Quote:
Originally Posted by Villian1
This isn't poker but...
If you hit a slot jackpot for $2300ish, the casino offers to either give you the full $2300ish (after providing a valid ID, players card, and your original government issued Social Security Card, not just the SSN#, the actual card) and a W2-G.
Or give you $2300 minus a 28% withholding and a W-9.
Is there a reason to choose one option over the other?
The W2-G gets sent to the IRS and you get a copy. You are liable to report the winnings on your tax return and pay the income taxes on the amount reported.
A W-9 is kept by the casino for their records, not sent to the IRS. You are still liable to report and pay the income taxes on the amount (minus the amount withheld). But the W-9 provides your SSN# to the casino, so they are probably going to eventually send you a W2-G as required by IRS regulations.
The "option" isn't really much of an option. They are really just saying that if you don't have your SS card with you, they'll take your SS# down and send you the W2-G later. In the end, you will pay the same amount of tax liability.