Does anyone know if online casinos tax you on your winnings come tax time?


I was wondering if these guys tax you on your winnings if it comes tax time and if there are anything I can do to not get taxed so heavyly

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2 Responses to “Does anyone know if online casinos tax you on your winnings come tax time?”

  1. DJ says:

    It is not the casinos who tax you – it is the government.

    If you itemized your deductions and you have the documentation to support your losses, then you can deduct your gambling losses to the extent of your gambling winnings – but if you won $10,000 and only have documentation to support $1,000 in losses, then you will be taxed on $9,000 income.

  2. samanthamcmanus52 says:

    Yes, you have to pay taxes on winnings, and yes, the casino or betting shop can deduct them.

    If the winnings are more than:
    - $600 at a horse track
    - $1200 at bingo or a slot machine
    - $1500 at keno
    - $5000 at poker

    Then the payer should report the SS number of the winner, and deduct 25% from the payout. They should also give you a Form W-2G, showing the total winnings and the amount deducted up front.

    All winnings need to be reported by you on From 1040 – check line 12, Other Income.

    You can offset your losses though – line 28, Other Miscellaneous Deductions, on Schedule A. You don’t have to meet a certain level of losses before you can claim, but you can only claim losses up to the total amount of your winnings.

    So if you lose $800 before winning $1000, you would still end up paying tax on $200 of winnings.

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