Taxes on Your Gambling Winnings – You Owe Uncle Sam a Piece No Matter How Much You Won

When you play at a casino, you can win a few dollars here and there and walk away with more dollars than you brought with you. It can be as little as $ 20 or as much as $ 1,000. When collecting, you were never presented with a form to report your earnings to the IRS. If you think you are home free, think again. As a US citizen, you owe Uncle Sam a share of the stock regardless of the amount. Many players think that just because they weren’t given a tax form, they are home for free. Not so.

So what is reported to the IRS? Larger amounts won at gambling establishments such as casinos, lottery retailers, racetracks, and off-court gambling halls. They will issue a W-2G form, one copy for you and one for the IRS. Here are some details:

Machine games

$ 1,200 or more won on a slot machine, video poker, video keno, video blackjack, etc. This only applies to a single jackpot payment amount. Accumulated credits are earnings ยูฟ่าเบท  on the credit meter and do not count.

$ 1,200 or more won in a live bingo game will also trigger a W-2G, and $ 1,500 or more in a live keno game (less your bet amounts).

The casino will not withhold any tax on prize gambling in the range of $ 1,200 to $ 1,500 as long as you present valid photo identification and a social security number. If you do not provide this information, 28% will be withheld.

Live board games

Live table game winnings are not reported in a W-2G, except if a very large prize amount is offered for a small bet, such as a dollar bet for a chance on a progressive table jackpot, where the winnings are Odds of winning are over 300/1 and the payout is over $ 600. For example, Caribbean Stud offers a huge progressive jackpot for betting just $ 1, if you’re lucky enough to land a royal flush.

If you win $ 600 or more on any other gambling game, such as horse racing, dog racing, or sports betting, and the amount is at least 300 times your stake minus your stake, the establishment will award you a W-2G. . If your winnings exceed $ 5,000 and the amount is more than 300 times your bet, 25% will be held. The same percentage withholding also applies to any cash prizes of $ 5,000 or more in poker tournaments or other card tournaments minus the buy-in amount.

Winnings in state lottery games like lottery, numbers, scratch cards, etc. up to $ 600 can be collected at your local retailer. More and you’ll have to visit your community’s main lottery office, where a W-2G also awaits you. This information is from the New York lottery. Other states may have different rules.

Winnings in Daily Fantasy Sports (DFS) contests at this time are considered games of skill. DFS sites will issue a 1099-MISC, not a W-2G for earnings of $ 600 or more.

Video Lottery Terminals (VLT)

$ 600 or more in winnings from any Class II Video Lottery Terminal game will also invite a W-2G. This includes any winnings on machines in jurisdictions that are operated by a state lottery. For example, New York State has nine VLT racetracks that are pseudo slot machines and video poker machines.

Deductions

The good news in all of this is that gambling losses are tax deductible, but only up to the amount of your winnings, and only if you itemize the deductions on your tax return.

The IRS wants to make sure that you have indeed lost what you claim to have lost, so a record of all your losses is required. Profit and loss statements are available at most major casinos at the end of the year, provided you have used your player club card when playing the machines. Save those who lose scratch tickets, Lotto, Powerball and Mega-Millions tickets, daily numbers, Quick Draw, OTB, etc.

For losses in Daily Fantasy Sports contests, the position of the IRS at this time is unclear. Due to the skill factor, your earnings are in the hobby category. Therefore, the losses would not be deductible, although this situation could change at any time.

You do not need to record fines on your tax return, but they may be necessary if you are audited.