Slot Machine Payouts – Federal legislation introduced today by leaders of the Congressional Gaming Caucus would greatly increase the amount of money required to win a slot machine spin to trigger an IRS report.
A slot machine shuts down its operation after a lucky gambler hits the $15,000 jackpot. Attendants also respond to such wins to make sure the terminal is working properly and to properly complete IRS tax paperwork. (Image: Shutterstock)
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The creatively named SLOT Act — or “Shifting Limits on Threshold Act” — is bipartisan legislation from U.S. Reps. Dina Titus (D-Nevada) and Guy Reschenthaler (R-Pennsylvania). The two lawmakers cochair the Congressional Gaming Caucus.
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The SLOTS Act, if passed and signed into law by President Joe Biden, would raise the jackpot tax reporting threshold from $1,200 to $5,000. That’s an increase of over 300%.
Titus and Reschenthaler argue that the current IRS slot threshold, which has not been touched since 1977, is very antiquated and due for major adjustment. He says ongoing inflation necessitates further change.
Because of inflation, the number of jackpots that hit that limit, triggering machine shutdowns and more paperwork requirements for parents, has increased dramatically,” Titus said. “This creates an unnecessary burden on the gaming industry, an economic driver for Southern Nevada and other communities nationwide where slot machines exist.” Business support
US tax laws require a slot machine to be suspended any time a play wins $1,200 or more during a single spin. If that happens, the employee is responsible for completing the W-2G form. The IRS tax filing is for taxpayers to report their annual gambling winnings as income.
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The American Gaming Industry (AGA) has naturally given its support to the Slots Act. Raising the mandatory W-2G threshold would help ease “unnecessary administrative burdens on administrators,” the trade group says. The AGA concluded that the bill would modernize the IRS’s regulations on slot machine jackpots.
Based on the US Department of Labor’s Consumer Price Index, $1,200 in 1977 is equivalent to $5,567 today.
Reschenthaler, whose state is now one of the largest gaming markets in the United States, $1,200 slot jackpot IRS Activator s.
“Because the cap has not kept up with inflation, it has led to a sharp increase in reportable jackpots, triggering tax burdens and compliance burdens for winners. Raising the cap would eliminate this burdensome red tape, ensure the gaming industry can continue to support good-paying jobs and spur economic growth in Pennsylvania and across the country,” Reschenthaler said. Said.
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Less mandatory W-2G forms may result in fewer slot winnings being properly reported to the IRS.
Gamblers are required by law to report all of their gambling winnings as “other income” on a 1040 tax form. But recreational gamblers often fail to do so. The IRS W-2G form is one way to make sure the federal government gets its share of the big wins.
Congress has ordered the US Treasury Department to commission a study in late 2020 on how raising the slot tax farm limit could affect overall gaming taxes. It has been almost a year since the report arrived.
“I believe that appropriate taxes should be collected on winnings, raising the threshold will reduce paperwork and ensure that this is achieved more efficiently,” concluded Titus. are you ready Are you ready to win the 60-thousand dollar slot machine jackpot? are you sure Here’s what to expect if you win big.
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I won 90 taxable jackpots in nine months in a US state where slot machine jackpots are automatically taxable at $1,200. Three of those handouts exceeded $10,000. On average, 30 out of those 90 jackpots exceeded $10,000. This excludes the $40,000 cash option I got for winning the car at the end of those nine months.
My first big jackpot was $27,000. So far, this has been my biggest jackpot playing slot machines. I won it on Saturday, December 21, 2013 at 5:40pm at Horseshoe Cincinnati, because JACK Cincinnati Casino was bought and renamed and then sold again in 2019 to become Hard Rock Cincinnati.
I won this $27,000 hand pay on a red-blue-white seven’s slot machine in a high limit slots room. I made the max bet on this $10-denomination, 2-credit slot machine.
I was checking to see if I could cycle my bankroll on this slot machine and see if it was a winning slot machine. I decided I was wasting my money because the bankroll showed no evidence of cycling when it hit.
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I remember the moment vividly. It was a long morning. I started my session at 4am and already won a small hand. I remember seeing someone earning money with their hands before me but I couldn’t see how much.
The floor manager was with the slot attendant during his handout, so it must have been over $10,000. As the floor manager and slot attendant walked out after payment, they started walking away from me.
Just as they approached, my $27,000 jackpot hit. I looked down, saw the 2,700-credit hit, looked at the floor manager staring at me, and swore.
Embarrassed. I don’t usually swear. But, at that very moment, I felt the need to do so. I swore looking the floor manager in the eye. He kept walking, frowning now.
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I called him to explain. “Sorry! Sorry about that! I didn’t mean to swear, but I won the jackpot. A really big jackpot!”
He returned. Well about 30 seconds after the slot machine hit, I basically went into shock. Since I started gambling again after almost 10 years, my biggest jackpot was $5,000. Last month I won it three times, because I started gambling again and every time I had a hard time.
But now, I have won five times more. It was not easy. I remember telling the floor manager how unreal and dreamlike it felt. I asked the slot attendant to pinch me. She did. It didn’t help.
And, after the hand payment, I had trouble deciding what to do next. Should I just get on with my day? Should I stick to the plan I had in mind? Or is my plan to gamble all day ruined? Hint: You’re done, so go home!
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Can you imagine how I was feeling? I know some of you can guess this. I know because some of you have won even bigger jackpots while playing slots.
Are you ready to win a big jackpot the next time you play a slot machine? To be prepared, you’ll need a few essentials like your government-issued I.D. But there are other ways you’ll probably want to be prepared, which I’ll go into shortly.
You will need a government issued I.D. To receive a taxable jackpot at a casino. That is essential. If you don’t have it with you, the best casinos will let you go to your car. But, I don’t think you should count on going home to get to the casino.
If you’re like me, you may find that you’re not after winning the big jackpot. To be prepared, think it through in advance. Make a plan yourself. Then, if that happens, all you have to do is remember the plan.
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It doesn’t have to be a complicated project. Ask yourself these simple questions. Once you get paid, will you stay? Or are you going? There will be more decisions to make, but this one is really the most important.
As I tell my college students during career discussions, I don’t care what your plan is. I care that you have a plan. We’re not having a career discussion right now, but I think you get the point.
Do you skip the casino or do you make it a night? Personally, I leave. I will leave as soon as possible. I didn’t know before my big jackpot, but I do now. That is my plan. what is yours
Imagine you’ve won your biggest jackpot. And you can get your I.D. You may also have a Players Club card, so your personal information is on file with the casino. Next comes hand payment and more decisions.
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If you’ve never won a taxable jackpot before, regardless of size, the manual payment process is straightforward. You win the jackpot. The machine will lock. The slot attendant comes. You do the paperwork. Someone else shows up to check the jackpot. Finally, you get paid.
I have already explained the hand payment process when winning a taxable jackpot playing slots in How Slot Machines Pay Taxable Jackpots.
However, there are slight variations in this process when it comes to winning big jackpots. In most states, jackpot verifiers for jackpots of $10,000 or more must be the floor manager instead of another slot attendant.
Tip #1: You can tip the slot attendant and in my opinion,