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Gambling Winnings

What Is Tax - Here are some answers
 
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Windfall of money - www.WhatisTax.orgGambling Winnings

You are not getting away with it, no matter what people tell you. The IRS is going to want their pound of flesh, and you have to pay up.

So here you go, you have to report it on the Form 1040.

If you go on a TV show and Oprah gives you a car, there is still a tax for which you are liable.

Most likely Oprah isn't going to pay your tax. The tax is figured on Fair Market Value.

You go to the corner store and buy a scratch ticket and win $20,000.

Good for you and good for your dear Uncle Sam.

He is getting his vig. You have to pay - Same old Form 1040 again.

If you manage to have a lucky day and win a raffle or go to the horses and win some dough on Big Nose in the third, you have to pay up.

Go to Vegas and win.


What happens in Vegas doesn't just stay in Vegas, you are going to have to cough up the scratch for your uncle. Form 1040 again.

It doesn't matter if it is a poker tournament or a slot machine your uncle expects you to kick his action up to him. Did I forget to say Form 1040 again?

If you win a trip to somewhere the same deal applies.
I don't have to mention that form, by now you get the idea.

In some gambling houses etc., you might be issued a Form W-2G - download it here to see what it is.

Even if you don't get one, you still are expected to pay off the IRS.

AHA! The good news! I saved it for last.

If you can itemize deductions and you have had winnings, then you can deduct losses.

You can't deduct more than you claim that you won on a return.