IRS rules

[Dave]

I hate to sound ignorant, but what are the IRS rules for taxes/withdrawels, etc?  (Wishful thinking, I know.)   It has been quite a few years since In cashed a big ticket.  I tried to research on the Internet, but all I found was conflicting information.   Also, what if you live in WI but bet and cash in IL?

[Admin]

The value of the winning ticket needs to exceed 300/1 of the cost of said ticket.

EX: Betting a $2 straight trifecta ticket that wins and pays $700 is (and was) a "signer".

However, if you were to box 4 horses in the trifecta for $1 ($24 cost) the winning ticket would have to be 300 x $24 or $7,200 for it to be a "signer".

Hope this helps...and if any of this info is in error or needs further please members chime in! 

[Duke]

Anything that pays 300-1 or more is taxable.

[JL52]

I am no expert, but I disagree with Admin. If the trifecta pays more than 600.00 for a 2.00 wager, I think the terminal casing the ticket would flag it as a signer even if it were part of a multiple bet. Having said that, a winning $1.00 bet that hit a $400 trifecta would not be subject to taxation. Of course, them IRS rule is ludicrous, as it takes money out of circulation that would almost surely be bet into subsequent pools. Will await further guidance by knowledgeable posters.

[SAW]

I am no expert, but I disagree with Admin. If the trifecta pays more than 600.00 for a 2.00 wager, I think the terminal casing the ticket would flag it as a signer even if it were part of a multiple bet. Having said that, a winning $1.00 bet that hit a $400 trifecta would not be subject to taxation. Of course, them IRS rule is ludicrous, as it takes money out of circulation that would almost surely be bet into subsequent pools. Will await further guidance by knowledgeable posters.

I'm pretty sure the Adim is correct, I believe they changed that law about a year ago, it is now based on the total ticke price of the wager.

[PIGLAND]

admin is correct

[Rabbi Of Racing]

Admin is right as always 

[chief yogi]

admin is correct. it just makes the rules even more crazy.

[Powerful Patricks Ghost]

I am no expert, but I disagree with Admin. If the trifecta pays more than 600.00 for a 2.00 wager, I think the terminal casing the ticket would flag it as a signer even if it were part of a multiple bet. Having said that, a winning $1.00 bet that hit a $400 trifecta would not be subject to taxation. Of course, them IRS rule is ludicrous, as it takes money out of circulation that would almost surely be bet into subsequent pools. Will await further guidance by knowledgeable posters.

Law changed. Cost of ticket has to be 300/1 now. If you hit a tri that pays $1000 but you spent $12, you dont have to sign a W2-G.

[pickfourny]

You can deduct losses up to the amount of your gain also. If you have to sign for a $300 winner, you can deduct $300 in losses if you can show proof of those losses.

While technically this is correct in actuality most filers will get screwed.  This is because with the law changes from the last couple of years most taxpayers are only able to claim a standard deduction on their return, and not be able to itemize.  As a result the benefit of claiming losses to offset winnings will be lost, leaving you paying the tax on your above the line reported income

[HornbyDuke]

  p4ny

Like all the things USA irs related complicated but admin is right on primary point - total dollar bet now drives when you get a signer.

Technically all winnings are reportable income. However IF you itemize deductions you can offset winnings against losses if you maintain records.

If you don't itemize you can't offset. You still have to legally report winnings (not profit).

Also, the us tax rule isn't as simple as saying 300-1 is the winner bet amount that drives getting a 1099. If you hit a dime triple that pays $30 that doesn't require signing and you don't get a 1099.

But GENERALLY, except for a few odd exceptions,  300-1is the guideline.

A lot of people don't report on tax form gambling winnings unless a 1099 (signer) is generated. If it is and they itemize they also likely can offset.

[Powerful Patricks Ghost]

p4ny

Like all the things USA irs related complicated but admin is right on primary point - total dollar bet now drives when you get a signer.

Technically all winnings are reportable income. However IF you itemize deductions you can offset winnings against losses if you maintain records.

If you don't itemize you can't offset. You still have to legally report winnings (not profit).

Also, the us tax rule isn't as simple as saying 300-1 is the winner bet amount that drives getting a 1099. If you hit a dime triple that pays $30 that doesn't require signing and you don't get a 1099.

But GENERALLY, except for a few odd exceptions,  300-1is the guideline.

A lot of people don't report on tax form gambling winnings unless a 1099 (signer) is generated. If it is and they itemize they also likely can offset.

 It is but it's over $600. Assumed most people would know this but maybe I shouldn't have.