So you were the lucky one that struck it big? You lucky dog!! I'm the person that gets up $300, and ends up down $500 by the end of it... especially if everyone else is winning!
I know taxes aren't at the top of the list when you win big, but they sure jump up there when the casino hands you a W-2G. What to do next?!?!
Well, the IRS has come up with a handy list of tips to help you out;
Gambling income- Income from gambling includes winnings from the lottery, horse racing and casinos. It also includes cash and non-cash prizes. You must report the fair market value of non-cash prizes like cars and trips.
Payer tax form- If you win, the payer may give you a form W-2G, Certain Gambling Winnings. The payer also sends a copy of the W-2G to the IRS. The payer must issue the form based on the type of gambling, the amount you win and other factors. You’ll also get a form W-2G if the payer must withhold income tax from what you win.
How to report winnings- You normally report your winnings for the year on your tax return as “Other Income.” You must report all your gambling winnings as income. This is true even if you don’t get a Form W-2G.
How to deduct losses- You can deduct your gambling losses on Schedule A, Itemized Deductions. The total you can deduct, however, is limited to the amount of the gambling income you report on your return.
Keep gambling receipts- Keep records of your wins and losses. This means keeping items such as a gambling log or diary, receipts, statements or tickets.
If you have questions, please let us help you... no need to make something so great be not great!!