Question of the Day - 23 July 2018

On any single jackpot of $1,200 or more, the casino must issue tax paperwork (the W-2G) to the jackpot winner; a copy also goes to the IRS.

But according to our book, Tax Help for Gamblers, by Jean Scott and Marissa Chien, no federal or state law requires a U.S. citizen to give printed proof of his Social Security number in order to be issued a W-2G and paid a jackpot. He or she can provide it verbally or in writing. To ensure that a player gives the correct number, the casino gives the player a W-9 form, Request for Taxpayer Identification Number and Certification. By signing this form, the player certifies, under penalties for perjury, that this is the correct Social Security number. This shifts legal responsibility from the casino to the player.

Now, you don’t have to give your Social Security number, if you have one; any number of U.S. citizens don't and some who do don't have it memorized. But if you don't give it up, the IRS requires that the casino withhold 28% of the winnings for federal income tax.

This most often comes into play when Canadians and other foreigners hit jackpots in the U.S. Obviously, unless they have dual citizenship, of which the U.S. is one, they won’t have a Social Security number.

"Some casinos seem to mix up Social Security cards and ID cards. You do have to show a valid ID or the casino can refuse to pay off a W-2G jackpot until you do. You do not have to show your original Social Security card. In fact, it is written right on your Social Security card that it is not to be used as identification," Jean and Marissa write in Tax Help for Gamblers. This is, as the question states, most common at Native American casinos, though whether it's a mix-up or something else, we couldn't say.

"What can you do if a casino doesn’t seem to be following the IRS rules and requires an original Social Security card? Ask to speak to a supervisor or even a senior casino executive. One player suggested carrying W-9 forms with you (they can be printed out from the IRS website) and giving one to the casino employee making this mistaken request. He said that some new and/or small casinos, especially Native American ones, don’t seem to know about this option."

By the way, Tax Help for Gamblers will be updated in a completely new edition by the end of this year to cover all the developments brought on by the new tax laws.