by Jerry "Jet" Whittaker

Dec 13, 2006

Editorials on Gambling free tax

Gambling has experienced rapid growth in recent years. It has picked up pace in the past few years. Governments impose excise tax on gross revenue (i.e. on gambling casino games) or gross wager (i.e. lotteries). As the joint legalization and taxation probably conveys net welfare gains, the government doesn’t impose tax on some external costs (especially on gaming machines). Taxes on online gambling are regulated according to the related society’s perspective towards gambling. Limiting the availability of gambling opportunities, it would be consistent with differentially higher tax rates.

To avoid gambling tax:

The winner has to pay taxes on whatever he/she has won from his bets. There are particular forms, which the player has to fill up so as to notify the government that he/she has won some bets in the gambling games.  Tax rates for online, Internet gambling winnings are the same as your regular income.

If the player has lost some bets then he/she may deduct it upto their winnings but, cannot consider previous year’s losses to the succeeding years.

A particular form is used to report gambling winnings from any type of legal gambling activities.

The player receives a form if (approximations applicable):

Income taxes were withheld from your winnings Player has won at least $600 or more and winnings were at least 300 times the amount of your bet

Player’s winnings were from a slot machine or bingo in the amount of $1200 or more Player’s winnings were from keno in the amount of $1500 or more.

Deduction of Gambling taxes:

To avoid paying off the gambling taxes one has to itemize the winnings. The player has to keep a track of his/her winnings and losses. The track should be kept in a very systematic way as in with the details the date, time, type, place, tickets, receipts and any other records you have as proof. Keeping records can help you pay less tax. 

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