Video pokee + taxes

[stevel96a1]

Assumming you are playing vp at. 50 cent level you will need 7 royal +1 to claim without paying 1/3 of your wiinning? So 300$X7 is 2100 of taxed royals what am i missing?

[stevel96a1]

In other words the gov gets his fullnroyal after you get 7 if you are on the radar?

[FloridaPhil]

My understanding is the new tax law does not change the ability of a tax payer to offset Federal W2Gs with documented losses up to the amount of their winnings.  In order to do this you must itemize your return.  Because the standard deduction was doubled, many taxpayers that previously itemized will no longer do so.   Without itemizing, any winnings in excess of losses are thrown into gross income and taxed at your regular rate.The law does change some deductions for "professional gamblers".  I don't know any, so you would have to ask one how they feel about them.  If you are asking how much of your winnings will be eaten up by taxes, it depends upon your State taxes and how much you win over your losses.  Frankly, I do not think many members of this forum will have any new tax problems other than the itemizing requirement. Anyone in a high tax bracket most likely has an accountant who itemizes their return.  Anyone who owns real estate, a business or has large amounts of investment income must itemize to get the full benefit of the tax laws.

[Eduardo]

I guess FP understood the question different from me. I didn't understand it at all. A royal at the 50 cent level will pay you $2,000. How much you end up being taxed will depend on your tax bracket and your deductions.I don't know what the 7 + 1 and 300 are, or the radar.

[stevel96a1]

Its usually 1/3 of your winning 1/3 of 2000 is 300 hows that hard to understand?

[FloridaPhil]

[quote=Eduardo]



I guess FP understood the question different from me. I didn't understand it at all. [/quote]I didn't understand it either.  I was taking a SWAG (Scientific Wild Ass Guess).    I think he is assuming all royals are taxed the same?  Your taxes on a royal flush could range from zero to the highest tax bracket of 39.6% plus any State taxes where applicable.  Most players lose more than they win, so they pay no taxes if they document and itemize their return.  Some States do not allow gambling loss offsetting.If you are asking how much they withhold from your payout, that is done on a casino to casino basis.  I have never had a casino withhold money from a hand pay except in Mississippi where they take 3% off the top with no hope of ever seeing it again.  For this reason when I play in Mississippi, I never play any VP game that could trigger a hand pay.

[Eduardo]

Its usually 1/3 of your winning 1/3 of 2000 is 300 hows that hard to understand?I guess it's been a while since I was in math class.

[FloridaPhil]

666.666666667 plus comps.   

[stevel96a1]

Well its roughly 300$ on 2000 (3/2100 is one third of my taxes)so i need to get 7 royal so uncle sam gets his royal now that house edge just imcreased in my opinion

[olds442jetaway]

All gross gambling winnings are taxable. Technically, that has nothing to do with getting a W-2G or not. Everything goes by a session base. At least for now. There may be changes coming in the future. For instance, you could hit a hand pay Royal for 2k and later in the session blow it all and then some. You would have no gross taxable income for that session. However, there will be a w-2g issued so you will have to deal with that when you itemize your deduction to offset your gambling losses. The reporting can get quite tricky and that is why it is important to keep good records. If you live in a state like CT, you will get hit on that 2k amount on your state income tax return and be unable to write it off. Taxable gambling events are different for every taxpayer. If you only went to the casino once and had that one session, your gambling write off of the 2k would be quite simple. Also included in other income are things like prizes and awards. If on that one trip to the casino you had a net loss of 500 bucks for the session, you would not lose any of the hand pay to federal taxes, but that assumes that is all the gambling you did for the year, you itemized your deductions, and your return would still be complicated by the fact that the w-2g was issued. There is no one size fits all for reporting gambling winnings except that all gross gambling winnings are taxable and you can only write them off by itemizing their deductions and only up to the extent of the gambling winnings on the Federal side. Please note. The above post is my own opinion. Each person should do their own tax research and consult their own tax advisers.