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Slot Machine Jackpot Tax

So do you have to pay a slot machine jackpot tax? Well, if you go into any casino and you'll be met by row upon row of slots machines. Choose one, pull up a stool, and take out your tokens. Now we're sure it's at this point the idea of big wins will cross your mind.

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Introduction: Slot Machine Jackpot Tax

Yeah, we know you’re sat there to pass some time and enjoy yourself. But in the back of your mind, there’s a tiny nagging voice that tells you about all the ways your life will change with just the turn of a reel and the drop of a coin. Every player dreams of hitting it big playing slots. But even if you do win, there’s always the slot machine jackpot tax considerations that’ll help bring you down to earth! That’s why it’s important to read the full Terms & Conditions even at the online jackpot sites.

Slot Machine Jackpot Tax: Hand Pay Jackpots

If you’ve never hit a jackpot, then let us tell you to have it all works. When the winning combination comes up on the reels, your slot machine will automatically lock-up. At this point, your brain will also lock up! Then music, lights, and bells will sound. Suddenly an attendant will appear at your elbow and you’ll awake to his inquiry as to what exactly you’ve won. Now on jackpots smaller than $5,000, then the attendant will verify that you actually hit the jackpot. He’ll then walk you through how to claim your winnings on your way to the cashier’s cage. If the jackpot is larger than this, then the second person you’ll probably see after the attendant is the casino’s own slot technician who will check that the machine is all good and functioning correctly.

A Big Jackpot

If it’s one of those massive progressive jackpots, then you’ll need to wait as they will send out a representative from the slots company operator, who’ll do all the verifying for them.You’ll have the option of taking the winnings as cash or a check. If the mounts are big, then it’s always going to be by check. Now in the case of large progressive payouts, then you can decide to take a lump sum or be paid out over a number of years. If you select the lump sum option, then you’ll receive only a % of your winnings. Yes, it’s a bit cheeky, but for example, if you were to receive $1 million over 25 annual installments, you’d get the whole sum. But if you choose to take it in one go, then you’d only get 60% of the total winnings.

Slot Machine Jackpot Tax: IRS Withholding

Keep in mind that all casinos are subject to federal taxes. The IRS though, only require a casino to report winnings above $1,200 on the slots and video poker games. But if you win is equal to or greater than $1,200, then you’ll receive with a tax form W-2G. This will list your name, address and social security number. Providing that you provide a social security number then the casino is not under any obligation to keep any withholding tax under $5,000 from you. But without it, they are required to keep back 28% of your winnings, as part of your slot machine jackpot tax.

If you don’t want the shock of a big tax payment coming out of your earnings on the next April when you file your normal taxes, then you can ask the casino to take out some withholding tax for you at the time of the win. Also, if you’re a more professional player, then you can actually offset your loses up to that point against your big win. The only kicker is that you must have a record of those losses either in the form of a diary or logbook.

Proper Identification

Without proper ID, the casino can refuse to pay out your winnings. Acceptable forms of this include, a photo ID such as a passport or driving license, or a military ID. If you don’t have an ID on your person, then you will be photographed. Don’t worry, the casino will hang onto your winnings until you return with one of the above official documents. Anyways, you should always carry a valid ID whenever you visit a casino. Remember that they can ask you to leave at any time without this.

One reason the casino checks your ID is that gambling is only legal proving you are old enough to gamble. Now, though the minimum age for gambling does vary from state to state, one thing that’s the same across all states is that you will not receive a cent of your winnings if you’re underage. It’s the law across all jurisdictions and has been tested in court. So don’t even go there!

Slot Machine Jackpot Tax: Plan Ahead

We know that most of you will be playing the slots for a bit of fun. But every day, all across the country, jackpots are being won. So, statistically speaking, that winner could also be you. There’s no harm in already having an idea of what you want to do with your winnings. Even before you actually win them. Even if you want to win the jackpot online.