Gambling Tax: How Much You Will Pay For Winning?
Uncle Sam wants a cut of everything, including your winnings at the casino or racetrack.
TurboTax Live allows you to connect with live tax experts and have everything done for you. It's a free online service.
Gambling tax is a tax on gambling.
Gambling winnings in the following amounts must be reported to the IRS by the payer. The payers must give the Social Security number and fill out IRS Form W2-G to report the full amount won. Not all gambling winings in amounts above are subject to IRS form W1- G.
Gambling tax is $600 at a horse track, $1,200 at slot machines, bingo games, or $5,000 at poker tournaments.
Even if you don't win a lot, you need to report your winnings at tax time. You also need also to declare any awards or prize money you won during the year. Gambling income plus job income equals your total income. If you itemize your deductions, then you can claim your losses up to the number of your gambling winings.
TurboTax Deluxe searches over 350 tax deductions and credits to get the maximum refund. It's free to start and you get $10 off when you file.
Gambling income is subject to state taxes. Some states charge a flat percentage, while others base the state tax on how much you won.
TurboTax will help you understand the tax laws and give you the credits and deductions you are eligible for. You can connect live via one-way video to a TurboTax Live tax expert with an average of 12 years of experience to get your tax questions answered.