It’s the same when you bet at a casino, racetrack, sports betting parlor, or with any other legally operating gaming business.
You’ll also need to attach the W-2G form to your return. Include the amount withheld on your 1040 next year as federal income tax withheld. Under penalty of perjury, you’ll also need to sign the W-2G stating that the information listed on the form is correct. The amount withheld will be listed on Box 4 of the W-2G form you will receive. Winnings from keno, bingo, slot machines, and poker tournaments are subject to special withholding rules. Generally, the IRS requires payers to withhold 24% of your winnings for income taxes if you win more than $5,000 on a bet and the payout is at least 300 times the amount of your wager. Are You a Lawyer? Grow Your Practice What Are the Tax Implications of Gambling Earnings?Īny earnings won from gambling, betting, and playing lotteries are taxable income, even if that income is from illegal activity.
