One thing most tourists to Las Vegas forget to think about is taxation on gambling winnings.
Here’s everything you need to know if you’re one of the lucky ones to walk away with a tidy sum of money.
Taxation on gambling winnings in Las Vegas depends on a number of variables.
For instance, the Internal Revenue Service (IRS) demands every casino in Las Vegas to withhold federal taxes if you win over a specific amount.
Generally speaking, taxation is applied when the winnings exceed $600 or are at least 300 times the amount of the wager you initially placed. However, the latter doesn’t usually apply to slot machines, bingo or keno.
According to the IRS Information Reporting rules, a casino will withhold 28% as income tax if you can’t provide a documented TIN (Taxpayer Identification Number) – otherwise known as your Social Security Number.
Although in some casinos, this fee will apply regardless of whether you provide these details or not.
For foreign gamblers, the withholding tax is 30% and 25% for US residents if the winnings are over $5,000.
For larger winnings, you’ll usually receive an IRS Form W-2G, which will outline the amount you won and the figure deducted for taxation.
Casinos in Las Vegas are required to report gambling winnings for bingo games and slot machine winnings which exceed $1,200, $1,500 for a keno game and $600 at a track race.
However, as a casino doesn’t know how much you initially put down on table games, they can’t determine how much you won/profited. Therefore, they can’t withhold tax from your winnings if it isn’t higher than $5,000.
Daryl Charman is a Las Vegas expert, bringing his Sin City knowledge to our loyal readers. Whether you need to know if your Vegas wedding is legally bound, which country has banned gambling or how to cheat the casino industry, Daryl has a wealth of knowledge in the gaming industry.
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