How to Reduce Tax Payments from Your Casino Winnings
How to reduce tax payments from Casino Winnings. Gambling industry in America is booming. Online casinos are also booming, but the IRS considers gambling winnings income, so they are fully taxable. The article will examine how you can reduce the tax from your profits. It will also explain how to get more money from online casinos. The author will explain the steps to do this.
How to reduce tax payments from Casino Winnings. Report Winnnings and losses separately to be eligible for deductions. You can only deduct the first $1000 of losses from your winnings. If you itemize by reporting your wins and loses separately, you can get the cost of your losses deducted by the IRS before they tax your remaining income.
How to reduce tax payments from your casino winnings? Keep good records of gaming wins and losses. Keep a diary or similar record of all your gambling activities. For instance, you can hold on to all wagering tickets, bank withdrawals, credit records, canceled checks, W-2G forms, statements of actual wins provided by the casinos, etc.
The IRS has mandated casinos to withhold 24% of all winnings more than $5,000 on a wager. However, winings from keno, slot machines, bingo and poker tournaments have special withholding rules.
Before you play, check with your state and local authorities about the rules regarding gambling winnings. You may be eligible for gambling loss deductions on your tax return. How to reduce tax payments from Casino Winnings.
How to reduce tax payments from your Casino Winnings. Online casino games are a way of making fast and easy money online.
This article explains how to reduce tax payments from your casino winnings.