Casino Winnings & Tax Time

[stephuney]

Hello ... wondered if someone could answer me a question?!

 

This summer I won two decent size jackpots on my cruise ... $2,250 - twice ... so a total of $4,500.

 

I thought I remembered the casino host telling me that I would receive something at the end of the year for my taxes.

 

?? I havent rec'd anything yet ... does anyone know if I am supposed to receive something ??

 

Thanks

Steph

[TheVegasMan]

If you filled out a W-2G then you will need to report your winnings. Any verifiable gambling losses can be used to off-set those winnings. If you're a member of any land based casino's players clubs, get copies of your won-loss statements and turn all of that into your tax preparer.

[jessemon]

Hello ... wondered if someone could answer me a question?!

 

This summer I won two decent size jackpots on my cruise ... $2,250 - twice ... so a total of $4,500.

 

I thought I remembered the casino host telling me that I would receive something at the end of the year for my taxes.

 

?? I havent rec'd anything yet ... does anyone know if I am supposed to receive something ??

 

Thanks

Steph

All tax statements have to be mailed by the 31st on January....Keep checking the mailbox....:(

[Tom-n-Cheryl]

Did you fill out any forms onboard which included your SS# ? If not, then perhaps you are off the hook!! Of course, it's still your duty as a citizen to GIVE Uncle Sam his fair share, as he also put $$ at risk when you gambled... :rolleyes:

 

Tom

[NCTribeFan]

If you filled out a W-2G then you will need to report your winnings. Any verifiable gambling losses can be used to off-set those winnings. If you're a member of any land based casino's players clubs, get copies of your won-loss statements and turn all of that into your tax preparer.

 

 

Actually, your gambling losses do not offset your (reportable) winnings directly. Winnings are ordinary income. Losses are an itemized deduction, not subject to 2% AGI floor. And you can only deduct the losses to the extent of your winnings.

 

I have no idea what the rules are for gambling winnings from casinos on ships in international waters that are non-US flagged vessels.

 

All W-2s (including W-2G) were required to be mailed on Monday. If you're going to receive one, you should receive it shortly.

 

You could always call Carnival and ask them if one is in the mail so you can go ahead and file your return. You don't want to file, THEN receive the W-2G and have to amend.

 

People a cruise discussion board is NOT the place to ask tax questions. Ask a tax professional.

[cathyoo]

Actually, your gambling losses do not offset your (reportable) winnings directly. Winnings are ordinary income. Losses are an itemized deduction, not subject to 2% AGI floor. And you can only deduct the losses to the extent of your winnings.

 

I have no idea what the rules are for gambling winnings from casinos on ships in international waters that are non-US flagged vessels.

 

All W-2s (including W-2G) were required to be mailed on Monday. If you're going to receive one, you should receive it shortly.

 

You could always call Carnival and ask them if one is in the mail so you can go ahead and file your return. You don't want to file, THEN receive the W-2G and have to amend.

 

People a cruise discussion board is NOT the place to ask tax questions. Ask a tax professional.

 

If you are a US citizen you must report all your gambling winnings. Whether you receive the W2G or not you are to report the income. If it is reported to the IRS and you are audited for underreporting your income the fact that you did not get the W2-G will be of no consideration.

 

Unless your taxes are extremely complicated or you are looking for financial planning.. you really should either call the IRS or go to IRS.gov and research your question. For the basic tax return there is no need to shell out big bucks.

[Cruise, J.D.]

If you are a US citizen you must report all your gambling winnings. Whether you receive the W2G or not you are to report the income. If it is reported to the IRS and you are audited for underreporting your income the fact that you did not get the W2-G will be of no consideration.

 

That pretty much sums it up. If you are a U.S. citizen your federal income tax obligations follow you throughout the world.

[roc_m_99]

You should only pay the taxes if you are going to be elected into the President's Cabinet.

[tkportersat]

I thought there were different rules being that you are in "international waters". :confused:

 

I would definitely get with a tax consultant for something like this. Congrats on your winnings. :)

[jaja]

If you filled out a W-2G then you will need to report your winnings. Any verifiable gambling losses can be used to off-set those winnings. If you're a member of any land based casino's players clubs, get copies of your won-loss statements and turn all of that into your tax preparer.

 

just curious.. can you request a copy of "win -loss statement" from Carnival ??

[klfrodo]

I thought there were different rules being that you are in "international waters". :confused:

 

Nope, Uncle Sam considers this as "Earned Income", thus taxable.

[CruiserJul]

You should only pay the taxes if you are going to be elected into the President's Cabinet.

Lol :rolleyes:

[RatherBFishin]

I thought there were different rules being that you are in "international waters". :confused:

 

Nope. Cathy is right. Here is the info straight from the IRS:

 

http://www.irs.gov/taxtopics/tc419.html

 

There are more complicated rules for gambling winnings earned by nonresident aliens inside the US, but that's exactly the opposite of what we're talking about here.

 

There are also specific rules for handling Foreign Earned Income, but don't count in this case because Gambling Winnings are considered Unearned Income.

 

So the simple answer is basically, yes, you have to report it.

[Tom-n-Cheryl]

Let get real here... If they DID NOT GET your SS#, is there ANY WAY that the IRS will be "in the know"? Frankly, IMHO, if the IRS is not aware of it... neither am I (ignorance is sometimes bliss) :)

 

If I find a $100 bill on the sidewalk, and nobody is around that apparently lost it - IT IS MINE, and the IRS won't get a penny.

 

Tom

[RatherBFishin]

Nope, Uncle Sam considers this as "Earned Income", thus taxable.

 

Correct. Technically Income, but "Unearned".

[RatherBFishin]

Let get real here... If they DID NOT GET your SS#, is there ANY WAY that the IRS will be "in the know"? Frankly, IMHO, if the IRS is not aware of it... neither am I (ignorance is sometimes bliss) :)

 

Yes.

 

Carnival and Ocean Players Club are required to send their W2 data (all variants) to the IRS electronically. The file format is here:

 

http://www.irs.gov/pub/irs-pdf/p1220.pdf

 

There are instructions on what to do when you don't know the person's SSN. I can't say whether the Enforcement Division does with the data (that's not my department), but the data is sent.

[linsue1231]

Hello ... wondered if someone could answer me a question?!

 

This summer I won two decent size jackpots on my cruise ... $2,250 - twice ... so a total of $4,500.

 

I thought I remembered the casino host telling me that I would receive something at the end of the year for my taxes.

 

?? I havent rec'd anything yet ... does anyone know if I am supposed to receive something ??

 

Thanks

Steph

 

All tax statements, by law had to be mailed out by Feb 2nd. It is usually done by the end of January, but that fell on a weekend so the next business day would have been Feb 2nd. So I would wait a bit longer, and even though they are suppose to mail them out by a certain day, sometimes they do not....also the part that has to be mail to the IRS has a deadline date of Feb 28, so I would wait until after that to take any action....if you plan on taking any.....

 

Some of my clients dont even get theirs until March....

[Tom-n-Cheryl]

Yes.

 

Carnival and Ocean Players Club are required to send their W2 data (all variants) to the IRS electronically. The file format is here:

 

http://www.irs.gov/pub/irs-pdf/p1220.pdf

 

There are instructions on what to do when you don't know the person's SSN. I can't say whether the Enforcement Division does with the data (that's not my department), but the data is sent.

 

Interesting, though LONG WINDED, document! (I would not expect anything less from the IRS!) All the more reason to SCRAP the entire US TAX CODE and go to something simple like a flat or consumption tax... :rolleyes:

 

So.... if they did not get your SS# AND you don't receive the W2-G, then I would assume you are good to go. If either of those two events did occur, I would feel obligated (though ONLY due to the THREAT of penalty/prosecution) to REPORT it on my tax return! I do pay my FULL taxes, I don't have a choice... though I wish I did have a little (ANY?) more say in how it is WASTED and GIVEN away!!!

 

(BTW.. I am KEEPING the entire $100... :D)

 

Tom

[tedjazz]

You should only pay the taxes if you are going to be elected into the President's Cabinet.

 

Why they don't... ;)

[Wolfie48]

Hello ... wondered if someone could answer me a question?!

 

This summer I won two decent size jackpots on my cruise ... $2,250 - twice ... so a total of $4,500.

 

I thought I remembered the casino host telling me that I would receive something at the end of the year for my taxes.

 

?? I havent rec'd anything yet ... does anyone know if I am supposed to receive something ??

 

Thanks

Steph

 

Land based casino's don't have you fill out a W2G and report to the IRS on jackpots under $1,200.00 Is it the same with a cruise ship casino?

[mfk]

Won $1800 on ship last January. They asked for my SS# and my drivers license. Gave me a paper stating how much I won. Had to file it with our income taxes. Should have given you something if they asked for your SS# and drivers license.

[mfk]

Forgot to say it was on Carnival.

[boaterette]

I won 5800 on the pride this past December and they gave me the 1099g on the last night. It was in an envelope on the bed.

[sunnylasvegas]

We have day-trip casino boats here in Florida. I won big one time several yrs ago and was paid in cash---no one asked for my name, SS, or anthing. I was always told that if you win in international waters, you do not pay taxes. So, why do they report on a cruise ship?

[Tom-n-Cheryl]

We have day-trip casino boats here in Florida. I won big one time several yrs ago and was paid in cash---no one asked for my name, SS, or anthing. I was always told that if you win in international waters, you do not pay taxes. So, why do they report on a cruise ship?

 

No doubt some kind of "arrangement" between the cruise line and the government. I won a few grand in Nassau some time ago, and they couldn't have cared less. Granted, I then DONATED it on the ship during the ride back, but that's MY fault!!! Of course, table games are an entirely different creature compared to slots... there are not reporting regulations unless the odds are something like 1:300 (some types of 3 card poker games??)...

 

Tom