Tax Tips for Gamblers
There are three casinos within a twenty mile radius of Hiawatha. A majority of citizens in our area have visited one of these casinos, and some have even managed to win big. Regardless of how often you gamble or the size of your winnings, there are some things to consider to prevent issues with the IRS and your tax return.
If you win at least $1,200 from a slot machine, $1,500 from a keno game, $5,000 from a poker tournament, or $600 from any other type of wager, the casino will issue you a form W-2G. This form contains information from your win such as the amount, when it was won, any tax withholding, and other identifying information. This form, just like other many other forms, are submitted to the IRS.
To prevent any issues with your tax return you will want to ensure that you have all your W-2Gs. The IRS already has record of your winnings from form W-2G and will be looking to match this information to your tax return. You can offset gambling winnings against gambling losses you incurred in the same tax year if you are able to itemized your return.