How To Handle Gambling Winnings
- How To Handle Canadian Gambling Winnings
- How To Handle Gambling Winnings From Another State
- Gambling Winnings Reporting
How Much State & Federal Tax Is Withheld on Casino Winnings? If you are lucky enough to win when you go to the casino, you will not necessarily have to report the winnings on your tax returns. Some Gambling Winnings Must Be Reported to the IRS By the House. Casinos, race tracks, state lotteries, bingo halls and other gambling establishments located in the United States are required to tell the IRS if you win more than a specified dollar amount by filing a tax form called Form W2-G with the IRS. The advice you receive should include how to invest your winnings, which means you will want to hire a financial planner. It should also include personal advice on how best to handle the win psychologically and legal advice about your new status as a multimillionaire.
If you’re like most people, you dread tax season each year. There’s nothing like the anxiety of wondering if you’re going to owe the IRS. Add to that the stress of figuring out what informationyou’ll need to include and whether it’s coming by mail or electronic delivery, then scheduling time to meet with your tax advisor. Not to mention the added fear of wondering if you’re going tomiss something that will result in penalties and interest, or, even worse, an audit.
All of this can combine to create a real headache. Read on to learn some of the basics regarding your gambling winnings and losses and how they affect your individual income tax return. Evenpossessing some general knowledge on the issue can go a long way to reduce stress. Keep in mind that this material is provided for general awareness. For tax planning and advice and more detailedinformation, check out the links provided throughout this post.
It’s also important to note that the information provided here is for casual gamblers only. Professional gamblers will file Schedule C to report winnings and losses from gambling, and that isoutside the scope of this discussion. Most gamblers will have a hard time classifying themselves as professionals, and there may be some reasons why it would not be considered advantageous to doso.
Without any further delay, let’s take a look at 7 things you should know about gambling and your US individual income tax return.
How To Handle Canadian Gambling Winnings
November 01, 2017
Have you recently won some cash at the casino or racetrack? Congratulations! While it is very exciting, keep in mind there are tax implications and you should be prepared to pay federal, state and local income taxes on the winnings.
How To Handle Gambling Winnings From Another State
You can anticipate that the casino or other party that provides the payout to give or send you a Form W-2G. The information reported on this federal form includes the date you won, the reportable winnings, type of wager, federal and state taxes withheld and other details about the transaction.
You will file a W-2G if you won money from any of the following sources (please note, the list is not exhaustive):
Gambling Winnings Reporting
- Horse/dog track or off track betting
- Jai-alai
- State-conducted lottery
- Keno • Bingo
- Slot machines
- Poker winnings
- Any other type of gambling winnings
Keep in mind, even if you win money at a charity event that is hosted by a church or other type of non-profit organization, those winnings are taxable. If you paid money to participate in the event, such as purchased cards for a game of bingo at your church, you cannot claim the funds you spent as a donation to a non-profit organization when you file your income taxes.
If you find yourself on the losing end of a game of chance, you may wonder if you can report a gambling loss on your tax return. Generally, it is not allowable, but there are exceptions. It is advisable that you consult with a tax professional if you find yourself in such a situation or have questions.
For rules, laws and other information pertaining to gaming in Indiana, visit the Indiana Gaming Commission website at http://www.in.gov/igc/.