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In which case, he will owe NY state taxes on $275,000 and go bankrupt! To me, this makes little sense. I funded my account, played for less than an hour, and won 4k, owing more in taxes than my winnings -- who would ever want to play table games on an online casino! If people knew about this issue in advance they would stay far away.
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They were successful in putting some of the online casinos out of business but the strong did survive, but they moved out of the US market for the most part.
Generally, you'll receive an IRS Form W-2G if your gambling winnings are at least $600 and the payout is at least 300 times the amount of your wager. The thresholds are $1,200 for bingo or slot ...
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What is a W-2G? Gambling Winnings and ... - File Taxes Online Form W-2G reports gambling earnings and tax withholdings. Generally, you will receive a Form W-2G if you receive any of the following: * $600 or more in gambling winnings and the payout is at least 300 times the amount of the wager (except winnings from bingo, keno, and slot machines);* $1,200 or more in gambling winnings from bingo or slot machines; Tax Implications of Online Blackjack
Feb 6, 2010 ... When required by the IRS, casinos and race tracks get tax ID info from ... $1,200 or more in gambling winnings from bingo or slot machines; ... Taxes in the Back Federal Judge: Offshore Online Gambling Accounts Are Reportable Foreign .... at least $1,200 or more and for poker tournament winnings of more than $5,000. Establishing Basis for Gambling Losses - The Tax Adviser Exhibit 2 is a sample report issued by casinos to slot machine players who register ... When the hand-paid jackpot of $1,200 is subtracted, the loss is reduced to ...