not sure this is the right forum - but then none of the others fit either - hopefully some of the more experienced players can give me some info/advice - may benefit other newbies as well - I started playing tournaments last December - and recently - in two tournaments - before I was paid off - they did a Cash Transaction Report for my winnings - this is not the IRS tax thing - like I have had to do for race bets before - and the CTR stated that I was being paid for a "jackpot" - the amounts were for $2,600 and $1,000 - so - are these reported to the IRS - if so how/as what - do I need to declare these as gambling income - balance with gambling losses???? how are these things handled - what is the tax liability? RKuczek
W-2G form Normally a W-2G form is what is used for gambling/gaming taxes. Here is a link for more information: Form W-2G Instructions Hope this helps you out.
wasn't a W2G form - that is why I am a little confused it wasn't a W2G form - I am familiar with those from "signer" tickets at the race track - those I know go to the IRS as reportable gambling winnings - these were "Cash Transaction Reports" and I was not given a copy of the form - it was definitely not a W2G - said clearly "Cash Transaction Report" - and said payment was for a "Jackpot" - when I asked the casino personnel (twice) what was being done/filed - they said "we file a 1099" - that confused me for a little bit - as that is what my consulting clients file to report their payments to me for professional services - but then I realized it was also the form you report prizes and awards payments on - except - they were making everyone sign a CTR - even those who only won $100 or $200 - another player I talked with said he had signed several CTR at the same casino - and 'they don't report them to the IRS' - I took that to mean that he didn't claim the winnings on his tax return and the IRS did not question him on that - but none of his winnings - from what he said - were as large as $1,000 - so - I thought casinos only did cash transaction reports on cash payments of more than $10,000??? or ??? anyone who has dealt with the tax situation on these CTRs/1099s - I would appreciate your wisdom/experience - it would help save me and maybe some other newbies some IRS researching
Not sure? I've had 12 win's over $10,000 or more and never had one of those! Sorry I wasn't able to help you.
More confusion??? I had a few winnings under $600 at local casinos and they had me sign a document acknowledging receipt of the funds. When I inquired, they said that if my tournament play winnings exceeded a total $600 for the year, then they would issue a W2G. Don't know if this helps but I'm just throwing it out as additional info. If a 1099 or W2G is sent to the IRS by anyone, isn't it a requirement that they send a copy to the individual also?
The CTR goes to the Treasury Department, and is generated whenever a customer transacts more than $10,000 in cash in one day. Why they would have filled them out in a tournament with much smaller prizes I don't know. Now, if you start buying in at a table or the cashier for more than about $3000, they'll generally start asking questions, because they need to add up all your activity and file if you go over $10K in one day. The penalties if they fail to do so are severe. And, Tex, if you've cashed out more than $10K, you've had these filed before. You normally wouldn't even know about it if they already have your player information. You don't have to sign them. I don't believe this information is provided to the IRS, but who knows. I recommend everyone pay taxes on their profits. I certainly do.
Ken - thanks for the info - this is what I was thinking - their doing a CTR and saying they would file a 1099 didn't make since - the CTR is actually to track terrorists and drug dealers and money laundering - and a 1099 misc is to record moneys won in raffles and drawings and contests and such - not for gambling - and why they would track the smallest payouts is ??? - this is a local Indian casino - so - CTRs and 1099s don't really have anything to do with each other - maybe they are tracking for multiple wins - and would file if the total for the year goes over a certain amount -?? - I don't object to paying taxes on profits - but want to know if I can deduct gambling losses - entry fees and expenses - or have to treat as a 'lottery win' with no deductions from the total - etc. - what this casino did doesn't make sense - and despite questioning two casino employees - I couldn't get anything out of them other than it was a Cash Transaction Report and they filed a 1099 RKuczek
Reporting to IRS Unless you are a professional who would file a schedule C as a sole proprieter treating gambling as a profession, your gambling winnings are normally reported as other income on your tax return and the gambling losses are reported as miscellaneous itemized deductions on your schedule A: itemized deductions. Gambling losses reported on schedule A can't exceed your gambling income shown as miscellaneous income. It is also probably best to report consistently every year, even if the net is zero so you can establish that you have been reporting so the year you do have a big win it doesn't look funny that you have a lot of expenses to offset the win. If you keep good records each year you should not have any problem.
Ctr My question was going to be was it an Indian Casino but you answered that above. I also had a large Tourney win (5 figures) at a Indian casino and they also had me sign a CTR. When asked what it was for they stated to me that it was only kept on file to disprove money laundering if needed. They also stated that they did not report winnings in a tourney that required an entry fee, to the IRS. Good Luck, Dan
Thanks to all Thanks to all who responded - I still don't understand what the casino did - but - indian casinos can kind of make up their own rules and ways of doing things - one player did tell me they did not actually report your winnings - but - then why record them - ? I am familiar with filing gambling winnings and deducting losses - from betting on races - so will just treat this the same way - I am a few thousand ahead at this point - can't imagine losing it all back playing smaller tournaments - would take a lot of $25 entry fees to get down to break even - thanks for the advice info
