1099

On our recent Carnival cruise we had some luck in the casino. The host took all my info and said a 1099 would be in our mailbox the last night along with our bill. No 1099 was given, did I get lucky again or did they turn it into IRS? My brother-in-law did not get one either.

Hello! The first question I need answered is how much money in WINNINGS are we talking about will be listed on the so called 1099?

Do not assume they will not file it despite you did not get it issued to you during your cruise. If they do and you do not report it you may get penalized beyond belief.

On our recent Carnival cruise we had some luck in the casino. The host took all my info and said a 1099 would be in our mailbox the last night along with our bill. No 1099 was given, did I get lucky again or did they turn it into IRS? My brother-in-law did not get one either.

Call customer service...

Call customer service...

HAHA! You are a funny guy. :D

Clearly he doesn't want to talk to customer service. He wants to get lucky again. Get it? :D

did they get your ss number if not you might be in luck

did they get your ss number if not you might be in luck

It appears they did as the OP said in his post the host took all his information.

HAHA! You are a funny guy. :D

 

Clearly he doesn't want to talk to customer service. He wants to get lucky again. Get it? :D

I get it but my point is that:

1. Not many here would know what CCI will or will not do in such cases.

2. Let's say CCI reported to IRS for someone else in the past. Who is to say that they will do so this time?

3. Similarly, let's say CCI did not report to IRS for someone else in the past. Who is to say that they will do so this time?

There are lots and lots and lots of things CC is great for. Such questions require a personalized reply from CCI and/or OP's CPA to be helpful to OP.

I get it but my point is that:

 

1. Not many here would know what CCI will or will not do in such cases.

 

2. Let's say CCI reported to IRS for someone else in the past. Who is to say that they will do so this time?

 

3. Similarly, let's say CCI did not report to IRS for someone else in the past. Who is to say that they will do so this time?

 

There are lots and lots and lots of things CC is great for. Such questions require a personalized reply from CCI and/or OP's CPA to be helpful to OP.

This is a good, but this could be an easy problem to fix depending on the amount won. If the winnings were less than 10K on this cruise he could easily justify a loss of 10K for the year as well, no questions asked. It would be a wash. Now if he it a Royal Flush in Carrribbean Stud poker and won a 100K jackpot then we have a different ball game. This is why I asked how much he won.

This is a good, but this could be an easy problem to fix depending on the amount won. If the winnings were less than 10K on this cruise he could easily justify a loss of 10K for the year as well, no questions asked. It would be a wash. Now if he it a Royal Flush in Carrribbean Stud poker and won a 100K jackpot then we have a different ball game. This is why I asked how much he won.

Won $2500, will claim it. Will also ask CCL for a win-loss statement to show losses also in case there are any IRS questions about losses. Did not ask my ss number, but checked my drivers license info.

Won $2500, will claim it. Will also ask CCL for a win-loss statement to show losses also in case there are any IRS questions about losses. Did not ask my ss number, but checked my drivers license info.

I'm a tax accountant, just to preface this. It's an excellent idea to ask CCL for a win-loss statement, since income from gambling winnings can be offset by gambling losses, up to the amount of the winnings. This is only true, however, if you itemize your deductions on Schedule A of your Form 1040, and those losses are limited by the 2% floor of AGI for miscellaneous deductions. (In other words, if your income for the year was $100,000, only the miscellaneous losses IN EXCESS of $2,000 are deductible. You may have other deductible misc. expenses such as tax prep fees, estate tax paid, union dues paid, etc., that can be added in to help you reach that floor). The one exception I can think of would be if you filed a Schedule C (self-employment income) as a professional gambler (pro poker players or sports bettors usually do this)...then those losses would be deductible in full on that schedule, again only to the extent of the winnings. And if you do that, you'd better be prepared to prove to the IRS that you actually ARE a professional gambler. ;)

--Scott

I'm a tax accountant, just to preface this. ............if you do that, you'd better be prepared to prove to the IRS that you actually ARE a professional gambler........

Nice! and then what does IRS do in future years? :D

Not a 1099, a large casino win would get you a W-2G if they are so inclined to issue one at which time they will ask for you SS number to put on it and you get a copy immediately.

On these other wins reported above, it seems to me without a SS number for reference, it's a non-event. The IRS works on SS numbers, not names and drivers licenses. I don't carry my SS card with me, so they have to take my word for it.

Not a 1099, a large casino win would get you a W-2G if they are so inclined to issue one at which time they will ask for you SS number to put on it and you get a copy immediately.

 

On these other wins reported above, it seems to me without a SS number for reference, it's a non-event. The IRS works on SS numbers, not names and drivers licenses. I don't carry my SS card with me, so they have to take my word for it.

Yea I also think the casino gave him a bye this time.

Note to self..............If asked for my SSN by a cruise employee, my response is 123-45-6789

I'm a tax accountant, just to preface this. It's an excellent idea to ask CCL for a win-loss statement, since income from gambling winnings can be offset by gambling losses, up to the amount of the winnings. This is only true, however, if you itemize your deductions on Schedule A of your Form 1040, and those losses are limited by the 2% floor of AGI for miscellaneous deductions. (In other words, if your income for the year was $100,000, only the miscellaneous losses IN EXCESS of $2,000 are deductible. You may have other deductible misc. expenses such as tax prep fees, estate tax paid, union dues paid, etc., that can be added in to help you reach that floor). The one exception I can think of would be if you filed a Schedule C (self-employment income) as a professional gambler (pro poker players or sports bettors usually do this)...then those losses would be deductible in full on that schedule, again only to the extent of the winnings. And if you do that, you'd better be prepared to prove to the IRS that you actually ARE a professional gambler. ;)

 

--Scott

Scott:

Several family members are IRS agents and one is a IRS Senior Manager and we have discussed this issue before. My husband also teaches an Income Tax Law course at a local college. This is the information they gave me concerning the above subject:

Gambling losses to the extent of gambling winnings are deductible as Other Miscellaneous Deductions and are not subject to the 2 percent of Adjusted Gross Income . But in order to take this deduction, you would have to itemize. This information can be verified by referring to IRS Publication #529, Page 11, under: "Deductions Not Subject to The 2 Percent Limit." These can be viewed on-line at IRS.gov.

In addition, the IRS does not need SS numbers to identify an individual. They also use a data base which cross references names, addresses, etc. The IRS often has special projects to identify non-compliant tax payers. They could in this instance obtain the win/loss statements from the cruise line to identify fraud. Bottom line, it is best to be truthful and not worry about IRS audits.

Also, the cruise line should issue a form W2-G not a 1099 on gambling winnings.

BTW, Congrats...rwegonyet on your winnings!:)

Note to self..............If asked for my SSN by a cruise employee, my response is 123-45-6789

Sugarland is noted for folks like you.:rolleyes:

IRS regulations!

1. If you earn, find or win money, we're your partner!

2. If you lose money, GO TO WORK!

Taxguy77, retired CPA

Heard it before but worth repeating:

New simplified 3 line tax form:

1. How much did you make? ____________

2. How much did you already pay? _________

3. Where's the rest ?_________

Declare it, it's just not worth the bs that could come with not declaring it.

A little trick I used last year, if your in a state that allows sports/horse betting, take a trip to a casino/horse track, grab as many losing tickets as you can find, instant deduction.

I believe a 1099 comes from winning a prize through a drawing (raffle) or a quiz show. The WG-2 comes from gambling. Usually the 1099 is tougher to declare losses against, although when I won $10k a few years ago at a casino, I was given a 1099 and was told that since the number of entries in the drawing was based on my amount of play, that I could deduct losses against it.

In my experiences, the best thing to do is to keep an accurate diary of your gambling for the year. If you're using paper, make sure all of the entries are not made on the same day. With player-tracking cards at casinos, it is usually easy to get a win-loss statement at the end of the year. Make sure you use the card-especially at table games. If you play the lottery or visit a casino occasionally, you'll probably be surprised at the end of the year as to how much you can declare against your winnings.

Collecting tickets at the horse races is an "old method" of getting around your winnings. I always wondered what the IRS would think of a gambler that is betting on every horse in the race except the winner. I've also heard of other gamblers that keep all of their ATM receipts from casinos.

Personally, I don't think the IRS is too concerned about someone that wins $2500 at a casino. I have hit several jackpots a year for several years and I have always declared losses to match the winnings and I have never been questioned. Possibly the IRS has looked at my checking account and knows that I am being honest. But I still make sure that I have accurate records in case they do check someday.

I would declare the winnings. If you're trying to avoid taxes, failure to report the winnings would be a great way to get the IRS to look at the rest of your returns for the past few years. Also, from my experiences, the information given by the tax experts in this thread is accurate.

On land I think we can win up to $1,199 without paying taxes. Does this apply on the winnings at the ship casino too?

On land I think we can win up to $1,199 without paying taxes. Does this apply on the winnings at the ship casino too?

Actually, Uncle Sam believes he is entitled to part of that $5 football pool. The $1199 just doesn't trigger a W2-G being generated but you still owe taxes.

Declare it, it's just not worth the bs that could come with not declaring it.

 

A little trick I used last year, if your in a state that allows sports/horse betting, take a trip to a casino/horse track, grab as many losing tickets as you can find, instant deduction.

I don't think that is a wise idea. I can remember that someone got into a lot of trouble for doing this. They were able to prove that they were not his as he could not explain the footprints all over the tickets.

The fact that you just happen to have $2500 in losing race tickets on the same day you won $2500 will not fly. What did you do all the other days you gambled? BTW, my DW works the IRS window at the local horse track.

Probably a stupid question, but if the ship is registered in the Bahamas or other foreign port, why do they have to file anything with the IRS, especially given they will only operate in International waters? I'm not doubting it, just wondering why they do it.

thx