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:
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At a horse racetrack, if you’ve made $600 in winnings
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At a slot machine or bingo game, if you win at least $1,200
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Keno wins of $1,500 or more (minus the amount you bet)
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Winnings from poker tournaments of $5,000 or more (minus the amount you bet or buy-in price)
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program.
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.
