Signers and taxes

[wilderness]

Could anybody provide insight as to how it works for online accounts?

What's the limit?
Is it still 300 to 1 to sign and more than 1k for taxes?

EX.
A $2 Tri pays $3,500, however a $0.50 tri pays one quarter (825), and should be taxable?

TIA

[wilderness]

In keeping with all Federal Tax Laws set forth by the Internal Revenue Service (IRS), any wager that results in winnings of $600.00 will be reported to the IRS, if the amount of winnings is at least 300 times the original amount wagered. Any wager resulting in winnings over $5,000.00, is subject to reporting and withholding if the amount of winnings is at least 300 times the original amount wagered.

It seems a 1099 is forthcoming.

[sharkey11]

im not a tax expert but 300-1 they do not withhold 5000 or more they used to keep 20 % and you would still be libale for more depending on your income . of course offshore zero tax but youd have the worrie of getting paid. the old days of simulecasting were the best you could get a beard to sign for you :) nice hit an gl the adw will send you a form or you can download it from them .theyr just like the track they report it all to the bandits irs

[Jess Hawsen Arown]

Could anybody provide insight as to how it works for online accounts?

What's the limit?
Is it still 300 to 1 to sign and more than 1k for taxes?

EX.
A $2 Tri pays $3,500, however a $0.50 tri pays one quarter (825), and should be taxable?

TIA

The odds were at least 300-1 and the payout was at least $600. The taxman waiteth.

[Parkview_Pirate]

In keeping with all Federal Tax Laws set forth by the Internal Revenue Service (IRS), any wager that results in winnings of $600.00 will be reported to the IRS, if the amount of winnings is at least 300 times the original amount wagered. Any wager resulting in winnings over $5,000.00, is subject to reporting and withholding if the amount of winnings is at least 300 times the original amount wagered.

It seems a 1099 is forthcoming.

Actually, it's a W2-G form you'll get for that nice tri hit, because the payout exceeded $600. No money is taken out until the payout is $5K - then 25% for the Feds, and the state rate for your account home of record. More details here:

https://www.twinspires.com/support

All the online ADWs provide the ability to review and download any "signers" you hit, or at least TVG, TS and Xpressbet. Not long ago, they would all also mail you an end-of-year summary to your address on the account - not sure if they all do that, but TS did for me last year.

Most states allow you to deduct losses from your W2-G "winnings", so your bottom line shouldn't be affected unless you're one of the few who shows a profit at year end. An exception would be Illinois, where those rats like to tax you 3.5% on your gross income.