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taxmap/pubs/p15a-012.htm#TXMP298f4a6c |
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Withholding on Distributions of Indian Gaming Profits to Tribal Members |
If you make certain payments to members of Indian tribes from gaming profits, you must withhold federal income tax. You must withhold if (a) the total payment to a member for the year is over $8,950 and (b) the payment is from the net revenues of class II or class III gaming activities (classified by the Indian Gaming Regulatory Act) conducted or licensed by the tribes.
A class I gaming activity is not subject to this withholding requirement. Class I activities are social games solely for prizes of minimal value or traditional forms of Indian gaming engaged in as part of tribal ceremonies or celebrations.
taxmap/pubs/p15a-012.htm#TXMP52aa3b9b Class II.(p57) |
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Class II includes (a) bingo and similar games, such as pull tabs, punch boards, tip jars, lotto, and instant bingo, and (b) card games that are authorized by the state or that are not explicitly prohibited by the state and played at a location within the state.
taxmap/pubs/p15a-012.htm#TXMP191ddf31 Class III.(p57) |
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A class III gaming activity is any gaming that is not class I or class II. Class III includes horse racing, dog racing, jai alai, casino gaming, and slot machines.
taxmap/pubs/p15a-012.htm#TXMP435c42bf |
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To figure the amount of tax to withhold each time you make a payment, use the table on page 58 for the period for which you make payments. For example, if you make payments weekly, use Table 1; if you make payments monthly, use Table 4. If the total payments to an individual for the year are $8,950 or less, no withholding is required.
A tribal member is paid monthly. The monthly payment is $5,000. Using Table 4, Monthly Distribution Period, figure the withholding as follows:
Subtract $3,458 from the $5,000 payment for a remainder of $1,542. Multiply this amount by 25%, for a total of $385.50. Add $373.45, for total withholding of $758.95.
taxmap/pubs/p15a-012.htm#TXMP4584bc51 |
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Combine the Indian gaming withholding with all other nonpayroll withholding (for example, backup withholding and withholding on gambling winnings). Generally, you must deposit the amounts withheld using EFTPS or at an authorized financial institution using Form 8109, Federal Tax Deposit Coupon. See Publication 15 (Circular E) for a detailed discussion of the deposit requirements.
Report Indian gaming withholding on Form 945, Annual Return of Withheld Federal Income Tax. For more information, see Form 945 and the Instructions for Form 945. Also, report the payments and withholding to tribal members and to the IRS on Form 1099-MISC, Miscellaneous Income (see the Instructions for Forms 1099-MISC).
Tables for All Individuals
(For Payments Made in 2008)
| Table 1—WEEKLY DISTRIBUTION PERIOD | Table 2—BIWEEKLY DISTRIBUTION PERIOD | ||||||||
| If the amount of the payment is: | The amount of income tax to withhold is: | If the amount of the payment is: | The amount of income tax to withhold is: | ||||||
| Not over | $172 | $0 | Not over | $344 | $0 | ||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $172 | $326 | 10% | $172 | $344 | $652 | 10% | $344 | ||
| $326 | $798 | $15.40 plus 15% | $326 | $652 | $1,596 | $30.80 plus 15% | $652 | ||
| $798 | $1,688 | $86.20 plus 25% | $798 | $1,596 | $3,377 | $172.40 plus 25% | $1,596 | ||
| $1,688 | - - - - - | $308.70 plus 28% | $1,688 | $3,377 | - - - - - - | $617.65 plus 28% | $3,377 | ||
| Table 3—SEMIMONTHLY DISTRIBUTION PERIOD | Table 4—MONTHLY DISTRIBUTION PERIOD | ||||||||
| If the amount of the payment is: | The amount of income tax to withhold is: | If the amount of the payment is: | The amount of income tax to withhold is: | ||||||
| Not over | $373 | $0 | Not over | $746 | $0 | ||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $373 | $706 | 10% | $373 | $746 | $1,413 | 10% | $746 | ||
| $706 | $1,729 | $33.30 plus 15% | $706 | $1,413 | $3,458 | $66.70 plus 15% | $1,413 | ||
| $1,729 | $3,658 | $186.75 plus 25% | $1,729 | $3,458 | $7,317 | $373.45 plus 25% | $3,458 | ||
| $3,658 | - - - - - - | $669.00 plus 28% | $3,658 | $7,317 | - - - - - - | $1,338.20 plus 28% | $7,317 | ||
| Table 5—QUARTERLY DISTRIBUTION PERIOD | Table 6—SEMIANNUAL DISTRIBUTION PERIOD | ||||||||
| If the amount of the payment is: | The amount of income tax to withhold is: | If the amount of the payment is: | The amount of income tax to withhold is: | ||||||
| Not over | $2,238 | $0 | Not over | $4,475 | $0 | ||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $2,238 | $4,238 | 10% | $2,238 | $4,475 | $8,475 | 10% | $4,475 | ||
| $4,238 | $10,375 | $200.00 plus 15% | $4,238 | $8,475 | $20,750 | $400.00 plus 15% | $8,475 | ||
| $10,375 | $21,950 | $1,120.55 plus 25% | $10,375 | $20,750 | $43,900 | $2,241.25 plus 25% | $20,750 | ||
| $21,950 | - - - - - - - | $4,014.30 plus 28% | $21,950 | $43,900 | - - - - - - | $8,028.75 plus 28% | $43,900 | ||
| Table 7—ANNUAL DISTRIBUTION PERIOD | Table 8—DAILY or MISCELLANEOUS DISTRIBUTION PERIOD | ||||||||
| If the amount of the payment is: | The amount of income tax to withhold is: | If the amount of the payment is: | The amount of income tax to withhold is: | ||||||
| Not over | $8,950 | $0 | Not over | $34.40 | $0 | ||||
| Over— | But not over— | of excess over— | Over— | But not over— | of excess over— | ||||
| $8,950 | $16,950 | 10% | $8,950 | $34.40 | $65.20 | 10% | $34.40 | ||
| $16,950 | $41,500 | $800.00 plus 15% | $16,950 | $65.20 | $159.60 | $3.08 plus 15% | $65.20 | ||
| $41,500 | $87,800 | $4,482.50 plus 25% | $41,500 | $159.60 | $337.70 | $17.24 plus 25% | $159.60 | ||
| $87,800 | - - - - - - | $16,057.50 plus 28% | $87,800 | $337.70 | - - - - - - | $61.77 plus 28% | $337.70 | ||
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