You Get Taxed On Gambling Winnings?
Updated: Nov 4, 2021
Gambling is a common pastime for many people, but few are aware of the taxes that they owe on their winnings. If you win money, whether it's small or large amounts, the IRS expects to be paid their share. So what does this mean for gamblers?
It's All About How Much
Most individuals don't consider taxes while driving to a racetrack or casino, but what may appear to be nothing more than a chance to earn some additional cash has tax implications. Casino profits are typically singled out for special taxation by the federal and state governments.
It's critical that you understand the income reporting thresholds that the payer must meet. The payer must report winnings if the taxpayer wins the following amounts to the IRS:
At a horse racetrack, if you've made $600 in winnings
At a slot machine or bingo game, if you win at least $1,200
Keno wins of $1,500 or more (minus the amount you bet)
Winnings from poker tournaments of $5,000 or more (minus the amount you bet or buy-in price)
If You Owe Too Much
If at some point in time, you have found yourself stuck in the predicament in which the IRS claims that you owe them in back taxes, it can be bad news for you. Avoiding the IRS completely might lead to costly consequences. The first step in relieving a tax debt in which is too high, is seeking federal relief programs. Fortunately for many Americans, there's a relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program. Our clients are referred to our Fresh Start Program in order to avoid bankruptcy, acquire debt relief, and settle their debts in a quick manner. Let us give you a helping hand today!
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