Taxes may not be the first thing that cross your mind when you are gambling, but unfortunately there is no escape from paying them on your winnings. The amount of money you pay in gambling taxes is directly related to your total annual income. Because your marginal rate is determined by all of your income sources and not just your salary, gambling winnings can push you into a different tax bracket than usual. However, this may be more or less than you actually pay depending on the rest of your income. A copy of this form will also be sent to the IRS by the party paying out your winnings notifying them of the details of your payment. To claim losses on your taxes, simply use line 16 of IRS form 1040, schedule A and list your losses. How Are Group Lottery Wins Taxed in Florida? So, a $5,000 win or more from a multi-state lottery is withheld at 24% and a W-2G will be sent to you on wins of $600 or more.
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