If winnings meet or exceed the above payouts, the casino will withhold up to 25 percent of your winnings in taxes before disbursing the final amount. $5,000 or more in poker tournament winnings $1,200 or more from a slot machine or bingo game No matter the amount, all winnings must be reported on the next tax return if the earnings exceed these wins." For certain games and for larger winnings, winners will need to file IRS Form W2-G. In addition to state tax, the IRS also taxes gambling winnings. "Since each state has its own set of regulations for gambling taxes, be sure to pay close attention to the local requirements before filing your next tax return. Note that many casinos will pay the entire amount up front.Īll winnings specifically from poker tournaments and slot machines - are taxable at the federal level, and some may be taxable at the state level, too. Winners will be given up to 90 days to decide if they want the lump sum or the annuity. Another way is through an annuity, wherein the money you've won is paid out in installments. The first, of course, is the lump sum payment. There are several different ways you can be paid your winnings. However, if the win is larger that $25,000, your options change depending upon the casino you are playing at. You will have the option of being paid by cash or check. Let's say, for example, you win $25,000 or less on a slot machine.
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