If instead you cashed in the $10k first and completed the paperwork necessary to receive a W-2G, and then subsequently lost $8k back to the casino, you’d then receive a W-2G for $10k. So if you win $10k at a table, go catch some sleep, and come back and lose back $8k hours later, you’re now only up $2k and would potentially receive a W-2G on that amount only (if at all).

However, this is only on redeemed amounts. It’s safe to assume that somewhere around $10k (per transaction) is the limit where a casino will issue a W-2G regardless of how you won your money. You see, casinos have the authority to dictate whether they should issue form W-2G if a patron earns an amount that should have federal income taxes withheld. The last one is where gamblers might get tripped up. $1,200 or more in earnings from bingo or slot machines ģ. $1,500 or more in earnings from keno ORĤ. Any gambling winnings subject to federal income tax withholding.

Typically form W-2G is issued to taxpayers that win any amounts as follows:Ģ. Well, then the rules are a little different for reporting purposes. Remember, despite how you win or how much, it’s all subject to tax.īut let’s say instead you win your money from an electronic game such as a slot machine or keno. What’s better yet is that you can walk away from the table with all of your chips and redeem chips as you wish rather than all at once to prevent the casinos from having to report a large transaction. Most casinos traditionally do not complete issue form W-2G for earnings from table games. Let’s say you’re rolling the dice at the hottest craps table on the strip and you’re up big, $10k, those earnings are technically taxable. You know all the prizes people win on game shows? The fair market value is taxable to each winner. Winnings can include money earned as well as the fair market value of prizes such as cars, houses, and trips. Illegally earned money from gambling is also taxable but I’m not going to cover that in this article. Gambling winnings are any monies earned as a result of wagering in a casino or gambling establishment. Sadly, they’re right (and I know it) so I’m sharing my knowledge on how I plan to reduce my winnings.

The running joke among family and friends has been that if I win big I’ll have to pay taxes on my winnings. I’m writing this week’s post on a flight to Las Vegas, NV which is also my inspiration for my post.

Paying taxes on casino winnings