Did you know you should report any gambling winnings on your income tax return? If you have winnings over a specific dollar amount then you will be required to claim those amounts on your tax return. The IRS wants to know just how lucky you are at poker, blackjack, slot machines, horse races and more. The institution must get your Social Security Number and let the IRS know you came into some extra money during the year. If your winnings are large enough then it might be smart to pay an estimated tax.
What if your winnings weren’t large enough to trigger a W-2G filing? Well at that point, it’s up to the taxpayer to be responsible to report the winnings to the IRS.
Remember, if you itemize your deductions then you may be able to deduct any gambling losses you faced during the year. If you have any questions, give us a call at 573-686-3053.