Unreported winnings: Don’t fool the IRS It’s a known fact that casinos typically report some activity to the IRS — but not all. In craps, for example, the house alerts the IRS with a Currency Transaction Report (CTR) when a player buys in or cashes out for $10,000 or more in one day. And in slots, the casino must complete a W-2G form, which includes the winner’s name and Social Security number, for wins of $1,200 or more. Casinos file the same form for keno wins of $1,500 or more https://www.onlinecasinoluxembourg.com/testberichte/jackpotcity/.

Don’t waste your time begging casino employees not to fill out tax forms on you (either a CTR or a W-2G). U.S. laws require these forms, and trying to avoid them can land you in hot water. Casinos send the W-2G to Uncle Sam, and you get a copy at the end of the year.

Make sure you include a copy when you file your return. Hopeful gamblers may believe they only have to pay taxes on winnings that the casino reports to the IRS. Not true. All gambling winnings are subject to taxation, whether they come from a foreign country, the Internet, your neigh- bor’s poker game, a church bingo night, or a casino.

Many players ignore this law, however, figuring Big Brother won’t find out about their small wins. The IRS can conceivably obtain records from your favorite casino to deter- mine your yearly win or loss, although I’m not aware of any such cases. But remember this principle: Underpaying your taxes is a crime. So even if your chance of getting caught is small, it’s not worth the gamble.