CAS and taxes on winnings

[hpecorari]

I was always under the impression that if you won on the ship that you didn't have to pay tax on the winnings because (1) you are out in international waters and (2) the ships are registered in the Bahamas except for POA.

 

So, herein lies my question. Why was I taxed on one of the NCL cruises I took? I was never taxed on any other NCL cruise I took.

 

Harriet

[Alliezona09]

IRS always wants their share~ you will be taxed on any amount over, I think $1200.

[hpecorari]

IRS always wants their share~ you will be taxed on any amount over, I think $1200.

 

That's still strange since I've won a hand payout over $1,200 before and only one time have ever been taxed.

 

Harriet

[gooch47]

Can't speak for NCL, but you are taxed on Princess ships since their parent company, Carnival, is a USA company.

[Fishbait17]

I have received a W-2G for every jackpot over $1200 on NCL ships (too few and far between lol). You basically get one when you get a single win over $1200 but not if you accumulate several smaller winnings ($1199 or less each) and cash out over $1200 (hope that makes sense). If you are a regular player (which I know you are Harriet) you most likely will have enough losses to cancel out winnings and owe no taxes. That's why it's good to belong to loyalty programs like TR to track your play - when you sign on on the websites (or call, in the case of CAS) you can request a Win/Loss Statement. When you claim the W2-G wins on your taxes, there is a line under it to subtract losses, and they almost always zero out the winnings, unfortunately.

 

Robin

[hpecorari]

I have received a W-2G for every jackpot over $1200 on NCL ships (too few and far between lol). You basically get one when you get a single win over $1200 but not if you accumulate several smaller winnings ($1199 or less each) and cash out over $1200 (hope that makes sense). If you are a regular player (which I know you are Harriet) you most likely will have enough losses to cancel out winnings and owe no taxes. That's why it's good to belong to loyalty programs like TR to track your play - when you sign on on the websites (or call, in the case of CAS) you can request a Win/Loss Statement. When you claim the W2-G wins on your taxes, there is a line under it to subtract losses, and they almost always zero out the winnings, unfortunately.

 

Robin

 

I agree Robin but I could swear that I never received a W2-G before from NCL. Maybe I'm wrong! LOL I know every year I print out a win/loss statement, have to go and get it notarized, and send it in to them for them to e-mail me that statement.

 

My husband wants to know why they don't track it like that with blackjack. At least on land based casinos (Harrah's) he can win $3,000 but they never say a thing when he cashes in. However, slots are different. We don't understand why! LOL

 

Harriet

[hpecorari]

Can't speak for NCL, but you are taxed on Princess ships since their parent company, Carnival, is a USA company.

 

That I know. I was on one of their ships from LA to Hawaii and was taxed.

 

Harriet

[emcelh]

I agree Robin but I could swear that I never received a W2-G before from NCL. Maybe I'm wrong! LOL I know every year I print out a win/loss statement, have to go and get it notarized, and send it in to them for them to e-mail me that statement.

 

My husband wants to know why they don't track it like that with blackjack. At least on land based casinos (Harrah's) he can win $3,000 but they never say a thing when he cashes in. However, slots are different. We don't understand why! LOL

 

Harriet

 

I've only gotten one W2-G on a ship and it was for a win on a penny slot of $1202, just $2 over the limit. Maybe the difference might be that the blackjack winnings are accumulated over a period of time but the slot jackpot is usually on 1 spin. I also won a little over $2000 on a free spin bonus at Mt. Airy in the Poconos a couple of weeks ago (amazing on a penny slot) and got a W2-G for it.

[Richie2pies]

What winnings?

[NLH Arizona]

Last year I won $1,700 on the Pearl. I got a W2-G when they paid me the jackpot.

[FLAHAM]

I was always under the impression that if you won on the ship that you didn't have to pay tax on the winnings because (1) you are out in international waters and (2) the ships are registered in the Bahamas except for POA.

 

U.S. residents are taxed on their world-wide income. Credits may apply for taxes paid abroad for income earned abroad.

[HMK8273]

U.S. residents are taxed on their world-wide income. Credits may apply for taxes paid abroad for income earned abroad.

 

And income is income - you win money, it is reportable - even if you don't get a W-2G. Just because the IRS doesn't know about it, doesn't mean it isn't taxable income. So if you win $500, that is income even though NCL isn't required to report it to the IRS.

 

Then there is the whole gambling loss question - talk to your tax advisor about how to handle this stuff because the IRS likes to crack down on this from time to time because some people take advantage of the rules and it is very difficult to document.

[hpecorari]

 

Then there is the whole gambling loss question - talk to your tax advisor about how to handle this stuff because the IRS likes to crack down on this from time to time because some people take advantage of the rules and it is very difficult to document.

 

I always get a win/loss statement and give that to my accountant along with all my other papers.

 

Harriet

[sassyshar]

Won $4700 on the SKY last December, all on one spin. Yes I got a W2 to report to the Federal and State as income. The Federal can be written off if you have (and can prove) losses, but in Michigan you must pay state taxes on the winnings regardless of your reported losses. Taxes were about $300, still a win. Hope to do it again in about 7 weeks LOL.

[whenisthemidnightbuffet?]

I agree Robin but I could swear that I never received a W2-G before from NCL. Maybe I'm wrong! LOL I know every year I print out a win/loss statement, have to go and get it notarized, and send it in to them for them to e-mail me that statement.

 

My husband wants to know why they don't track it like that with blackjack. At least on land based casinos (Harrah's) he can win $3,000 but they never say a thing when he cashes in. However, slots are different. We don't understand why! LOL

 

Harriet

 

Table game winnings are not taxed because theoretically can't prove your cash in to come up with the win. However, on certain games with a Bonus payout like let it ride, Caribbean stud, etc. the bonus payouts are taxed with payout of $1200 or more because that is considered a win.

[NJBill]

U.S. residents are taxed on their world-wide income. Credits may apply for taxes paid abroad for income earned abroad.

 

or you gain can be offset by documented losses at tax time.

[terrymtex01]

I was always under the impression that if you won on the ship that you didn't have to pay tax on the winnings because (1) you are out in international waters and (2) the ships are registered in the Bahamas except for POA.

 

So, herein lies my question. Why was I taxed on one of the NCL cruises I took? I was never taxed on any other NCL cruise I took.

 

Harriet

 

OMG this hasn't been the case for YEARS. The US changed the laws so that any cruise leaving from a US port, if you are a US citizen, you pay taxes on any winnings.

[corkpopr]

so here is the deal. slot and other machine winnings are very high odds for the bet made and that is why at 1200 or more a W-2g is issued. it used to be a 1099G. table games are usually no more than 3-1 so if you could get the casino to accept a 5000 straight up bet and you won you would not receive a W-2g for the 5000 in winnings.

 

As far as losses being deducted against winnings you need to use your players card all the time so the casino has your cash in/cash out history. although the losses can be offset against winnings, the winnings go on the front page of your 1040 and it raises your adjusted gross income causing more of your social security to be taxable is you are already collecting it. also, a lot of people whose homes are paid off do not itemize and then your losses are also lost for tax purposes.

 

yes, i am an accountant LOL

[FLAHAM]

a lot of people whose homes are paid off do not itemize and then your losses are also lost for tax purposes.

 

Gambling income may be reduced by gambling losses within the same tax year. Both winnings and losses are often difficult to prove. If the taxpayer is not a gambler by profession (also difficult to establish), losses in excess of winnings are not deductible.

[Twelvevman]

Table games will get a W2 on any transactions of $10,000 in a single day. If you have a great day at the tables you are better off cashing in over several days or getting some help from a friend to avoid the reporting.

[corkpopr]

The 10,000 rule is a currency transaction report that must be filed on any financial transaction in or out of 10,000 or more. If you walk in and buy 15000 worth of chips on the first day, the cruiseline will report it. If you cashout at the end of the cruise and it is over 10,000 they will report it. Now it follows that if a 10,000 transaction was reported and you do not show gambling winnings on your tax return yes the IRS will catch you!

[jwm51]

Be VERY careful with this!:eek:

 

Any taxable income (winnings included) over $1200 SHOULD be reported!:p

 

Otherwise, I see a possible audit in your future!:eek::(

 

Trust me, I know first hand!:mad:

[hpecorari]

Be VERY careful with this!:eek:

 

Any taxable income (winnings included) over $1200 SHOULD be reported!:p

 

Otherwise, I see a possible audit in your future!:eek::(

 

 

Trust me, I know first hand!:mad:

 

 

Yes, but once they audit you......they can't audit you again in.....darn, I forgot in how many years! I know first hand!

 

Harriet

[elruth]

OMG this hasn't been the case for YEARS. The US changed the laws so that any cruise leaving from a US port, if you are a US citizen, you pay taxes on any winnings.

 

Terrymtex, I haven't read your posts in a few years. I still remember your detailed post re: your NYC visit and it was hilarious. I thought I read you had been ill. Are you feeling ok now? I used to enjoy reading your posts about your cruises.

 

Re: taxes. My husband got a Royal Flush when he was playing Texas Hold' Em against the dealer at a table. He won a lot more than $ 1200.00 and they never gave him a W2 form or any form. This was in May 2013. Should we expect some sort of form coming in the mail before the end of the year?Truthfully husband doesn't even remember the exact amt he won as it was the 3 rd hand played. He just cashed in the money after he played a few more hands. This was a NCL cruise leaving from Tampa.

[Lydfin]

When I won the progressive bingo $1925.00 on the Pearl, I was given a W2-g.

 

And yes you can be audited more than once, in back to back years even! I was audited in 2009 and 2010. I had all the pertinent documentation, and my audits were dismissed. Still a pain to go through.

 

 

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