Jackpot splitting

My best fiend ';P'; and I always pool our money when we gamble. Usually one of us does well enough to balance out the other if they are losing. Heres the question. If one of us hits big....say six figures, something that is paid out in yearly installments. Is it only the person who actually was on the machine whos name is on the winning or could I say I wanted his name to be on it equally since half of the money used to win it was his? Nice dream I know but curious with yearly installments how that would work.

Jackpot splitting

Never split the money, with more money comes more drama and possibly the end of a friendship. This can get really messy if one of you hit it big

Jackpot splitting

Which of you will pay the taxes? This subjet has come up before, but don%26#39;t remember the title of the thread. You might want to try a search to see if you can find it.

Camille

Alex....we have it before for 125 grand but it was not on a slot machine. We split....and now we are starting a restaurant together. I think sometimes it works out, but I understand what you are saying, I am just lucky to have such a true friend.

Camille, taxes is the reason why I am asking. I assume only the person who physically pressed the button would be the jackpot winner even if the person who deserves half is standing right there. The way we split our first beig win was after I paid the taxes we split the difference, plus we took into consideration that I might have more taxes at the end of the year due to being in a different pay bracket so we put some aside in an account if that came to be.

Please folks, www.irs.gov for tax advice or your qualified tax professional

form 5754 covers this

If more than one person shares in the winnings from a single wager, the total amount of the winnings (less the amount wagered) will determine the amount of the proceeds for purposes of reporting and withholding. Do not allocate winnings to each winner before determining whether the withholding or reporting thresholds were reached.

For example, E puts $1.00 in a slot machine and it is on behalf of himself and Sexy Momma, who contributes an equal amount of the amount being inserted into the machine and who will share equally in any winnings. The slot pull wins wins $500,000. Because the winnings are waaaaay more than $5,000, you must withhold 25% of $499,999. You must prepare a separate Form W-2Gs for E and for Sexy Momma using the information furnished to you on Form 5754.

Vermontnative, in no way i assume your are not good friends at all. So if it came across like that, i would like to appologise. Was making more a random comment on how things could turn out in general

Alex! No No...totally get what you were saying, seen it happen. Money makes people weird. I just lucked into a rarity! No offense at all, in fact I would give the same advice.

Jaco! Your the best ( and I hope Im the hot Momma!)

I was just wondering if the casino would let you split it with the other person or if THEY would insist there could not be two winners on a single jackpot.

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I think the casino views only 1 person as a winner, as they typically pay out the winnings on the spot, not in yearly installments. (I could be very wrong, I have yet to win 6 figures!) I would assume, if your at a slot machine, they would lay the whole winnings/tax responsibility on the one sitting at the machine, with the players card inserted. Good luck ';hot mamma!'; =)