How to Avoid Online, Internet and Sports Gambling Tax

So you won some money at gambling, and you want- Income taxes were withheld from your winnings
to know if you have to pay the Government, income- You won at least $600 or more and your winnings
taxes on your winnings. Well, the short answer to thatwere at least 300 times the amount of your bet
is yes, but there are some exceptions to the rule.- Your winnings were from a slot machine or bingo in
If you had gambling winnings you're required to reportthe amount of $1200 or more
them as other income on IRS Form 1040. The tax rate- Your winnings were from keno in the amount of
for online, internet and sports gambling winnings is the$1500 or more.
same as your regular income.How to deduct your losses from your winningsIn order
If you had gambling losses you are allowed to deductto avoid paying gambling tax you'll need to itemize your
what you lost, up to the amount that you've won. Youlosses on Schedule A tax form (itemized deductions).
are not allowed to deduct gambling losses that exceedAs with most itemized deductions you are required to
your winnings, and you are not allowed to carry-overkeep a record of gambling winnings and losses. You
your losses from one year to another.should keep the date, time, type, place, tickets, receipts
A Form W-2G is used to report gambling winningsand any other records you have as proof.
from, internet, online, casino, sports betting, horse racing,By keeping accurate records of your online, internet
lotteries, bingo and other legal gambling activities.and casino gambling you can pay less tax when you
You'll receive a Form W-2G if:win. When you pay less gambling tax, you win again!