Slot Machines and Bingo– If you win more than $1,200 on either of these gaming machines or a jackpot at a local old-school bingo parlor, then that money is taxable. Sports Wagers– Any amounts won exceeding $600 are considered taxable, especially if the funds make up 300 times your initial bet. Here is a general breakdown to keep in mind when at the casino or racetrack: These amounts vary, based on how the money is won. The IRS only requires people to pay taxes on a certain amount of the money that they win through gambling. They will not hesitate to collect what is owed to them and more, should you profit from gambling winnings. But the downside that many forget in the heat of the moment, is that you owe taxes on those winnings, and if those taxes are not disclosed on your annual tax return or paid in full, you could end up with plenty of problems with the IRS.

Yes, it is undeniably exciting to win and stash a little extra cash in your pocket. Winning money at a casino, sportsbook, or via the lottery is a rollercoaster ride with its inevitable up and downs.

Taxes on slot machine winnings