Premier Cruise Snowball Raffle Drawing

[mollygirl]

On my recent cruise, the lady that won the final Snowball Raffle drawing won $1,600. She was given a form to fill out that states her win, and she had to enter personal info about herself. Anyway, is this taxable in the same way that other gambling winnings are? Will she get something from the IRS for next year's return? Is it taxed at 25%? Just curious since I am not a big-time gambler and have little knowledge of these things. Thanks all.

[mkcurran]

Yes. Carnival states on their website that they will send a W2-G to any winners. She'll have to include the amount on her return next year as taxable income. She'll pay what ever rate she pays for the rest of her taxes.

Carnival can with-hold up to 29% of the winnings for taxes, depending on the circumstances.

[mollygirl]

Thanks for the info - very interesting.

[bingomamma19]

On my recent cruise, the lady that won the final Snowball Raffle drawing won $1,600. She was given a form to fill out that states her win, and she had to enter personal info about herself. Anyway, is this taxable in the same way that other gambling winnings are? Will she get something from the IRS for next year's return? Is it taxed at 25%? Just curious since I am not a big-time gambler and have little knowledge of these things. Thanks all.

 

Yes, as an American citizen we are responsible for taxable winnings the same as if at a land based casino here.

 

I won a $5000 jackpot on the Fascination a while back and was given the tax forms by the end of the cruise. Nothing was withheld from the winnings though..they gave me 5k in cash.

[evandbob]

If you win a jackpot on a cruise ship in international waters, the Carnival will report the winnings to the US IRS and you will get a W-2G form showing your winnings if over $5K as taxable income.

 

One does have the option of having Federal taxes withheld at that point, however most just take the lump sum without withholding. In fact, I don't ever remember being asked about withholding in any sea based casino. If you itemize deductions on your annual return, you will have the opportunity to offset the gambling income by totaling your losses against it.

 

The rules about race track and casino winnings have been changed recently, so make sure your tax person is up to date on the latest IRS guidelines.

[bingomamma19]

If you win a jackpot on a cruise ship in international waters, the Carnival will report the winnings to the US IRS and you will get a W-2G form showing your winnings if over $5K as taxable income.

 

One does have the option of having Federal taxes withheld at that point, however most just take the lump sum without withholding. In fact, I don't ever remember being asked about withholding in any sea based casino. If you itemize deductions on your annual return, you will have the opportunity to offset the gambling income by totaling your losses against it.

 

The rules about race track and casino winnings have been changed recently, so make sure your tax person is up to date on the latest IRS guidelines.

 

If you win over $1199 it has to be reported to the IRS. That's the point that you get the tax forms.

[rellersi]

If you win over $1199 it has to be reported to the IRS. That's the point that you get the tax forms.

 

If you win the snowball raffle it is not considered gambling it is considered a gift and you will recieve a 1099 something. I did that last year for $800 and they reported that to the IRS and I had to claim it