How Are Casino Winnings Taxed?
Tax season is fast approaching. For some, tax season is an exciting time that will end in a nice check coming their way, while for others tax season just means a mountain of stress. As you go through your tax documents, it is important to remember gambling winnings. Anything you win gambling at a casino or otherwise is classified as taxable, so if you frequently gamble it is important to understand how casino winnings are taxed. Golden Acorn Casino provides the details you need about how your casino winnings are taxed, but if you have further questions call (619) 938-6000.
What Kind of Gambling Income is Taxable?
In most situations, your gambling income is taxable, regardless of how you won the money. This includes both cash won as well as prizes and vouchers. According to United States law, gambling winners are required to include all gambling winnings when they file their federal income tax.
What Form is Used to Report Gambling Winnings?
In order to report your gambling winnings on a federal tax return, you should receive a W-2G form. Request a W-2G form, but if for some reason you never receive the form you are still required to report your gambling winnings.
How Much are Taxes on Casino Winnings?
In most cases, your casino winnings are subject to a 25% flat tax. If you win a non-cash prize, such as an all-expense paid vacation or a new car, you are required to pay taxes on the standard market value of your prize. However, there are some exceptions that can be subject to different gambling taxes. Winnings over $5,000 are subject to income tax, and in certain situations, a 28% withholding is asked for in lieu of the standard 25% tax rate.
Keep a Record of Your Gambling
In order to make sure all the information presented is accurate, keep a detailed record of every time you gamble. The IRS requires this action, asking you to keep any gambling related documents such as tickets, statements, receipts, and payment slips. You may also be given a Form W-2G and Form 5754, which should be kept for your records. The easiest way to keep track of your gambling wins and losses is to keep a gambling diary, in which you record the date, establishment, type of gambling you participate in, names of people you gambled with, and the amount you won or lost.
Rack Up Big Gambling Winnings at Golden Acorn Casino
Paying taxes on casino winnings is one problem most are perfectly fine with because that must mean you won big at the casino! At Golden Acorn Casino in Southern California, you will find the perfect place to hit the jackpot, with a vast array of slot machines, table games, and more. Golden Acorn Casino is conveniently located near San Diego and Los Angeles, making for the perfect getaway to win big. If you walk away from Golden Acorn Casino a winner and are interested in tax documentation, we are more than happy to answer any and all questions you may have. If you are interested in learning more, contact Golden Acorn Casino today by calling (619) 938-6000.
Disclaimer: This text is purely a perspective based on research using the following source: