Win Big at the Casino?

We all dream of winning big at the casino, the lottery, or some other contest or gambling exploit.  However, while winning big is nice, it can actually affect your tax liability in major ways. So, before you take a chance at gambling, keep the tax laws related to gambling winnings in mind.  

You Don’t Have to Report EVERY Win

There’s a little solace for gambling lovers in that you don’t necessarily have to report every penny you earn from gambling. In fact, whether or not you need to report varies based on how much you win and at what activity.

If you’re betting at a horse track, you only have to report it if you win $600 or more in cases where that is three times your bet.

For poker tournament participants, you only have to report $5,000 and over in winnings.

Slot machine and bingo enthusiasts only have to report winning $1,200 or more, and keno lovers only have to report winning $1,500 in more.

Taxes on Gambling Winnings

Paying taxes on your winnings probably doesn’t sound like much fun. Fortunately, though, you can often itemize your deductions and claim your losses, as well as use other “legal tricks” to reduce your tax liability.

A good accountant can be a great help to you with this, especially if you are someone who gambles and wins regularly.

Keep in mind, too, that, in addition to federal taxes, your state may tax your gambling income. The rules on this vary from state to state, so make sure you know what is required of you based on where you live. A good accountant can help you with paying and understanding state taxes too.

As long as you’re paying your taxes like you should and reporting your gambling income appropriately, you should be able to continue enjoying gambling for years to come.