Your Jackpot And The IRS-They Share Your Joy!

shutterstock_310127303Wow! You finally did it. You hit a jackpot, a big one. You can’t believe what you see, flashing lights, sirens, and $2,500 win flashing on the screen. Minutes later a member of the casino staff comes over and congratulates you.

After you calm down, you show the staff member your ID. This is to prove that you are of legal age and are who you say you are. If you don’t have proper and current ID, you will not be paid until you can retrieve it. They will hold your win until such time.

You won a jackpot. This is the great news. Now for the bad news, maybe the “you-didn’t-know” news. The casino will bring you a check for your win plus a 1099G so that the IRS will be able to celebrate with you.

The law is that if you win $1200 or more, you will receive a 1099G and the casino will share this information with the IRS. Whether or not you receive a 1099G, the IRS requires you to report all of your gambling winnings, minus losses, on your tax returns. There is record keeping required. If you think the IRS is going to take your word for it, they won’t.

If you are a regular gambler, and are not aware of these reporting rules, we recommend for your own financial security, to check with a CPA or tax professional. The IRS has a stable full of penalties that they can inflict for noncompliance.

Las Vegas Review Journal reported on this topic: Learn More Here



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