which impacted us is that the one quarter when I don't get paid we hit big and it killed us by not paying enough taxes.

[olds442jetaway]

Everyone has their own method on this issue. Some have no method at all and just wait for an IRS bill and that can really get expensive. Unfortunately, to offset the Gross winnings, we have to itemize our deductions. I get destroyed in two areas. The tax law changed in 2018 which limited State and local tax deductions to 10,000 bucks when itemizing. My State withholding alone at 7 percent is over that amount many years. The other one is the State of Ct itself. Here one is taxed on Gross Gambling winnings. You could have and probably did lose it all by year end. You Still pay State income tax on the entire gross amount of gambling winnings.

[TripleTriple]

Why would anyone let the feds hold money for them?

Because I don't like to owe. Wife has five figure income from state of NJ which the payers refuse to withhold taxes, even though I insist that if they issue a 1099-MISC- with a box specifically for federal tax withheld- that you should be able to elect to have it taken out. So I take one for the team and have it taken out to compensate. But I only have it taken out for over 2K. 2K or less I normally will put back in machine and increase my wager.

[ukaserex]

I make a point to tell them to not withhold anything. It makes no sense in giving the government an interest free loan.
I also make a point of pulling 30% of each jackpot out in the form of a check, so I can be sure I don't spend what may be taxed when the time comes.