Reporting to the IRS
Many players dream of hitting a big jackpot when they play the slots but some are not sure of exactly what happens when they do win. They also have questions about the taxes they must pay on their winnings. Here is a look at what happens when you hit a jackpot on the slot machines.
Hand Paid Jackpots
When you hit the winning combination of symbols for a large jackpot your slot machine will lock up. Depending on the machine any of the following will happen: The lights on top of the machine will come on and start flashing, music will start playing or bells will ring and their might be a message across the screen reading “call attendant.” In most casinos and electronic signal is sent back to a central monitoring room and they are aware that a large jackpot was hit.
On smaller jackpots under $5,000 an attendant will come by and verify that you did hit the jackpot and then get your money. In the case of a larger or progressive jackpot they may have technicians come and check the machine to certify that it was functioning properly when the jackpot hit. If you hit one of the wide are progressive machines such as MegaBucks the slot companies that operate the game will come out and verify that machine before giving you a check.
When you hit a jackpot you have the option of taking your winnings in cash or check. Usually very large amounts will be paid by check. In the case of the MegaBucks or similar multi-million dollar jackpots, you will be paid a check for the partial amount and then you have 90 days to decide if you want to be paid a lump sum or an annual annuity on the balance.
IRS Reporting
All casino winnings are subject to federal taxes however the IRS only requires the casinos to report any wins over $1,200 on slot and video poker machines or other games such as keno, lottery or hose racing. When you have a win equal to or greater than $1200, you will be issued a W-2G form. This form lists your name, address and social security number. The casinos are not required to take out withholding tax on jackpots under $5,000 as long you supply your social security number. If you don’t provide your social security number the casinos will withhold 28 percent on smaller jackpots.
You can request a specific amount of withholding tax to be taken out on any jackpot you win. Some player like to do this to avoid a big tax payment in April when the file their income tax returns. The additional withholding may not be necessary if you keep a log book.
The law allows you to deduct gambling loses up to the amount of your winnings. You can only do this if you have documentation of your losses. Keeping a diary or logbook, is the way to do this.
Proper Identification
The casino will require proper identification before you are paid your jackpot. U.S. casinos can refuse to pay you until you produce proper identification. Your identification must have your photo on it. You can use a driver’s license, Military ID or passport. As a rule of thumb, if it were able to board an airline flight with the ID then it will be valid in the casino to claim your jackpot.
If you don’t produce an ID you will be photographed and the casino will hold your winnings until you come back with proper ID. This is the reason you should always carry a valid form of identification with you when you visit the casino.
When the casinos check your identification they will also be checking your age to make sure you are legally old enough to be playing. The minimum age for gambling varies from State to State but under age gamblers will not be paid if they hit a jackpot. This is the law in all jurisdictions and it has been upheld in the courts.
Plan Ahead
Before you start playing your favorite slot machines you should have a plan for what you will do when you hit a jackpot. Players get very excited when the hit the big one and this may affect the decisions they make about their winnings. It will be helpful if you know ahead of time how much withholding you want taken out or if you want a check for all or some of the amount. Regardless what decisions you make, don’t forget to bring your ID with you when you play.
Saturday, October 20, 2007
Blackjack Basic Strategy
Learning the Chart
Blackjack basic strategy is based on the mathematics of the game. It has been tested and refined through computer simulations. When it is followed correctly it reduces the house edge to the minimum, which is usually about one-half of a percent. Minor adjustments are made to basic strategy depending on certain rule variations that the different casinos can chose to use. For example some casinos will allow you to double down after splitting (DOS) and some do not allow it. There are also some changes made to basic strategy for single and multiple deck games.
If you want to be a successful blackjack player you will need to learn basic strategy. Most players start learning by referring to a basic strategy chart. The strategy chart shows you how to play your first two cards based on the dealers up card.
Referring back to the Blackjack 101 article, you know that the house gains its edge by the fact that the player must act first. Since the basic strategy chart only deals with the first two cards, you will also need to learn what decisions to make after taking a hit.
Translate the Chart
The best way to do this is to translate the basic strategy chart into plain English that explains how to play a hand with three or more cards. Let's look at an example:
If your first two cards are and a 5 and a 3 you have a total of eight. The chart tells you to hit. You draw another 3, which gives you a total of eleven. The chart tells you to double on 11 but you can only double on your first two cards. Therefore you must hit.
When we translate the strategy chart into plain English, we use the word "otherwise" when dealing with situations that are different because of multiple cards. If we were to write out the example above it would be: If you have 11 - double, otherwise hit.
I have written out how to handle multi card decisions for hard hands, soft hands and split pairs. I have placed this information into three "How to Play" pages that you can link to below. Here is how to play basic strategy when there are more than two cards involved written out in plain English.
How to Play Hard Hands
A hard hand is two starting cards that do not contain an ace.
If you have eight or less, always hit.
If you have Nine: Double if the dealer has 3 thru 6 - otherwise hit.
If you have Ten : Double if the dealer has 2 thru 9 - otherwise hit.
If you have Eleven: Double if the dealer has 2 thru 10, Hit if dealer has Ace.
If you have Twelve: Hit if the dealer has 2 or 3, Stand if the dealer has 4 thru 6, otherwise hit.
If you have 13- 16: Stand if the dealer has2 thru 6, otherwise hit.
If you have 17 - 21: Always Stand.
How to Play Soft Hands
A soft hand is when one of your starting hands contains an ace.
If you have Ace 2 or Ace 3: Double if the dealer has 5 or 6 - otherwise hit.
If you have Ace 4 or Ace 5: Double if the dealer has 4 thru 6 - otherwise hit.
If you have Ace 6: Double if the dealer has 3 thru 6 - otherwise hit.
If you have Ace 7: Stand if the dealer has 2, 7 or 8. Double 3 -thru 6 - otherwise hit.
If you have Ace 8 or Ace 9: Always Stand.
How to Play Pairs
If you have a pair of Aces or Eights: Always split.
If you have a pair of twos or threes: Split if the dealer has 2 - 7, otherwise hit.
If you have a pair of fours: Split if the dealer has 5 or 6 - otherwise hit.
If you have a pair of fives: Double if the dealer has 2 thru 9 - otherwise hit.
If you have a pair of sixes: Split if the dealer has 2 thru 6 - otherwise hit.
If you have a pair of sevens: Split 2 thru 7 - otherwise hit.
If you have a pair of nines: Split 2 thru 6, and 8 or 9. Stand if the dealer has 7, 10 or Ace.
If you have a pair of tens: Always Stand.
Translating the Blackjack Basic Strategy Chart into plain English makes it a lot easier to memorize. You can even make up flash cards to help you learn.
Blackjack basic strategy is based on the mathematics of the game. It has been tested and refined through computer simulations. When it is followed correctly it reduces the house edge to the minimum, which is usually about one-half of a percent. Minor adjustments are made to basic strategy depending on certain rule variations that the different casinos can chose to use. For example some casinos will allow you to double down after splitting (DOS) and some do not allow it. There are also some changes made to basic strategy for single and multiple deck games.
If you want to be a successful blackjack player you will need to learn basic strategy. Most players start learning by referring to a basic strategy chart. The strategy chart shows you how to play your first two cards based on the dealers up card.
Referring back to the Blackjack 101 article, you know that the house gains its edge by the fact that the player must act first. Since the basic strategy chart only deals with the first two cards, you will also need to learn what decisions to make after taking a hit.
Translate the Chart
The best way to do this is to translate the basic strategy chart into plain English that explains how to play a hand with three or more cards. Let's look at an example:
If your first two cards are and a 5 and a 3 you have a total of eight. The chart tells you to hit. You draw another 3, which gives you a total of eleven. The chart tells you to double on 11 but you can only double on your first two cards. Therefore you must hit.
When we translate the strategy chart into plain English, we use the word "otherwise" when dealing with situations that are different because of multiple cards. If we were to write out the example above it would be: If you have 11 - double, otherwise hit.
I have written out how to handle multi card decisions for hard hands, soft hands and split pairs. I have placed this information into three "How to Play" pages that you can link to below. Here is how to play basic strategy when there are more than two cards involved written out in plain English.
How to Play Hard Hands
A hard hand is two starting cards that do not contain an ace.
If you have eight or less, always hit.
If you have Nine: Double if the dealer has 3 thru 6 - otherwise hit.
If you have Ten : Double if the dealer has 2 thru 9 - otherwise hit.
If you have Eleven: Double if the dealer has 2 thru 10, Hit if dealer has Ace.
If you have Twelve: Hit if the dealer has 2 or 3, Stand if the dealer has 4 thru 6, otherwise hit.
If you have 13- 16: Stand if the dealer has2 thru 6, otherwise hit.
If you have 17 - 21: Always Stand.
How to Play Soft Hands
A soft hand is when one of your starting hands contains an ace.
If you have Ace 2 or Ace 3: Double if the dealer has 5 or 6 - otherwise hit.
If you have Ace 4 or Ace 5: Double if the dealer has 4 thru 6 - otherwise hit.
If you have Ace 6: Double if the dealer has 3 thru 6 - otherwise hit.
If you have Ace 7: Stand if the dealer has 2, 7 or 8. Double 3 -thru 6 - otherwise hit.
If you have Ace 8 or Ace 9: Always Stand.
How to Play Pairs
If you have a pair of Aces or Eights: Always split.
If you have a pair of twos or threes: Split if the dealer has 2 - 7, otherwise hit.
If you have a pair of fours: Split if the dealer has 5 or 6 - otherwise hit.
If you have a pair of fives: Double if the dealer has 2 thru 9 - otherwise hit.
If you have a pair of sixes: Split if the dealer has 2 thru 6 - otherwise hit.
If you have a pair of sevens: Split 2 thru 7 - otherwise hit.
If you have a pair of nines: Split 2 thru 6, and 8 or 9. Stand if the dealer has 7, 10 or Ace.
If you have a pair of tens: Always Stand.
Translating the Blackjack Basic Strategy Chart into plain English makes it a lot easier to memorize. You can even make up flash cards to help you learn.
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