Gambling Income On 1099 Misc

If taxpayers received payments described in Notice 2014-7, they may receive a Form 1099-MISC reporting these payments in box 3, Other income, or in box 6, Medical and health care payments. In most circum-stances, an amount reported in box 3 or box 6 of Form 1099-MISC is.

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
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
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.
My understanding is that if you are not itemizing deductions, they will be the same.
Living longer does not always infer +EV
beachbumbabs
Administrator
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?

Gambling Income On 1099 Misc Filing


This is what the IRS instructs those who document via 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
My 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

Examples Of 1099 Misc Income

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.

1099 Misc For Gambling Winnings


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.

1099 Misc Gambling

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