Multiply 1 dollars bets on one ticket

[delayjf]

If someone has multiply 1 dollar bets on one ticket - which can be done using the betting cards vs. manual inputing - AND the 1 dollar payout is between 300 - 600 dollars Can you cash your multiple 1-dollar ticket without having to sign a W-G like you could if you had a single 1 dollar ticket that paid the same amount?

[pic6vic]

If it is the same exact wager you would be subject to the IRS. Differnet wagers would not qualify. Example you hit a $1 pick 3 for $400.00. If you have the same pic 3 on the ticket no matter what combos, then it is subject to the IRS.

A TRI and PIC # would be independent of each other

[schweitz]

If it is the same exact wager you would be subject to the IRS. Differnet wagers would not qualify. Example you hit a $1 pick 3 for $400.00. If you have the same pic 3 on the ticket no matter what combos, then it is subject to the IRS.

A TRI and PIC # would be independent of each other

Above example does not work---winnings MUST first be $600 AND 300 times base bet for IRS paperwork. A $1 base wager that pays less than $600 is NOT an IRS item.

[pic6vic]

that is not correct. the payout is 400-1 and you have 2 combos on the same ticket for $800. tax time

[Tee]

Multiple Wagers

For multiple wagers sold on one ticket, such as the $12 box bet on a Big Triple or Trifecta, the wager is considered as six $2 bets and not one $12 bet for purposes of computing the amount to be reported or withheld. Winnings on a $12 box bet must be reported if they are $600 or more, and federal income tax must be withheld if the proceeds total more than $5,000 or, if the proceeds do not exceed $5,000, if the recipient fails to provide a TIN.
Identical Wagers

Winnings from identical wagers (for example, two $2 bets on a particular horse to win the same race) are added together for purposes of the reporting and withholding requirements. Also, winnings from identical wagers that are not part of the payment for which the Form W-2G is being prepared are added together for purposes of withholding to determine if the total amount of proceeds from identical wagers is more than $5,000.

[BlueShoe]

If you expect big exotic payoffs if you hit,between $300 and $600 for a $1 bet,the solution is quite simple.Just enter one sequence at a time and then hit print on the Sam,then hit repeat and print over again until you are done.Very easy to crank out 10,20,or more tickets at a very rapid pace.If your track offers dime supers,do the same thing.When that bomb super hits that pays four or five thousand for a buck,that stack of dime tickets in your pocket gets you home tax free.

[schweitz]

What the IRS says.

http://www.irs.gov/instructions/iw2g/ar02.html#d0e254

[andicap]

Identical Wagers

Winnings from identical wagers (for example, two $2 bets on a particular horse to win the same race) are added together for purposes of the reporting and withholding requirements. Also, winnings from identical wagers that are not part of the payment for which the Form W-2G is being prepared are added together for purposes of withholding to determine if the total amount of proceeds from identical wagers is more than $5,000.

I interpret this to mean if you make a pair of identifcal $1 bets that pay 300-1 and result in winning more than $600 then you have to sign for it.
I don't see what the difference to the IRS would be if they were on the same ticket or a different ticket.

[Steve 'StatMan']

Identical Wagers

Winnings from identical wagers (for example, two $2 bets on a particular horse to win the same race) are added together for purposes of the reporting and withholding requirements. Also, winnings from identical wagers that are not part of the payment for which the Form W-2G is being prepared are added together for purposes of withholding to determine if the total amount of proceeds from identical wagers is more than $5,000.

I interpret this to mean if you make a pair of identifcal $1 bets that pay 300-1 and result in winning more than $600 then you have to sign for it.
I don't see what the difference to the IRS would be if they were on the same ticket or a different ticket.

I sense the it is a matter of whether or not the parimutuel system will flag it as a signer or not. If made on separate tickets, the bettor is supposed to come forward on their own. But I think delayjf is asking if they are made on the same paper ticket, will the system know it and flag it. The way I understand it, you're supposed to report it in both cases, even if the system doesn't catch it.

Of course, if you're betting at a track or otb without a player tracking/rewards card, no one might be any the wiser. However, if you are using account wagering, or a player tracking card, and the IRS demands/suppeonas betting information from the track, they may find out about it - at least if the player card system is tracking all your bets and results. (Some do, some do not.)

[gjones6794]

Do you guys that live in a state with income taxes have to pay taxes on the signers too? My state does not have a state income tax so I am just curious.

[pic6vic]

Now we are on the right track. If you bet separate tickets and go to cash, just don't cash at the same time. If audited the IRS will not go that deep into your wagering. I have been audited 3 times by the IRS back in the early 90's.

Now here's a question I do not know the answer to. If I make a $1.00 bet multiple times on YOUBET is it taxable if the payout is 300-1 or better. ( I would never use YOUBET for this wager).

[toetoe]

Yes, we do get taxed.

A seller at GGF groans when someone cashes a $2 bet that pays between $600 and 1,200, "Jeez, you could beat this, ya know. What a hassle." :D

[JustRalph]

Do you guys that live in a state with income taxes have to pay taxes on the signers too? My state does not have a state income tax so I am just curious.

oh yeah, Ohio even sent me a notice that they were aware of the 2002 Preakness Superfecta I hit..........it was a veiled letter that "reminded me that I must claim all gambling winnings on my state tax form" They sent me this little missive about a month after the Preakness. How they knew, I don't know. I am sure somebody reported it.

[Paging]

Now here's a question I do not know the answer to. If I make a $1.00 bet multiple times on YOUBET is it taxable if the payout is 300-1 or better. ( I would never use YOUBET for this wager).

Youbet is no different than the track.

If you have a tri 3X that pays $500 for the $1 all on one ticket - you get a W2 for $1500.

If you have the tri 3X on 3 seperate tickets - you get no W2s.


If you have a tri that pays $800 for the $1 on three seperate tickets. You get 3 seperate W2 each with their own unique transaction number.