Dime Supers & Tax Reporting/Withholding (From 10/15 ATR question)
 

While driving to work this morning I was listening to the replay of yesterday's show and Steve received a question reporting tax reporting on a Dime Superfecta.

It is my understanding that it is reportable (W2-G) if the winnings are greater than $600 and 300 - 1. I read this to mean that if a Dime super pays greater than $600.10 than you would have a reportable transaction. IF the ADW / Track is doing their job correctly they should aggregate ALL identical bets when considering the $600 threshold. Remember that even though the ticket cost > .10 the winning wager only cost .10 when computing the "winnings" on the wager.

The withholdings begin when winning payoffs are greater than $5,000.

HH,

Thx! And what I found last night after the show has $602.00 as the threshold on a successful .10 superfecta wager... Am going to get clarification today though to be certain.

This is correct that anything over $601 on a dime super will be an IRS ticket. Also if the dime pays $121 and you have a single ticket for 50 cents(5 dimes) it will be an IRS ticket. Always get the dime supers in single dime tickets, then punch it multi times to avoid the IRS.

THX Dave!

Steve Crist in 'Exotic Betting' also makes it very clear to buy the lowest denomination possible when betting any multirace wager or take advantage of .50 cent tri's and .10 supers when possible and get multiple tickets.

I've also noticed that if you have a set of tickets on some ADWs that totals an amount that's taxable then you are now being given a W-2. For example, if you have a Pick 4 that pays $340 for $1 but you have it 3 times then you are being given a W-2G for $1020. Perhaps this was going on for a while and my poor wagering kept me from learning it!

NT

as most know, here in AZ we cant bet online so its off to the track or the many OTBs we have here. this gives us the chance to bet without someone,like a ADW, to do this.

you're right. don't cash them together at a track either, or they can give you a W2-G too.

best way to avoid is to punch multiple tickets for min bet and cash them seperately (easier to do at the track).

or convert them to vouchers at a machine and then go cash.

great point!

bottom line is the gov't sucks. These IRS figures are way out of date and belonged to a different era. The taxable amounts should be raised significantly.

If you can avoid this by just turning them into vouchers....what's the point of taxing then?

Only the 'non' tax tickets. If you have a tax ticket and put it into the machine, it will tell you to go to the IRS window.

What they are saying is this. Lets say you punch a P4 ticket 8 times, it hits, and it pay $543 per $1.

If you were to walk to the teller with all 8 tickets, at some tracks you would have to fill out a W2 because they would equate to over the $602 threshold

If you were to walk to 8 different machines, you wouldn't have to worry about that.

Exactly, I have never had a teller try to pull that on me here, as he would never get my business again.(tips) Thats why i use the machines on most of my bets,less tipping. Unless i tip over the machine because it swallowed my voucher and thats a whole nother story.