JohnTChance Wrote:
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> Two points regarding this are made in Steve
> Crist's new book, EXOTIC BETTING.
>
> 1. A superfecta that pays $48,000 for $1 will be
> reduced by $12,000 in federal withholding. However
> a dime superfecta that returns $4,800 for 10 cents
> will NOT be subject to withholding because it
> falls below the $5,000 threshold. For this reason,
> superfecta players should consider making their
> bets in dime increments wherever possible. Ask
> your favorite teller to "repeat." "Repeat that 10
> times, please."
Steven Crist is giving VERY bad advice. This is similar to someone trying to deposit more than $10,000 cash in a bank by coming in Monday through Friday and depositing $2,000 each day... it doesn't work. The Treasury Department is very interested in why you have $10k cash just like the IRS will see that you have multiple tickets bought to specifically avoid the "at the window" withholding. Here's the law, right from the IRS website:
Identical Wagers
Winnings from identical wagers (for example, two $2 bets on a particular horse to win the same race) are added together for purposes of the reporting and withholding requirements. Also, winnings from identical wagers that are not part of the payment for which the Form W-2G is being prepared are added together for purposes of withholding to determine if the total amount of proceeds from identical wagers is more than $5,000.
I personally know someone who was dumb enough not to report a $2k winner and was subsequently audited and fined. It's not worth the money you're trying to save. Take your winnings and be happy.
