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Recently, I was playing quarter 10-handed Ultimate X Bonus Streak. On one iteration, I hit a royal flush that paid 12,000 quarters (4000 x 3 multiplier). Of the other 9 hands, 3 paid 60 quarters each for a total payout of $3,045. The W-2G I received was for $3,045. Shouldn’t it have been for just the $3,000 royal payout? Why are the other 3 hands that totaled $15 each included, since they were well below the 600-to-1 threshold? Which leads me to another question. If I were to hit a 10-handed jackpot where each hand paid 540 quarters for a total of 5,400 quarters or $1,350, would I be subjected to a W-2G? I can’t seem to understand how to reconcile the two situations.
[Editor's Note: Bob Dancer, who's received enough W-2Gs in his career to make him as expert in that area as he is in video poker itself, answers this one.]
You seem to want the casino to handle Ten Play games as 10 separate bets for tax purposes. It doesn’t work that way. For tax purposes, the entire bet you made ($25) was one bet. On that one bet, you received a total payout of $3,045. A W-2G was properly made out in that amount.
In your second example, a $1,350 jackpot would likewise be issued a W-2G.
The 600-to-1 threshold doesn't apply to video poker (or slots). Which means you do not receive W-2Gs on single-line royals for pennies, nickels, dimes, or quarters -- even though those typically return 800-for-1.
For your reconciliation purposes, keep in mind the W-2G is issued for the entire jackpot, which is not the same as the amount won.
For example, assume you're playing $1 Triple Play and are dealt and hold a $400 jackpot on each line. That totals $1,200. It's W-2G time. Many players have argued that this is a win of only $1,185, because they had to pay $15 to earn the $1,200. Again, the win is irrelevant for tax purposes. It's the bottom-line payout that counts.
These players can argue the point until the cow that jumps over the moon to chase flying pigs is blue in the face. But until they sign the W-2G, they won't get paid.
I have a question I can't find a clear answer to. As a foreigner, what's the easiest way to deposit cash in Vegas? I'm not talking about big amounts, but what if I want to deposit $500? Or $5,000? Can I open a bank account in Vegas? Can the casino wire it for you? Do they charge for this service? What if it's table game or poker money? Will the casino still perform a wire if you have the chips on you? I've only heard about this with slot jackpot. It seems like getting cash is easy enough by using an ATM or depositing front money, but I never hear about getting money back home. Not that I pretend I'm going to win, but I wonder what happens to people who do and are foreigners.