Isn’t it exciting to win over a lottery, bingo or even on a slot game? Well, cashing out big bucks is actually a heart-stomping moment in winning gambling. But, have you ever think of the aftermath of it – the TAXES!
Definitely, gambling have an associated amount of taxes to be deducted to your winnings. To make it clear, fully taxable winnings actually comes from both cash and non-cash gambling.
Cash Winning Gambling
The cash winning is generally referred to the actual money received by the winning gambler after playing the following game:
- Casino Games
- Slot Machines
Non-cash Winning Gambling
Meanwhile, you can also win gambling through non-cash payouts. These are usually in the form of a car or a vacation. However, the fair market value (FMV) of it must be included especially when you will have to determine your income.
Ways to Report Gambling Winnings to IRS
Basically, you need to fill out the Form W-2G to report your winnings to the payer on the following:
- $600 or more for money value that is about 300 times the wager
- $1,200 or greater winnings in bingo and/or slot machines
- $1,500 or greater winnings in Keno
- Greater than $5,000 in winnings in poker games