Tournament Cashes and the IRS - Beginning Poker Questions

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Tournament Cashes and the IRS

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06-05-2017 , 02:22 AM

freestreetcommando

journeyman

Join Date: Nov 2014 Posts: 220

I've played a lot of cash game poker but never tournaments. So I have two questions.

1. Is a tournament cash of $600 the threshold for getting the IRS paperwork?

2. And do you get a W-2G or a 1099?

Thanks for any answers.

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06-05-2017 , 02:34 PM

rainmaker1855

adept

Join Date: Sep 2015 Posts: 1,031

usually any and all tournament cashes are going to generate paperwork because you have to pay state and federal taxes (regardless of the size.) It is only when you are cashing out at the cage will the amount/threshold come into play (or if you are getting payout on a slot machine.) that's been my experience anyway.

as for the W-2G forms I dont know why you get those in some cases and not others; could also have to do with an amount but unsure.

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06-05-2017 , 03:18 PM

StarGrinder

centurion

Join Date: Jul 2010 Posts: 127

Since 2008, the IRS requires casinos to report tournament winnings of more than $5k with a W-2G form. If they don't report it, they're on the hook for the taxes owed.

For players, the IRS has always required that winnings be reported on their federal income tax returns, regardless of the amount and regardless of whether or not you received a W-2G form.

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06-06-2017 , 02:26 AM

Sil3ntness

old hand

Join Date: Nov 2014 Posts: 1,304

I saw a final table deal split 7 way for about $4999 was hilarious.

They'll do whatever it takes to avoid generating a W-2G form.

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06-06-2017 , 10:20 AM

StarGrinder

centurion

Join Date: Jul 2010 Posts: 127

Quote:

Originally Posted by Sil3ntness

I saw a final table deal split 7 way for about $4999 was hilarious.

They'll do whatever it takes to avoid generating a W-2G form.

Makes sense considering they get a lot less than that if it hits the 5k mark. Damn smart

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