# Casino/poker Winnings and Tax **URL:** \ **Category:** Factual Questions\ **Created:** [August 10, 2005, 8:03am UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416 "2005-08-10T08:03:52Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![SoulSearching](https://avatars.discourse-cdn.com/v4/letter/s/848f3c/32.png) [@SoulSearching](https://boards.straightdope.com/u/SoulSearching)\ **Post date:** [August 10, 2005, 8:03am UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/1 "2005-08-10T08:03:52Z")
I recently had a debate with someone regarding the procedures casino take if someone wins a substantial about of cash. I understand that casinos will report to the IRS if a patron were to say hit a jackpot at the slots and win $30,000. This may or may not be true, but my question lies, what about poker tournament winnings? If I play a tournament and win $5,000 am I reported? How about $10,000 or more? Do I get it all in cash immediately? ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [August 10, 2005, 1:34pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/2 "2005-08-10T13:34:09Z")
Generally, if you win more than a certain amount ($600?) in one big chunk it will be reported to the IRS and you will have taxes removed. You’ll also get a 1099G so you may get some of the taxes back at the end of the year if you’re in a lower tax bracket than they’ve assumed for the purposes of calculation. ---
**Author:** ![Susie\_Derkins](https://avatars.discourse-cdn.com/v4/letter/s/e47774/32.png) [@Susie\_Derkins](https://boards.straightdope.com/u/Susie_Derkins)\ **Post date:** [August 10, 2005, 1:35pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/3 "2005-08-10T13:35:41Z")
Just anecdotal, but I’ve hit the jackpot on slot machines twice: once for $1000 and another time for $2500. While they simply gave me the $1000, I had to fill out tax forms on the $2500. I did get to decide between having the taxes taken out before they gave me the money or paying them when I filed at tax time. I went with the first option and ended up with $1675 in cash. ---
**Author:** ![Gangster\_Octopus](https://avatars.discourse-cdn.com/v4/letter/g/a8b319/32.png) [@Gangster\_Octopus](https://boards.straightdope.com/u/Gangster_Octopus)\ **Post date:** [August 10, 2005, 3:14pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/4 "2005-08-10T15:14:06Z")
Can professional poker players expense their tournament entry fees (not the buy-ins) on their taxes? ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [August 10, 2005, 4:17pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/5 "2005-08-10T16:17:24Z")
> [@Gangster Octopus](#): > > Can professional poker players expense their tournament entry fees (not the buy-ins) on their taxes? You can expense any gambling losses, including buy-ins, on your taxes. The losses cannont exceed the amount of your winnings though. The pros will even expense the costs of their travel to the tournaments. If you’re going to do this, it’s best that you keep records of all of your gambling activities. ---
**Author:** ![chemistrydork](https://avatars.discourse-cdn.com/v4/letter/c/7ba0ec/32.png) [@chemistrydork](https://boards.straightdope.com/u/chemistrydork)\ **Post date:** [August 10, 2005, 5:46pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/6 "2005-08-10T17:46:08Z")
I believe the cutoff is $1,200 – if you walk around enough casinos in Las Vegas, you will inevitably find several slot machines whose maximum payout is $1,199. > **[Topic No. 419 Gambling Income and Losses | Internal Revenue Service](https://www.irs.gov/taxtopics/tc419)** > > The following rules apply to casual gamblers who aren't in the trade or business of gambling. Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't limited to winnings from... Poker and table game earnings are probably self-reported, as tips are. The casino has little interest in knowing who you are, so unless you are a suspected cheat or a very profitable card counter, they couldn’t care less about making sure you don’t get in trouble. Gambling losses can be used to offset gambling winnings, as stated above, but you cannot get an overall deduction for losing money gambling. ---
**Author:** ![SoulSearching](https://avatars.discourse-cdn.com/v4/letter/s/848f3c/32.png) [@SoulSearching](https://boards.straightdope.com/u/SoulSearching)\ **Post date:** [August 10, 2005, 5:59pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/7 "2005-08-10T17:59:32Z")
So are you saying that tournament poker winnings are paid out right away without any tax issues initiated by the casino? ---
**Author:** ![Terminus\_Est](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/terminus_est/32/3087_2.png) [@Terminus\_Est](https://boards.straightdope.com/u/Terminus_Est)\ **Post date:** [August 10, 2005, 6:02pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/8 "2005-08-10T18:02:25Z")
When I signed up for a WPT satellite, they specifically said that any winnings over a certain amount would automatically have withholding tax applied. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [August 10, 2005, 6:31pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/9 "2005-08-10T18:31:21Z")
> [@Terminus Est](#): > > When I signed up for a WPT satellite, they specifically said that any winnings over a certain amount would automatically have withholding tax applied. That’s because you’re getting your winnings in one lump sum. They know exactly how much you’ve paid to enter so they know what the net is. If you’re playing a ring game, they have no idea how many chips you brought to the table in the first place or how many times you may have asked for more chips so there is no way to calculate the tax. They will take taxes out of a jackpot hand if you get one of those. ---
**Author:** ![Terminus\_Est](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/terminus_est/32/3087_2.png) [@Terminus\_Est](https://boards.straightdope.com/u/Terminus_Est)\ **Post date:** [August 10, 2005, 6:38pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/10 "2005-08-10T18:38:05Z")
> [@hajario](#): > > That’s because you’re getting your winnings in one lump sum. They know exactly how much you’ve paid to enter so they know what the net is. Right. I was replying specifically to **SoulSearching** ’s question: > [@SoulSearching](#): > > So are you saying that tournament poker winnings are paid out right away without any tax issues initiated by the casino? Casinos (at least the one I was at) do indeed take out withholding tax. ---
**Author:** ![SoulSearching](https://avatars.discourse-cdn.com/v4/letter/s/848f3c/32.png) [@SoulSearching](https://boards.straightdope.com/u/SoulSearching)\ **Post date:** [August 11, 2005, 12:04am UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/11 "2005-08-11T00:04:30Z")
Forgive me for sounding ignorant, but does withholding tax merely mean you get an after-tax payoff in cash without ANY paperwork (i.e. I don’t need to give them my SS# etc…). The reason I ask is very specific to my case that I do not want poker winnings on any kind to appear on paper in any way. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [August 11, 2005, 1:20am UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/12 "2005-08-11T01:20:10Z")
> [@SoulSearching](#): > > Forgive me for sounding ignorant, but does withholding tax merely mean you get an after-tax payoff in cash without ANY paperwork You will have tax taken out and you will be given a 1099-G form. This is only for gambling winnings but no one will know if it is poker, slots or something else. ---
**Author:** ![Monty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/monty/32/47_2.png) [@Monty](https://boards.straightdope.com/u/Monty)\ **Post date:** [August 11, 2005, 10:53am UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/13 "2005-08-11T10:53:27Z")
> [@SoulSearching](#): > > The reason I ask is very specific to my case that I do not want poker winnings on any kind to appear on paper in any way. This, then, is a specific request from you on how to illegally avoid paying your due taxes. ---
**Author:** ![SoulSearching](https://avatars.discourse-cdn.com/v4/letter/s/848f3c/32.png) [@SoulSearching](https://boards.straightdope.com/u/SoulSearching)\ **Post date:** [August 11, 2005, 6:49pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/14 "2005-08-11T18:49:36Z")
If the taxes are already taken out prior to receiving the payout then you are incorrect. I don’t care about paying taxes, just didn’t want any paper trail if it pertained to poker. Just wanted to know if I could pay the taxes without filing the paper work. ---
**Author:** ![Ferret\_Herder](https://avatars.discourse-cdn.com/v4/letter/f/e47774/32.png) [@Ferret\_Herder](https://boards.straightdope.com/u/Ferret_Herder)\ **Post date:** [August 11, 2005, 7:15pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/15 "2005-08-11T19:15:49Z")
Having paid taxes on earnings does not mean you don’t have to claim them on tax forms as well. After all, I pay my taxes out of my paycheck each month, but I still have to claim my earnings on the 1040s at the end of the year, and provide forms from my employer confirming those numbers. ---
**Author:** ![scm1001](https://avatars.discourse-cdn.com/v4/letter/s/c4cdca/32.png) [@scm1001](https://boards.straightdope.com/u/scm1001)\ **Post date:** [August 12, 2005, 11:58am UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/16 "2005-08-12T11:58:14Z")
what if I was (am) a foreign entrant - would they still deduct tax or could I say I will pay back in the UK as I am not resident in the US? ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [August 12, 2005, 1:54pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/17 "2005-08-12T13:54:49Z")
> [@scm1001](#): > > what if I was (am) a foreign entrant - would they still deduct tax or could I say I will pay back in the UK as I am not resident in the US? The money was earned in the US, you pay taxes in the US. ---
**Author:** ![Capa84](https://avatars.discourse-cdn.com/v4/letter/c/8edcca/32.png) [@Capa84](https://boards.straightdope.com/u/Capa84)\ **Post date:** [August 12, 2005, 6:50pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/18 "2005-08-12T18:50:59Z")
I won one live tournament with a payout of $1620, when I was taken to the cage to receive the pot, I was given it in cash, and told that I didn’t need to worry about filing anything with the IRS… FWIW, this was in a legal, state liscensed poker room. ---
**Author:** ![SoulSearching](https://avatars.discourse-cdn.com/v4/letter/s/848f3c/32.png) [@SoulSearching](https://boards.straightdope.com/u/SoulSearching)\ **Post date:** [August 12, 2005, 7:14pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/19 "2005-08-12T19:14:00Z")
Thanks Capa, thats great news!!! Just what I wanted to hear…Vegas here I come… ---
**Author:** ![Zakalwe](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zakalwe/32/270_2.png) [@Zakalwe](https://boards.straightdope.com/u/Zakalwe)\ **Post date:** [August 12, 2005, 7:25pm UTC](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416/20 "2005-08-12T19:25:06Z")
> [@SoulSearching](#): > > Thanks Capa, thats great news!!! Just what I wanted to hear…Vegas here I come… Hey, no skin off my nose, but did you actually read the link above? You’re going to take the anecdotal word of some anonymous internet poster over the word of the IRS on a matter related to the IRS? Don’t be at all surprised when you: 1. Have to pay taxes. 2. Have that income show up as “Gambling Winnings” on a 1099G with your name on it (the paper trail you seem so desperate to avoid). [Next page](https://boards.straightdope.com/t/casino-poker-winnings-and-tax/316416.md?page=2)