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If you have an upcoming trip to Las Vegas, or any casino for that matter, chances are you've had dreams of hitting a big jackpot. After all, what would be sweeter than funding your entire trip, or early retirement, with one lucky hit. What most people fail to think about, however, are the tax implications caused by a big slot win.
Our intent is to give gamblers a high level overview of how federal taxes work when it comes to slot jackpots in Vegas, and around the country. Keep in mind, we're Vegas aficionados, not accountants. Seek professional help if you need real world or situational advice.
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When do you need to pay taxes on gambling wins?
This answer is simple: anytime you win. That goes for any type of gambling income you earn whether on the slots, table games, lottery tickets, horse racing, or a friendly bet with your neighbor Jim. If you profited, even $5, the IRS wants their cut. Gambling wins are added to your income and taxes are paid at your marginal rate. There is not a special gambling income tax rate; It is simply treated as income, just like that earned at your day job.
Tax professionals often recommend keeping a log of gambling activity to include date, games played, and profit/loss over the session so that you have a record of your activity over the year.
Although the IRS wants a cut of ANY gambling win (whether big enough to generate a tax form or not), most recreational gamblers don't keep a detailed record of their wins/losses for tax purposes (tisk, tisk, tisk). Most are more concerned about wins large enough to trigger a mandatory W2-G. A W2-G is a federal tax form notating your income from gambling activity that the casino generates at certain win thresholds (discussed below) and is reported to the IRS.
Since the generated W2-G detailing the win is sent to the IRS, players would be risking an audit if the income isn't declared on that year's tax return.
Keep in mind, gambling wins can be offset on your federal taxes by losses incurred over the year, but only if you itemize your deductions. Since the standard deduction was recently increased significantly, fewer people itemize making it a challenge for some to avoid paying taxes on their win. While losses can be used to offset your big wins, you can only deduct losses up to the amount you reported as won.
How much do you have to win to trigger a W2-G at the casino?
Depends on the game. The IRS has set the following guidelines for common games:
- $1,200 bingo or slot win (not reduced by the wager).
- $1,500 or more from a keno game (reduced by the wager).
- $5,000 or more from a poker tournament (reduced by the buy-in).
- $600 or more at the horse track if your win is 300x greater than your original bet.
Will the casino withhold money from your slot jackpot?
The casino is not required to withhold taxes from your big win provided you furnish a correct taxpayer identification number. Instead, you will simply pay taxes on that income at the end of the year. Many casinos, however, will withhold a percentage of your win if requested to help you avoid a big tax surprise at the end of the year.
If you are unable to provide a tax identification number (social security number), your jackpot will be withheld at a rate of 24% (reduced from 28% as of 2018).
Foreign gamblers that hit jackpots are always withheld at a rate of 30% although some nationals of select countries are able to recoup all or a portion of that withholding.
On a separate note, always carry an I.D. as your jackpot will not be paid unless you can supply one.
Will a W2-G generate as a result of a large table game win?
Nope. Although income earned on games like Blackjack, Roulette, Craps, etc. is taxable, there is no win threshold that would trigger a W2-G, nor will your win be proactively reported to the IRS. The exception to this would be if you hit a side bet or progressive jackpot that is 300x the bet made.
Could the slot win threshold for generating a W2-G be increased?
The original threshold of $1,200 was established in 1977 and has not been adjusted for inflation since. U.S. Representatives Darin LaHood (R-ILL) and Dina Titus (D-NV) recently pushed the Department of the Treasury to increase the win amount needed to trigger a W2-G to $5,000 from the current $1,200 benchmark. Titus and LaHood point out that the amount of $1,200+ jackpots have increased over time and that the current threshold creates an undue burden on casinos which takes the form of machines sitting locked up while excessive paperwork is completed.
This request to increase the threshold comes just a few years after the IRS considered lowering it to $600. At that rate, slot players would spend more time filling out paperwork than hitting spin.
At the end of the day, if you are worrying about taxes, something good has happened. Congrats! Let's hope that in the coming years, the threshold for triggering a W2-G on slot wins can be increased to lessen the burden on both players and casinos alike.
If you are curious about learning more about taxes for gambling, we recommend checking out Jean Scott's 'Tax Help for Gamblers' (available on Amazon) which dives into the weeds of how the federal government as well as all 50 states handle gambling income.
See Also:Staying Downtown Las Vegas vs. on the Strip – We compare your options.
The jackpot is what each player plays for in an online casino and at Phone Vegas Casino we offer a whopping amount as the jackpot for most of the games. If you play well, you will sure reach the jackpot soon at our online casino. It is a word used popularly across different casinos and is the main aim of all. Spin your luck and fix your bet with the different variants of casino games to see what the fortune has for you.
Keep in mind, gambling wins can be offset on your federal taxes by losses incurred over the year, but only if you itemize your deductions. Since the standard deduction was recently increased significantly, fewer people itemize making it a challenge for some to avoid paying taxes on their win. While losses can be used to offset your big wins, you can only deduct losses up to the amount you reported as won.
How much do you have to win to trigger a W2-G at the casino?
Depends on the game. The IRS has set the following guidelines for common games:
- $1,200 bingo or slot win (not reduced by the wager).
- $1,500 or more from a keno game (reduced by the wager).
- $5,000 or more from a poker tournament (reduced by the buy-in).
- $600 or more at the horse track if your win is 300x greater than your original bet.
Will the casino withhold money from your slot jackpot?
The casino is not required to withhold taxes from your big win provided you furnish a correct taxpayer identification number. Instead, you will simply pay taxes on that income at the end of the year. Many casinos, however, will withhold a percentage of your win if requested to help you avoid a big tax surprise at the end of the year.
If you are unable to provide a tax identification number (social security number), your jackpot will be withheld at a rate of 24% (reduced from 28% as of 2018).
Foreign gamblers that hit jackpots are always withheld at a rate of 30% although some nationals of select countries are able to recoup all or a portion of that withholding.
On a separate note, always carry an I.D. as your jackpot will not be paid unless you can supply one.
Will a W2-G generate as a result of a large table game win?
Nope. Although income earned on games like Blackjack, Roulette, Craps, etc. is taxable, there is no win threshold that would trigger a W2-G, nor will your win be proactively reported to the IRS. The exception to this would be if you hit a side bet or progressive jackpot that is 300x the bet made.
Could the slot win threshold for generating a W2-G be increased?
The original threshold of $1,200 was established in 1977 and has not been adjusted for inflation since. U.S. Representatives Darin LaHood (R-ILL) and Dina Titus (D-NV) recently pushed the Department of the Treasury to increase the win amount needed to trigger a W2-G to $5,000 from the current $1,200 benchmark. Titus and LaHood point out that the amount of $1,200+ jackpots have increased over time and that the current threshold creates an undue burden on casinos which takes the form of machines sitting locked up while excessive paperwork is completed.
This request to increase the threshold comes just a few years after the IRS considered lowering it to $600. At that rate, slot players would spend more time filling out paperwork than hitting spin.
At the end of the day, if you are worrying about taxes, something good has happened. Congrats! Let's hope that in the coming years, the threshold for triggering a W2-G on slot wins can be increased to lessen the burden on both players and casinos alike.
If you are curious about learning more about taxes for gambling, we recommend checking out Jean Scott's 'Tax Help for Gamblers' (available on Amazon) which dives into the weeds of how the federal government as well as all 50 states handle gambling income.
See Also:Staying Downtown Las Vegas vs. on the Strip – We compare your options.
The jackpot is what each player plays for in an online casino and at Phone Vegas Casino we offer a whopping amount as the jackpot for most of the games. If you play well, you will sure reach the jackpot soon at our online casino. It is a word used popularly across different casinos and is the main aim of all. Spin your luck and fix your bet with the different variants of casino games to see what the fortune has for you.
The amount that few players can get hold of is what each player persistently plays for. The type and amount of Jackpot may differ with each game, but nonetheless, it is what keeps the players hooked. There are two common types of jackpot you may have come across in an online casino, they are progressive and non-progressive.
The progressive jackpot's amount is not fixed and it increases with each gameplay, the non-progressive jackpot, on the other hand, remains constant.Most of the online casino games have a progressive jackpot; hence it is not an easy task to win the jackpot with most of the casino games. The variable winning amount is a challenge to the players to keep playing better. Every game has different gameplay and accordingly there are different ways to reach the jackpot amount.
The Big Wins at Phone Vegas Mobile Casino
Slot Jackpots In Vegas
At Phone Vegas Casino, we have a list of jackpot games, raise yourself up and try your luck with them and you may turn to be the fortunate one. The progressive jackpot is determined by the casino and hence increases accordingly. Make sure you have your luck by your side while aiming for the jackpot amount.
Usually, to win the jackpot in most of the games, you need to bet your entire wager mostly using the 'bet max' button. At Phone Vegas Mobile Casino, we have for our players the best jackpots with excellent gameplay. Are roulette tables rigged. To win the jackpot amount play the games at our casino with all might.
Jackpots In Vegas 2020
We have for you the big win games to indulge in, beautifully themed games and engaging gameplays.The different slot games have beautiful jackpots worth your time so make sure you check through the different slots and the jackpot they offer and let good times roll at Phone Vegas Casino. Play to your heart's content and take home the lucrative jackpot at our casino.
