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
Tags: Online Casinos, Tax Time
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
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.
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.