Tax Question

[Aner]

In race 8 at GP on 3/11/15 the $1 trifecta paid $1196.60. If one had a 50 cent tri ($598.30) would that generate a W2G?

[MONEY]

From my limited experience with signers, it should but it doesn't.

[cj]

No, not a signer. That is one of the benefits of betting smaller denominations.

[OTM Al]

No, not a signer. That is one of the benefits of betting smaller denominations.

If you only bought one .50 tri from your ADW, then not a signer. If you hit that ticket a couple times though, they will group it as a like bet and you will have to file.

[Track Collector]

The relevant criteria in this case is:

"$600 or more in gambling winnings (except winnings from bingo, keno, slot machines, and poker tournaments) and the payout is at least 300 times the amount of the wager".

You missed the W-2G generation threshold by $1.70. :)


...

[Track Collector]

If you only bought one .50 tri from your ADW, then not a signer. If you hit that ticket a couple times though, they will group it as a like bet and you will have to file.

OTM Al correctly mentions a condition that I did not consider.

I "think" this multiple grouping also applies when tickets are purchased at the track/otb, but I don't know if it is enforced, and regardless, the player can get around it then by cashing at multiple windows. ADWs on the other hand, where individual ticket transactions are all recorded and subject to review, will wisely do their best to comply with all reporting requirements.

[thespaah]

OTM Al correctly mentions a condition that I did not consider.

I "think" this multiple grouping also applies when tickets are purchased at the track/otb, but I don't know if it is enforced, and regardless, the player can get around it then by cashing at multiple windows. ADWs on the other hand, where individual ticket transactions are all recorded and subject to review, will wisely do their best to comply with all reporting requirements.
Yes. That is correct. If several say $0.50 trifecta bets on the same combination on the same ticket, it is treated for tax purposes as one bet.
If the bests are made on separate tickets or better separate windows, they are considered individual bets.
My friend's late grandfather taught us that trick some time ago....
As far as I am aware, the same applies today.

[therussmeister]

Yes. That is correct. If several say $0.50 trifecta bets on the same combination on the same ticket, it is treated for tax purposes as one bet.
If the bests are made on separate tickets or better separate windows, they are considered individual bets.
My friend's late grandfather taught us that trick some time ago....
As far as I am aware, the same applies today.
Technically you are supposed to group all bets. Different tickets or different windows has nothing to do with it, but there is no way that law can be enforced unless you present the tickets all at once when you cash. Even then you may get away without signing, depends on the training the cashiers receive.

[thespaah]

Technically you are supposed to group all bets. Different tickets or different windows has nothing to do with it, but there is no way that law can be enforced unless you present the tickets all at once when you cash. Even then you may get away without signing, depends on the training the cashiers receive.
Understood. But there is no way to actually compel an individual to cash in all of their winners at one time.
And of course, "supposed to" in the case of smart people who are looking to avoid what are considered confiscatory taxes, means "thanks for the info, but I'm not going to volunteer my money"....
Trust me when I tell you this. If I had two 50 cent tri winners that if they were a one dollar bet, rest assured I would do what I needed to in order to keep Uncle Sam's grubby paws off my winnings.
If that means cashing one at one window and cashing the other at another window, I would do that. Or cash them on different days. Or cash one and mail in the other...Whatever it takes.

[Aner]

Thanks to all for the great information.

[happy camper]

If I bet a 20 cent pick 4 that paid $700, I should expect a w2 form coming, right?

[Hoofless_Wonder]

If I bet a 20 cent pick 4 that paid $700, I should expect a w2 form coming, right?

Correct. Some ADWs mail them to you, others will only have it online for you to download.

[stu]

Better yet come to Woodbine for your horseplayer vacations. Canada doesn't tax windfalls. No signers on live or simo.

[SandyW]

When you cash these tickets in a SAM machine, you will get a voucher that is untaxed.

[Hoofless_Wonder]

When you cash these tickets in a SAM machine, you will get a voucher that is untaxed.

Maybe at Woodbine.

At American tracks, you'll get your ticket back with a message to "see a teller...." At least that's what's happened to me.