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Whenever you earn a “qualifying amount” in a casino, they are legally required to report it to the IRS. Therefore, they will collect your social security number and submit an IRS W-2G form. As such, be sure to report these gains on your tax returns, because the IRS obviously already knows them. Do not make the mistake of trying to avoid taxes by providing the casino with incorrect information as this is very illegal and can cause many problems.
According to the IRS, a casino will need to report your winnings to the IRS if you win: $ 600 or more on a casino or horse track, $ 1,200 or more on a bingo game, or $ 1,500 or more on a game. from keno casino online. Depending on your winnings, the casino may even withhold taxes from your payout.
Although minor earnings are not automatically reported to the IRS, it is still your legal duty to report them. Although the IRS may not catch you in the act if you do not report these minor winnings once or twice, they may become suspicious if you report game winnings frequently, but only those that are verified by a W-2G form.
You must report your non-cash winnings, prizes, or prizes in the game in fiscal year 1040 of Form 1040. They will need to be placed on line 21 with “other revenue”. Forms 1040EZ cannot be used to report gambling winnings.
In addition to reporting your gambling winnings, you will also want to deduct your gambling losses. However, you cannot report game losses that exceed your total gaming winnings. When you deduct losses, you do so on Schedule A on IRS Form 1040 as a discriminated deduction.
It is useful and smart to keep a complete record of your gaming activities, including gains and losses, as well as where the games were played. There are several reasons why doing this is a good idea, including, but not limited to, the possibility of an IRS audit. This will also make things easier when you need to prepare your return next April.
Taxes withheld from your earnings must also be reported in Box 2 of Form W-2G that you receive by mail. Be sure to enter these amounts on Form 1040 in the Total Payments section.
Attach All Forms
To satisfy the IRS, be sure to attach all forms relating to your gambling activity to your tax return. This includes your W-2Gs or any other gambling-related tax documents.
You might think that people who get free hotel rooms and concert tickets from places where they play are very lucky. However, these “comps” do not come without a price. All of them are considered earned by the IRS and are subject to the same taxes.