In some cases, you might receive a 1099-MISC.

Gamblers must fill out Form 1040 or Form 1040-SR to complete this process 3. The IRS notes that all gambling winnings, including winnings that aren’t issued on a Form W-2G, are required to be reported. Regardless if a gambler receives a Form W-2G or not, Illinois gambling tax and federal tax rules stipulate that winnings of any amount must be reported. For instance, what if you won less than $600.00 betting on sports in Illinois and don’t receive a W-2G? There is often confusion regarding the Form W-2G thresholds. It is your responsibility to transfer the amount listed on Form W-2G to Form 1040 under Other Income. Generally, the property that issued the W-2G will fill out the required information before you receive it.

Winnings from a poker tournament have the highest threshold of $5000.00 before a W-2G Form is issued 3.

In keno, gamblers can expect to receive a Form W-2G if they win $1500.00 or more.

According to TaxSlayer, the threshold for receiving a Form W-2G is $1200.00 on a slot machine or bingo hit.

The IRS states that gambling establishments are generally required to issue a Form W-2G for winnings of more than $600.00 1.įor winnings greater than $5,000, the gambling establishment may be required to withhold 24% of the proceeds for federal income tax 2. In the United States, regardless if it is recreational gambling or not, taxes must be paid on winnings.

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