Question

While on vacation in las vegas jennifer, who is from utah, wins a progressive jackpot playing cards worth $15,875 at the casino royale. what implication does she encounter when she goes to collect her prize?

Answer 1

Answer:

Depending on what game Jennifer played, she might have to pay taxes. If Jessica won the money playing [email protected]@ck or [email protected]@[email protected] she doesn't need to pay taxes.

Explanation:

The IRS requires casinos in Las Vegas to withhold 25% of total gambling winnings (or 30% if the gambler is from a foreign country). When a casino withholds taxes, they will provide you with IRS Form W-2G.

You must remember to keep Form W-2G so you can report it on your IRS Form 1040 tax return at the end of the year, to avoid being taxed twice.

But winnings from some table games are not taxed, e.g. [email protected]@ck, [email protected]@[email protected], [email protected], and roulette are not taxed.