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Taxes in the U.S. are due in a few days. Do you have to report all your gambling winnings? Plus, there is new legislation coming that could change the way you report jackpots to the IRS.
The SLOT Act is a new bill that will raise reporting thresholds.
Death and taxes may be the only certainties in life. But this time of year you may be wondering more about gambling and taxes. As we approach the deadline to file personal income tax here in America, you may have some serious questions about how (and whether you have to) report your wins at the casino. Luckily, we have some friends who can help answer questions. Recently, the Super Bowl was played. Then we found ourselves in March Madness. Both of these events have a huge amount of sports betting associated with them, according to the American Gaming Association. With the surge of bracket contests and office pools, Jackson Hewitt Tax Services found that 62% of taxpayers are unclear on gambling and taxes.
What’s the only bad thing about winning a jackpot? The taxes! But now, the SLOT Act could help lessen some of that pain. Two Congressional Representatives, one from Nevada and the other from Pennsylvania, are pushing legislation to raise the reporting limit for jackpots. Currently, anyone who wins a jackpot at a slot machine or on video poker is required by the IRS to report amounts of $1,200 or more. However, the SLOT Act would raise that limit to match the rate of inflation, which would set the updated threshold at $5,000. Additionally, the legislation has a provision to keep up with the rate of inflation int he future. This most recent effort to raise to amount for reporting jackpot winnings has found the full support of the American Gaming Association, and surprisingly the IRS Advisory Council also agrees.
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