Gambling Winnings On 1099 Misc

Joeman
I was at the local poker room last week, and they were running a high hand promotion that paid $1,300 to the winner. I asked the dealer if the winner would get a W2, but he said that any win over $600 got a 1099, not a W2. I didn't pursue it any further with him, and needless to say, I did not win the prize, but it got me wondering.
First, (and it may just be FL law) why is the threshold $600 and not $1,200? And more importantly, for income tax considerations, how would winnings reported on a 1099-MISC differ from those reported on a W2-G?
DRich

Jan 03, 2020  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 lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. Mar 23, 2019  Just putting 'gambling winnings reported on 1099-MISC' on Line 21 of the new Schedule 1 of the 1040 might be enough, but it might not. Getting a W-2G does not cause any confusion. The only way to offset gambling winnings with losses is to: 1. Have documentation of losses.

Thanks for this post from:
The limit of $600 is standard for a 1099. A 1099 is for miscellaneous income not gambling income. The high hand is probably considered a promotion because it is not directly correlated to a fixed bet amount.
A 1099 may be more difficult to write your losses off against if you are not a professional player.
Joeman
Thanks for the info, DRich!
So, if I am not a professional, and I will be taking the standard deduction when I file, it sounds like there would be the same tax liability for 1099's vs. W2's?
I have received neither this year, so this wouldn't affect my taxes, but it might influence which promotions I try to go after in the future.

Gambling Winnings Reporting

DRich

Thanks for the info, DRich!
So, if I am not a professional, and I will be taking the standard deduction when I file, it sounds like there would be the same tax liability for 1099's vs. W2's?
I have received neither this year, so this wouldn't affect my taxes, but it might influence which promotions I try to go after in the future.


Disclaimer: I am not an accountant.Gambling winnings reported on 1099 misc
My understanding is that if you are not itemizing deductions, they will be the same.
Living longer does not always infer +EV
beachbumbabs
Administrator

Gambling Winnings On 1099 Misc Tax

Thanks for this post from:

I was at the local poker room last week, and they were running a high hand promotion that paid $1,300 to the winner. I asked the dealer if the winner would get a W2, but he said that any win over $600 got a 1099, not a W2. I didn't pursue it any further with him, and needless to say, I did not win the prize, but it got me wondering.
First, (and it may just be FL law) why is the threshold $600 and not $1,200? And more importantly, for income tax considerations, how would winnings reported on a 1099-MISC differ from those reported on a W2-G?


This is what the IRS instructs those who document via 1099-Misc:

Gambling Winnings Reported On 1099 Misc


Quote:


File Form 1099-MISC for each person to whom you have paid during the year:
at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
at least $600 in:
rents;
services performed by someone who is not your employee;
prizes and awards;
other income payments;
medical and health care payments;
crop insurance proceeds;
cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
payments to an attorney; or
any fishing boat proceeds,

If the House lost every hand, they wouldn't deal the game.
GWAE

Form 1099 Gambling

GamblingMy stupid local sent me a 1099 for a $200 high hand win last year.
Expect the worst and you will never be disappointed. I AM NOT PART OF GWAE RADIO SHOW
DRich

My stupid local sent me a 1099 for a $200 high hand win last year.


That sucks, but it is not wrong on their part. They must file one if it is over $600, but if it is under it is up to them.
Living longer does not always infer +EV
GWAE

That sucks, but it is not wrong on their part. They must file one if it is over $600, but if it is under it is up to them.


I know, I just wasnt expecting it and I already filed when I got it. I have not done an amendment and will see if the IRS sends me one if those nice letters like I got a few years ago when a similar thing happened.

Gambling Winnings On 1099 Misc Calculator

Expect the worst and you will never be disappointed. I AM NOT PART OF GWAE RADIO SHOW