Question. If my taxable slot winnings are $120,000 but my win/loss statement says I have a net loss of $38,000, do I still have to pay taxes on those winnings?
So if I'm understanding it correctly, if I go once to the casino in a calendar year with $10,000 and lose $5,000 without winning a jackpot - then this cannot be deducted from taxes. However, if I take $10,000 and in total lose $5,000 but win two jackpots for $2,000 each and the casino gives me a W-2G form, I can deduct the amount I'm taxed on the W-2G forms by $4,000 since I technically lost $1,000. Essentially I won't have to pay taxes on the W-2G form winnings, but am still out $1,000?
You’re only paying tax on the “NET PROFIT”! NET PROFIT = (TOTAL WINNINGS FOR THE YEAR) MINUS: (TOTAL LOSSES FOR THE YEAR). Imagine all you do all year is play the slot machine. You lose, lose, win, lose, lose, win…. You have $14K in winnings and $15K in losses. This is a Negative Net Profit. You will owe nothing extra in taxes. I know this is an over simplification, but it is fourth grade math. Not rocket science.
Guess what! If you take $5000 out to your backyard and burn it. You can’t deduct that either. This is the same as going to the casino and losing $5000. Stop playing the slots! You’re never going to win in the long run.
It's also important to mention that IRMAA is a factor for anyone over 63. Gambling wins reported on a W2G over $1,200 count towards the income calculation and will not be offset by losses. This extra income can push you into a higher bracket which will result in a higher Medicare cost.
Of course winnings are considered income and you should have to pay higher Medicare. Imagine your grumpy uncle wins $1M in the state lottery and then bitches about paying higher Medicare. Go pound sand old man! Oh, but please don't forget about me in your will.
This is a ridiculous comment. Imagine your grumpy uncle wins one million in the state lottery and then complains about having to pay higher Medicare costs.
what if they already taxed you before you get the money, but at the end of the year you have lost more then you have won. Do you get what you already paid in taxes
In short, if you don’t itemize your taxes and depending on the amount of W2-G you will owe taxes on your W2-G winnings both to Federal and State. Also, in states CT, IL, KS, IN, LA, MA, MI, MS, NH, NY, OH, WV, and WI, they tax you on 100% of your W2-G (up to 10%) without deduction for your losses which is very crooked since states know that no one really wins overall. If you won $100K in W2-G but lost $150K, you would still be liable for up to $10K state tax with no deduction for losses.
1. You couldn’t be more wrong! 2. You only have to pay tax on your net profit (WINS MINUS LOSSES). Even at the state level. 3. State taxes are deductible on your federal return. 4. If you have a problem paying your fair share to the state you reside in, move to a state with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming). 5. Know what you’re talking about before you post ridiculous comments on the internet.
you can deduct losses on the Federal tax return but the states that I listed don’t allow you to deduct losses on the state return. This is from personal experience in filing state tax return in 2023.
If you don’t normally itemize your taxes, going to the casino and winning a W2-G will be taxed by both Federal and State. The gambling odds are already horrible and you can deduce those horrible odds with implications of Federal and State taxation. Imagine a gambling addict who has won a $500K jackpot and during the course of the year lost it all back and also lost their properties with their CC maxed out and in some state you still have to pay $50K tax (10%) without deduction for losses. Some states are so crooked and take advantage of degen gamblers.
What’s not mentioned in the video is that state taxes are also deductible on your federal return. If you’re spending more than $14,600 a year on gambling, and you’re not itemizing your return, then you’re just being dumb with your money and maybe you do need a financial planner. Always keep records of your gambling losses! Good news is if you belong to a players club, and always use your players card either at the slots or the sportsbook, then you can request a statement from the casino at the end of the year. This is the same amount the casino is reporting to the IRS.
So if your standard deduction is more than what I would have on itemized deductions with the slot winnings then even if I lost more than I won, I am subject to pay taxes on my winnings and cannot deduct the losses. I won 1,581.00 in a casino in Alabama and I live in Georgia. I realize I have to file Alabama State non resident taxes. I can claim those taxes paid in Alabama on my Georgia State taxes and only in essence pay one state tax. Can I take gambling losses from the lottery in Georgia against my slot winnings in Alabama?
Im so confused so lets say i win 10k on a slot machine one day. But lose the whole 10k after that and have a net loss of -45k am i still liable to pay tax on the 10k winnings?
The standard deduction is NOT a bad thing. This is the IRS’s way of saying, we know you have deductions. Instead of going through the trouble of itemizing, we’re going to give you $14,600 (for 2024) in deductions. If you have more than that, then prove it (itemize).
@@TheVaxzu No. You’re only liable for tax on your Net Profit. NET PROFIT = (TOTAL WINNINGS FOR THE YEAR) MINUS (TOTAL LOSSES FOR THE YEAR). If you're not keeping records of your winnings and losses, then maybe you deserve to pay more in tax.
@@emac9499 I have an app that totals up and keeps track for me jack a$$. Thanks anyways. All I wanted was a genuine answer not any of the extra bs that came with it.
Okay, I did the math. Even though we are missing a lot of information. Net profit for the year is $1,117,872. This puts you in the highest tax bracket (37%). You will owe $413,612 in federal tax. The standard withholding amount is 24% ($321,779) from gambling winnings. This is how much the casino probably withheld from your payout. You're not getting a refund. You still owe the federal government $91,834. Hey everybody, I took home over $700K (after taxes) from the casino, but I'm still bitching because I had to pay taxes.
@@SnowCrust Depends if you're talking about a poker table or blackjack table. I don't play poker, but when I play blackjack, I'm only playing against the house. I'm not playing other players. What I meant in the original comment, was that we don't need your negative energy at the table.
People in the comments act like they shouldn’t have to pay tax on their winnings. Of course you have to pay tax on your winnings. This is ordinary income (says the IRS). However, if (in a calendar year) you’re losing more than you win, and you still pay tax, then you’re doing it wrong. Always keep records! And If you’re dumber than a fifth grader, get an accountant.
Hey Man I wagered like 3 million this year I won 151 grand once or twice this year they took the tax out right away i need help cause I thought I won 250k and they said no it was 151 so I think they took out 100k instead of 65 k
Unless you are winning millions don't listen to this and do your own taxes so you can right off the loses. If you hit the lottery for millions ya let them take a chunk. You not going to write off 200 dollars in lottery tickets unless your like my father and save every lost ticket like he did at the horse races lol
Very bad explanaition. You have toshut down the speed of speech and explain exact ppeople interest. Nobody need long video. The explanationmyst be for not educated people. Sorry. Not good
I completely agree, even though your spelling and grammar is terrible. He's overcomplicating a very simple concept. It's fourth grade math, not rocket science. Hey @realitymaker5321, Is everything at home okay?
And lose a lot. The majority of us lose more than we gain and uncle sam still comes after you for the little you gain. The question we should ask is worth it?
@@KarlaJammin You're doing it wrong! You should only be paying taxes on your net profit for the year. If your net profit is negative, then you shouldn't owe anything extra in tax.
Question. If my taxable slot winnings are $120,000 but my win/loss statement says I have a net loss of $38,000, do I still have to pay taxes on those winnings?
This shit should be illegal... I hate I ever got involved in gambling.... I'd rather be a shopaholic.
@@justagirl5040 You are soooo right....
No, but you'll need to itemize those losses. Not hard to do. You already have the statement from the casino.
So if I'm understanding it correctly, if I go once to the casino in a calendar year with $10,000 and lose $5,000 without winning a jackpot - then this cannot be deducted from taxes. However, if I take $10,000 and in total lose $5,000 but win two jackpots for $2,000 each and the casino gives me a W-2G form, I can deduct the amount I'm taxed on the W-2G forms by $4,000 since I technically lost $1,000. Essentially I won't have to pay taxes on the W-2G form winnings, but am still out $1,000?
I’m really interested too 😮
You’re only paying tax on the “NET PROFIT”!
NET PROFIT = (TOTAL WINNINGS FOR THE YEAR) MINUS: (TOTAL LOSSES FOR THE YEAR).
Imagine all you do all year is play the slot machine.
You lose, lose, win, lose, lose, win…. You have $14K in winnings and $15K in losses. This is a Negative Net Profit. You will owe nothing extra in taxes.
I know this is an over simplification, but it is fourth grade math. Not rocket science.
Guess what! If you take $5000 out to your backyard and burn it. You can’t deduct that either.
This is the same as going to the casino and losing $5000. Stop playing the slots! You’re never going to win in the long run.
It's also important to mention that IRMAA is a factor for anyone over 63. Gambling wins reported on a W2G over $1,200 count towards the income calculation and will not be offset by losses. This extra income can push you into a higher bracket which will result in a higher Medicare cost.
What if i am 23 , won big once on a 10k slot. But lossed it all gambling it. Will i still be expected to pay tax on the 10k?
@@TheVaxzu Sounds like you don't have enough losses to itemize. The taxes you pay on the $10K will be washed out by the standard deduction.
@@emac9499 sorry man I’m a bit slow, can you break it down in better terms for me to understand?
Of course winnings are considered income and you should have to pay higher Medicare.
Imagine your grumpy uncle wins $1M in the state lottery and then bitches about paying higher Medicare. Go pound sand old man!
Oh, but please don't forget about me in your will.
This is a ridiculous comment.
Imagine your grumpy uncle wins one million in the state lottery and then complains about having to pay higher Medicare costs.
Somehow I’m even more confused after watching this
same did u figure it out if you did please explain
It’s fourth grade math. Not rocket science!
He’s making it more confusing on purpose so you hire him. He’s only on TH-cam to find clients.
This video is for amateur gamblers only.
If you’re a professional gambler, there is an entirely different set of rules.
what if they already taxed you before you get the money, but at the end of the year you have lost more then you have won. Do you get what you already paid in taxes
Yes, it is called a tax refund. My six year old knows this.
In short, if you don’t itemize your taxes and depending on the amount of W2-G you will owe taxes on your W2-G winnings both to Federal and State.
Also, in states CT, IL, KS, IN, LA, MA, MI, MS, NH, NY, OH, WV, and WI, they tax you on 100% of your W2-G (up to 10%) without deduction for your losses which is very crooked since states know that no one really wins overall.
If you won $100K in W2-G but lost $150K, you would still be liable for up to $10K state tax with no deduction for losses.
1. You couldn’t be more wrong!
2. You only have to pay tax on your net profit (WINS MINUS LOSSES). Even at the state level.
3. State taxes are deductible on your federal return.
4. If you have a problem paying your fair share to the state you reside in, move to a state with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, or Wyoming).
5. Know what you’re talking about before you post ridiculous comments on the internet.
you can deduct losses on the Federal tax return but the states that I listed don’t allow you to deduct losses on the state return.
This is from personal experience in filing state tax return in 2023.
If you don’t normally itemize your taxes, going to the casino and winning a W2-G will be taxed by both Federal and State.
The gambling odds are already horrible and you can deduce those horrible odds with implications of Federal and State taxation.
Imagine a gambling addict who has won a $500K jackpot and during the course of the year lost it all back and also lost their properties with their CC maxed out and in some state you still have to pay $50K tax (10%) without deduction for losses. Some states are so crooked and take advantage of degen gamblers.
What’s not mentioned in the video is that state taxes are also deductible on your federal return.
If you’re spending more than $14,600 a year on gambling, and you’re not itemizing your return, then you’re just being dumb with your money and maybe you do need a financial planner.
Always keep records of your gambling losses! Good news is if you belong to a players club, and always use your players card either at the slots or the sportsbook, then you can request a statement from the casino at the end of the year. This is the same amount the casino is reporting to the IRS.
Question: Does a W2G count for earned income and can potentially put you over the yearly dollar amount to qualify to a IRA contribution?
Yes, it is ordinary income. That's why it is on a W-2.
Do irs could claim your file 1040 or helps to make it
?
Are you having a stroke?
So if your standard deduction is more than what I would have on itemized deductions with the slot winnings then even if I lost more than I won, I am subject to pay taxes on my winnings and cannot deduct the losses. I won 1,581.00 in a casino in Alabama and I live in Georgia. I realize I have to file Alabama State non resident taxes. I can claim those taxes paid in Alabama on my Georgia State taxes and only in essence pay one state tax. Can I take gambling losses from the lottery in Georgia against my slot winnings in Alabama?
Im so confused so lets say i win 10k on a slot machine one day. But lose the whole 10k after that and have a net loss of -45k am i still liable to pay tax on the 10k winnings?
The standard deduction is NOT a bad thing.
This is the IRS’s way of saying, we know you have deductions. Instead of going through the trouble of itemizing, we’re going to give you $14,600 (for 2024) in deductions. If you have more than that, then prove it (itemize).
@@TheVaxzu You only pay taxes on Net Profit. It's like you didn't even watch the video.
@@TheVaxzu No. You’re only liable for tax on your Net Profit.
NET PROFIT = (TOTAL WINNINGS FOR THE YEAR) MINUS (TOTAL LOSSES FOR THE YEAR).
If you're not keeping records of your winnings and losses, then maybe you deserve to pay more in tax.
@@emac9499 I have an app that totals up and keeps track for me jack a$$. Thanks anyways. All I wanted was a genuine answer not any of the extra bs that came with it.
Say I won 17000 they took 6000. My losses are 14 k counting that 17000 that I won. What do I do
You need to itemize your losses. I hope you kept good records. If not, ask the casino or sportsbook for an annual statement.
is everyone able to itemize ? It sounds like only certain people can, who can and who can't itemize the losses.
Anyone can itemize, but it only makes sense if you have more than $14,600 (2024) in deductions, which most people don't.
So tell me something... I won $1,340,745.07 to be exact, and I loss $222,873.57. How much will I get back?
In short, you will get back taxes paid on $222,873.57 from Federal but depending on your state you might get back nothing from State.
Okay, I did the math. Even though we are missing a lot of information.
Net profit for the year is $1,117,872.
This puts you in the highest tax bracket (37%).
You will owe $413,612 in federal tax.
The standard withholding amount is 24% ($321,779) from gambling winnings. This is how much the casino probably withheld from your payout.
You're not getting a refund. You still owe the federal government $91,834.
Hey everybody, I took home over $700K (after taxes) from the casino, but I'm still bitching because I had to pay taxes.
@@KWFILMS444 I stand corrected, it would depend on what tax bracket you are currently in.
@@mikepark1219 He has over one million in ordinary income. He's in the highest tax bracket.
@@emac9499 What if i win 500k and lost 600k. How does that work?
Its hard enough to beat the house u gotta lower your chances of winning by paying taxes too. Im done gambling
Good for you! We don't need losers sitting at the table bringing the rest of us down.
@@emac9499u tryna sound smart but in fact u do need a loser to win in a table so not everybody can be a winner 😆
@@SnowCrust Depends if you're talking about a poker table or blackjack table. I don't play poker, but when I play blackjack, I'm only playing against the house. I'm not playing other players. What I meant in the original comment, was that we don't need your negative energy at the table.
People in the comments act like they shouldn’t have to pay tax on their winnings.
Of course you have to pay tax on your winnings. This is ordinary income (says the IRS).
However, if (in a calendar year) you’re losing more than you win, and you still pay tax, then you’re doing it wrong.
Always keep records! And If you’re dumber than a fifth grader, get an accountant.
Hey Man I wagered like 3 million this year I won 151 grand once or twice this year they took the tax out right away i need help cause I thought I won 250k and they said no it was 151 so I think they took out 100k instead of 65 k
I was informed to never let the casino take out taxes because if you lose more than you gain it will balance out
@@KarlaJammin That's true unless you're terrible with money and can't pay your tax bill at the end of the year.
You're going to need an accountant. I hope you kept good records. If not, you should be able to request a statement from the casino or sportsbook.
Ooof we 3 minutes in. And I dnt think we needed any of this yet
He's needlessly making it more complicated on purpose.
Unless you are winning millions don't listen to this and do your own taxes so you can right off the loses. If you hit the lottery for millions ya let them take a chunk. You not going to write off 200 dollars in lottery tickets unless your like my father and save every lost ticket like he did at the horse races lol
Do you mean "write off the losses"? I don't think you should be doing your own taxes, or you're going to end up in jail.
I hate tax talk.
Very bad explanaition. You have toshut down the speed of speech and explain exact ppeople interest. Nobody need long video. The explanationmyst be for not educated people. Sorry. Not good
I completely agree, even though your spelling and grammar is terrible. He's overcomplicating a very simple concept. It's fourth grade math, not rocket science.
Hey @realitymaker5321, Is everything at home okay?
Luckily All I do is lose 😢
And lose a lot. The majority of us lose more than we gain and uncle sam still comes after you for the little you gain. The question we should ask is worth it?
@@KarlaJammin You're doing it wrong! You should only be paying taxes on your net profit for the year. If your net profit is negative, then you shouldn't owe anything extra in tax.