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Tag Archive for Gambling Tax

Red Flags For A Casino Winners To Look For A Different Service Provider Of U.S. Tax Withholding Refund

Paid tax professionals aren’t permitted to endorse or otherwise negotiate a refund check issued to a taxpayer. This is true, even if the taxpayer requests their refund be directed into the paid tax professional’s bank account or in his/her name. Failure to comply could result in an Inter REvenue Code, Section 6695(f) penalty of $510 for each tax return with no maximum penalty amount and no reasonable cause exceptions.

This brings up the point regarding companies who advertise refunds of withholding of U.S. gambling winnings and insist that the refund go directly to their office.

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Gambling Winnings And Losses And Dealing With Taxes

Living in Las Vegas, a question I get all the time is “How do I deal with winning and taxes?”  First off, congratulations on winning!  The odds were definitely in your favor.  Second, reporting gambling income so much easier than one would think.  Here on some tips if you are lucky enough to win:

1. Winnings may or may not be reported on Form W-2G, but even if it is not, all winnings must be reported as “other income” on the 1040.

2. Good News! Losses can be deducted up to the amount of winnings. Bad news: Losses are reported on your Schedule A so you have to be able to itemize your deductions.

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