Casino Winnings?

[lmares1968]

Just interested in knowing the most you've ever won on board? How much you were taxed? What were you playing? [emoji383] [emoji456] [emoji568]

[Clarea]

I didn't think that tax was collected. It's not a US casino.

[matj2000]

Nobody really wins.

 

Except maybe the Capt's brotherinlaw......

[txcowboy10]

$4,500 jackpot... No taxes since at sea or reporting back to US

[Vitamin_Sea]

Taxes hehe? Dont expect to go home a winner although its possible maybe

 

The casino should be viewed as entertainment only!

 

Bet with what you dont mind losing.. :cool:

Edited November 10, 2014 by limoguy1

[lmares1968]

$4,500 jackpot... No taxes since at sea or reporting back to US

That's what I was wondering. I'm a newbie and wasn't sure. Thank you! [emoji4]

[lmares1968]

Even when I'm winning, my hubby is losing our vice versa. We're lucky to break even gambling anywhere.

[cb at sea]

You have to win a considerable amount to be taxed.....I think hubby won about $800 once...on a $5 BJ table.

[packman1029]

won a little over $1300 on CCL a few years ago, but it was on multiple sittings during the cruise.

 

Never heard anything about it.

[kontraxed]

I've had some experience with Casino Losing but never heard of Casino Winning?

[lmares1968]

My experience as well[emoji19]

[orville99]

You mean you can win?

 

 

Sent from my iPad using Forums mobile app

[Ourusualbeach]

So why does RCI report any purchases in its shops on board over a certain $ amount to customs and immigration yet does not report casino winnings.

[Clarea]

So why does RCI report any purchases in its shops on board over a certain $ amount to customs and immigration yet does not report casino winnings.

Probably need a lawyer to chime in on that one.

[Merion_Mom]

IRS gets a cut of cruise ship winnings

By George Saenz • Bankrate.com

 

George Saenz

 

Dear Tax Talk,

I won gambling money on a cruise ship in international waters; they gave me a form for Florida. I live in Texas. How do I report the winnings? Can I also use Louisiana losses toward this?

-- Deborah

 

Dear Deborah,

Not only were you lucky on the high seas, you're also lucky there are no state income taxes involved. Neither Florida nor Texas impose individual income taxes, so your only partner in the winnings is Uncle Sam.

 

The cruise ship most likely handed you a Form W-2G for gambling winnings and of course they will provide the IRS a copy. The IRS will certainly want to see your winnings on your 2009 Form 1040.

 

Gambling winnings are reported on Form 1040 Line 21. The IRS has released the 2009 Form 1040. Depending on the type of wager, taxes may have been withheld. These taxes would be included with other withholding on Form 1040 Line 61.

 

Gambling losses are deductible as miscellaneous itemized deductions on Schedule A Line 28. The IRS has not released the 2009 Schedule A, so use the equivalent line when completing your returns for 2009.

 

Gambling losses are not reduced by 2 percent of adjusted gross income, or AGI, as are other miscellaneous deductions. Your gambling losses can come from any source as long as they were incurred in the same year. You can offset the cruise ship winnings with Louisiana casino, lottery ticket, pari-mutuel and similar gambling losses.

 

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Taxpayers should seek professional advice based on their particular circumstances.

 

Read more Tax Talk columns. To ask a question on Tax Talk, go to the "Ask the Experts" page, and select "Taxes" as the topic.

 

 

 

Read more: http://www.bankrate.com/finance/taxes/irs-gets-a-cut-of-cruise-ship-winnings.aspx#ixzz3IdZgieEy

Follow us: @Bankrate on Twitter | Bankrate on Facebook

 

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

Cruise Casino Jackpots and Taxes

Since cruise ships with casinos are all registered outside the United States — with their casinos only open when the ships are in international (or at least non-U.S.) waters — a frequent question is whether a slot jackpot or other big win on the high seas is subject to U.S. income taxes.

 

The short answer, for any U.S. citizen or permanent resident, is yes. U.S. tax law provides that all American citizens and permanent residents are subject to income tax on money earned (or in this case won) anywhere on the face of the earth, and you are required to report it on the “Other Income” line when you fill out the old 1040.

 

But the next question often heard is whether cruise ship casinos (like all U.S. land-based casinos) file a W-2G tax form with the U.S. Internal Revenue Service in the event of a jackpot, and what level of payout triggers this.

 

The answer varies. Just like land-based casinos, the major cruise lines — as we understand it — are supposed to file a W-2G for all slot jackpots of $1,200 or more, and for any table game jackpots and payouts where the odds are 300 to 1 or higher (for instance, a Caribbean Stud progressive jackpot).

 

 

 

But in practice, some of the biggest cruise lines do — and some don’t.

 

On ships that do issue W-2G’s, the casino typically would get the needed information for the form before handing over the money, and give the lucky winner two copies while keeping one to transmit to the IRS. (By the way, if you win a shipboard bingo jackpot of more than $1,200, even though bingo is not part of the casino, you also may get a W-2G.)

 

As a general rule, cruise ship casinos do not withhold U.S. taxes on slot jackpots if the winner provides a valid social security number. (If you decline to provide your social security number, the casinos may withhold at a rate of 28 percent.)

 

However, table game payouts subject to tax reporting or any gambling winnings in excess of $5,000 (and at least 300 times the amount wagered) are subject to withholding at a rate of 25 percent (or 28 percent if you decline to provide a valid social security number).

 

But the good news is that if you are playing high-stakes blackjack, craps, roulette, baccarat or pai-gow on your cruise, W-2Gs probably will not be forthcoming on any of the major cruise lines — even if you have a great night at the table and win a pile of money.

 

Keep in mind, however, that cruise ship casinos are subject to U.S. money laundering rules, and the cruise line must file Currency Transaction Reports on aggregate cash transactions by any individual of $10,000 or more in any single day.

 

Also, if you return to the United States with $10,000 or more in cash in your possession, you need to declare this to U.S. Customs — even if this has nothing to do with casino winnings, but is your retirement savings that you brought with you when you set sail. (Again, this is related to money laundering and the financing of terrorism.)

 

Finally, keep in mind that if you are lucky enough to hit a slot jackpot on your cruise, and somehow are not given a W-2G, you have no way of knowing whether the cruise line subsequently filed one for your winnings with the IRS. And, of course, when tax time comes, you still are responsible for declaring the jackpot as income.

[bighairtexan]

Most I won on a cruise ship in 1 jackpot was just under 3K and I wasn't given the W3G.

 

Most I won on a land based slot was $16,667.77 (but who's counting?). In a Vegas casino the limit (at least as of a couple years ago) over which you get taxed was $1200 FROM A SLOT MACHINE, single win. Oddly enough I saw some HUGE winnings on the craps table and no one was there passing out tax forms. It's easier to track things on the machines (how much in vs how much out), but they DO keep track of both tables and machines. When I had the large single win I was able to contact the casino and was provided w/ a "gambling history" for the year. I was mostly a table gambler so had losses to partially offset the win.

 

Your losses are deductible UP TO the point of your winnings. If you won 10K and you lost 20K, you can only deduct up to the winnings (10K) and it winds up being a wash.

[pspercy]

$400, slots. European cruise, round trip Rome, cash, no paperwork:)

[bxqlsigelsq]

it was on multiple sittings during the cruise.

[ocav]

So why does RCI report any purchases in its shops on board over a certain $ amount to customs and immigration yet does not report casino winnings.

 

 

They report purchases so customs are aware of what is leaving the ship in case there is any import duty

[leisuretraveler223]

Took a blackjack table for a little over $11,000 on Celebrity a few years ago. Unfortunately, in the long run, they are probably still ahead!:o

 

W-2G are given at all US casinos for a hand pay from a machine over $1,200. They are not processed from table games at all.

 

U.S. players do not have any taxes withheld on winnings by the casino. But foreign visitors may, although they do eventually get it back.

 

Simply put, if you get a W-2G from a casino, the IRS is going to be informed, so you better claim it on your taxes. If you have losses to counteract the winnings, you need to be able to document them. This is where a win-loss statement from said casino comes in handy.

[EllaDuChien]

Just interested in knowing the most you've ever won on board? How much you were taxed? What were you playing? [emoji383] [emoji456] [emoji568]

 

We asked this question on board the FOS in August and were told that Royal had not signed the disclosure document with the IRS that requires them to report winnings and had no plans to do so in the future.

 

Not that I have ever needed one...but others in my party have!

[starfish216]

A couple of years ago DH won $4500 on a Progressive Video Poker machine on EOS within an hour of the casino opening. No taxes were taken out. After gambling all week the net winnings for this cruise was $3600.

 

He had to go back to his cabin and get photo idea, a form was filled out requesting his SS# and we were given a copy of the form.

 

We did claim the winnings on our tax return but since we cruised a couple more times the same year and lost the net effect was zero gains. We just request a win/lose statement from each of the cruises we took.

 

It was funny….he won in May and for awhile we were collecting lottery tickets to help offset the winnings….in the end we didn't need them since we sailed on other cruises in September and December. Also, since we file jointly my losses were able to offset his winnings.

 

The correct thing to do is report all winnings to the IRS.

Edited November 10, 2014 by starfish216

[Rocketlady]

Won $600. one night and $300 the next night on Carnival. No taxes. If you play at casinos in Ohio there is no such thing as counting your loses when you win $1,200. Governor stopped that as soon as he was in office.

[leisuretraveler223]

Won $600. one night and $300 the next night on Carnival. No taxes. If you play at casinos in Ohio there is no such thing as counting your loses when you win $1,200. Governor stopped that as soon as he was in office.

 

That's only with regards to state taxes. The Governor of Ohio can enact whatever ignorant backassward legislation he wants with regard to the state, but it has no effect on my federal return.

[klfrodo]

According to US Tax Code it doesn't matter if you win $1 on a scratch ticket or $1M on a lotto ticket,,,, YOU are required (by law) to claim this as "Earned Income" on your annual tax return form (1040A).

This includes winning $0.50 on a slot machine on a cruise ship in the middle of the Caribbean. (you can offset these winning by writing off any and all gambling losses up to the amount of posted winnings)

 

For example. Let's say you had a reported winning (W2G or 1099G) for $2000. Now, you gather your Win/Loss Statements from all places where you played for that year and you can show $2500 in losses. You will report that loss also. Now, there will be no taxable winnings since you were able to offset these winnings with documented losses.

 

Now, what each of us do in reality is a different story.

 

As a side note regarding gambling.

A SLOT Machine jackpot of over $1199 will be reported as winnings to the IRS and to the winner by providing a W2G or a 1099G.

A non jackpot payout, but where the casino operator has to come pay out in cash can also be reported.

The above is true and accurate from personal experience from both a land based Vegas casino and from my experience on a couple of different incidences aboard a couple of different Carnival cruise ships.