How To Pay Your Taxes On Casino Winnings

Casino games are a different way of spending some extra time and people take it as another way of fun and enjoyment. Many of them prefer going to land casinos to get the experience of a casino. But there are many people who prefer playing casino online. As people play casino for enjoyment and fun, they must want to win the game. But winning or loosing a casino game is not the end of the story. If you win a casino game then you need to pay taxes for that. It might raise a question about how to deal with this situation. Here is the solution of your problem.

•    After you win a certain qualifying amount in casino, you need to maintain a track record of it. It is a legal duty to report them to the IRS. They will collect the social security number and will finally send you an IRS form W-2G. Make sure that you provide a correct report of your winnings as IRS will already be aware of the list. If you try to hide anything then it will be illegal and in future you might need to face all the consequences.

•    As per the IRS rules, a casino will report all your winning records to the IRS. Depending on the amount you win, the casino might even refuse to give taxes form your payment. This entire process depends on the amount of money you have.

•    Even if you win a smaller amount, it’s your legal duty to inform this to the IRS. IRS might not catch hold of you initially but later on they will get to know and will create a problem for you.

•    Amount won from gambling, prizes and non cash prizes must be reported on the Form 1040 come tax season. 1040EZ forms should not be used to report gambling prizes.

•    Gambling losses should also be mentioned in the report. However those losses can not be reported that exceed the total gambling winnings.

•    Taxes withdrawn from your winnings shouldn’t be reported in the box 2 of W-2G form.

•    To avoid any kind of tension attach all forms of your gambling, including W-2G forms and other gambling documents.  
Following these simple steps will make tax paying easier for you. But following these steps are not so simple. There are different types of casino games like Lotteries, Racing, Slot machines, Bingo, Table games, Sports bar and each of them has different methods to keep the track.

Methods to keep tracks for these different games

•    Lotteries:  In case of lottery related games, keep a record of the unredeemed tickets, winning statements, W2g forms, payment slip and etc.

•    Racing:  Payment records, unredeemed tickets and the total amount collected from the race should be maintained.

•    Slot machines: In this case maintaining the record of the machine numbers, dates and timings of all winnings, receipts from the cashier, etc are very important.

•    Bingo: In case of this game the total amount collected from purchasing the tickets and other receipts related to the casino should be maintained.

•    Table games: Total number of the tables used for the game, credit card data etc. should be maintained. Most of the people have casino club’s card mentioning all the details including complementary foods, rooms, amount won, etc.

•    Sports bar: Here amount collected after winning tickets should be maintained including other details also related to the game.

Maintaining these track records will enable you to provide all the details of your casino game to the IRS during the tax payment on your winning. Paying the tax is a must and all the detailed documents must be presented to avoid any harassment in future.