2006-06-14 13:32:47 · 6 answers · asked by Anonymous in Politics & Government ➔ Government
Yes, gambling winnings are fully taxable. Here's info from the IRS:
Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income.
A payer is required to issue you a Form W-2G (PDF) if you receive certain gambling winnings or if you have any gambling winnings subject to Federal income tax withholding. All gambling winnings must be reported irrespective as to whether any portion thereof is subject to withholding. in addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax.
You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A (PDF). However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.
2006-06-14 13:37:23 · answer #1 · answered by jibba.jabba 5 · 1⤊ 0⤋
Yes, but you can also report your losses as well. Most of us rarley ever win more than we lose, so its not really an issue. if you win big, to the point where the casino has you sign out for the cash, make sure you keep a running tab of your losses so you can account for the deduction.
Keep your race stubs, and sporting bet stubs to show this and also ask a casino for the records if you are playing on a frequent player card.
2006-06-14 13:39:58 · answer #2 · answered by saturdaynightbob 1 · 0⤊ 0⤋
If you are a resident of the US you have to report your winnings but don't forget to deduct all your losses as long as you have records of them like ATM withdrawal slips or cash checks for the right timeframe. Residents of other countries don't have to report their winnings.
2006-06-14 13:39:29 · answer #3 · answered by Roger K 3 · 0⤊ 0⤋
In Nevada, you must report any winnings over $1199.
2006-06-14 14:54:23 · answer #4 · answered by correrafan 7 · 0⤊ 0⤋
depends how much, usually when you cash out it's anything over $10,000 that you have to fill out the forms on the spot
2006-06-14 13:36:32 · answer #5 · answered by ben12855 2 · 0⤊ 0⤋
Yes you do.
2006-06-14 13:35:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋