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Nov

27

2017

When are Tax Forms Necessary in Video Poker Wins?

 When are Tax Forms Necessary in Video Poker Wins?

Unless they play at dollar level or above on single-hand games or quarter-level or above on multi-hand games, video poker players rarely reach the $1,200 threshold that requires a tax form before they’re paid. A royal flush with five quarters wagered brings a $1,000 jackpot — a nice bonanza, but well below the tax trigger.

However, some multi-hand nickel games with bonus multipliers also can hit that level.

The key is combining payoffs on multiple hands, a point that drew this question from a reader.

“I was playing a Triple Play Bonus Poker on nickel Hot Roll, got an 4 on a dice roll, then got four Aces on the deal, with no draw.

“Aces are worth 400, which on nickels is $20. with the dice multiplying by four, that was $80, and I got it three times for a total of $240.

“That got me thinking. What about a royal flush? A nickel royal is worth $200, so if I got 4 on the dice, they’d be $800 apiece. If I got them three times, that’s $2,400.

“Would that mean I’d get a tax form? Is the meaningful figure here the $800 on each royal, or the $2,400 for all three?”

For IRS purposes, all winnings on one play are lumped together, so yes, you would have to sign an IRS form W-2G before the casino could pay you on the three $800 royals. The total payoff you get after any one push of the deal button counts toward the $1,200 threshold at which the form is required.

When you’re playing video poker with multipliers and/or multiple hands, there are extra routes to an IRS-level jackpot. A single nickel royal will reach tax form level with any multiplier of 6x or more. Even without a multiplier, if you’re playing Ten Play, Fifty Play or Hundred Play, six or more royals could take you to $1,200-plus.

With multipliers, even medium-pay hands like full houses and flushes with enough hands and multipliers can bring tax forms.

But the short answer is that any total payoff of $1,200 or more will bring a tax form, even if the component payoffs are smaller.

 

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