Winning money at the casino is great, but when tax time comes around, the state and federal governments will want their cut of the action. It is important to claim the amount of your winnings when you file your tax returns. If you fail to do so, you could be on the hook not only for the amount of the tax but for additional interest and penalties as well.
Ask the casino for a win/loss statement. If you have a player card with the casino, you might be able to print your own form from a kiosk on the floor. Otherwise, ask the player services representative for assistance.
Review the 1099 form you received from the casino. If you won a large jackpot during the past year, you should receive a 1099 showing the amount you won. Contact the casino where you won the jackpot if you did not get a 1099.
Subtract the amount of any gambling losses you incurred during the year. These losses can be used to offset the windfall from your jackpot winnings. Keeping track of the amount you play is a good strategy, and it can save you a great deal in taxes.
Review the income tax form for your state. Look for a line detailing gambling wins and losses. Some states have a separate line for gambling winnings, while others simply lump those amounts in on the "Other income" line. Review the instructions on the form to determine where to put your gambling proceeds.
Complete the rest of the tax return, including your wages, interest, capital gains and other income. Calculate the total amount you owe and send the payment to the address listed on the tax return.
Items you will need
- Win/loss statement
- State tax return
- 1099 form
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