Taxable payout?

[Eduardo]

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?

[details]

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.

[Eduardo]

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.

[details]

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

[rascal]

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.

[BooyNY]

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.

[Eduardo]

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

[Mr. Aces]

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!
 
 

[rascal]

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.

[Eduardo]

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