| |
Prize Payouts
| |
|
The bells and whistles are sounding. The lights are flashing. Envious fellow gamblers, with what you’re sure are pasted smiles
on their faces, are giving you congratulatory slaps on the back. The theme song to Rocky is playing in your head. You imagine
climbing the capital stairs in Pittsburgh and raising your fists in victory. Why? Because you have finally joined an elite group,
a gambler who has won.
|
|
Don’t plan that vacation or new sports car just yet. Uncle Sam has his hand out. That’s right, you pay taxes on gambling winnings.
According to the government, income is income and U.S. citizens are obligated to report all of it to the IRS. Generally,
if you receive $600 or more in gambling winnings, the payer (casino) is required to issue you a Form W-2G. If you have won more
than $5,000, the payer may be required to withhold 27 percent of the proceeds for federal income tax. And don’t get any ideas
about your winnings offsetting your yearly losses. The IRS will know; you cannot deduct gambling losses that are more than your
winnings. If you regularly visit casinos or racetracks, you should keep an accurate diary or similar record of your winnings and
losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of
your winnings and losses.
You also might want to talk to a financial advisor if you want to put the money away for retirement or college education; the winnings
can start earning interest tax free with municipal bonds, or be put into a tax-deferred annuity or trust fund. Better yet, if you
have high-interest debt you should probably, first and foremost, look at paying off debt; that's going to provide you with your best return.
Don’t get too deflated; you still won money. You just have more to consider than long-lost friends and relatives suddenly
appearing on your doorstep.
Check out the Prize Payouts here. Click the banner below:
|
| |
|
|
Home
