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IRS Rolls Out New Gambling Regs

(posted: May 16th, 2017)


Did you know?

When you win big at a casino, or other gaming establishment, your winnings are taxable.

The IRS requires that you pay tax on your winnings, as reported by the casino.

Recently, the IRS issued new, final reporting regulations for payments from bingo, keno and slot machine winnings.

New Rules

You must pay tax on gambling winnings, but you can offset the tax by substantiating losses up to the amount of the winnings.

The IRS has retained the prior required reporting levels of $1,200 for bingo games and slot machines and $1,500 from keno. Payments to winners are reported by the payee (casino or other gambling establishment) on Form W-2G, "Certain Gambling Winnings".

Among other requirements, Form W-2G must include the name, address and taxpayer identification number of the recipient and a general description of two forms of identification used to verify this information.

The new final regulations contain the following clarifications:

  • Reportable winnings for bingo means winnings of $1,200 or more from one bingo game without reduction for the amount wagered. All winnings received from all wagers made during one bingo game are combined.
  • Reportable winnings for keno means winnings of $1,500 or more from one keno game reduced by the amount wagered on the same keno game. All winnings received from all wagers made during one keno game are combined.
  • Reportable winnings for slot machines means winnings of $1,200 or more from one slot machine play without reduction for the amount wagered.

When should you expect to see Form W-2G?
The new final regs are generally effective for gambling winnings from bingo, keno, and slot machines reported after 2016.

If you have questions or concerns about gambling winnings, please Contact Us.

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