If you are under the impression that after winning a good fortune, the entire amount of money is all yours, then you are very wrong. The law of every country states that the winners have to pay a certain amount of their money as tax to the government.
Gambling of any form – horse racing, casinos, car racing, online sports-picks bonus , slots, bingos etc requires the winner to pay tax. Generally, if you win more than six hundred dollars in any gambling game you have to pay tax. The casino officials will give you a form named Form W -2G, which the player has to fill up and submit. If you have won cash more than five thousand dollars then you are required to withhold twenty five percent of the winning amount, in case, you do not provide your social security number to the casino, you have to withhold as much as twenty eight percent of the winning prize. In case you are a regular gambler, at the year end taxation you must fill up line 21 of the form 1040.These laws are applicable for the citizens of America only. There are also certain advantages in gambling taxation. There is also a provision to list out all the gambling loses incurred in a year. For that one has to fill up Schedule A, line 27, Other Miscellaneous Deduction from. In this way one can reduced the taxation of the winning amount. For this reason, it is always very important to keep a track record of loses you have made in a year. It may come handy, when the Tax Department, checks all the documents.
In Australia, the case is different. If a person does not make a living by gambling, then they do not have to pay any tax after winning a game. Thus every, country has their sovereign independent gambling tax rules, which every one must follow.
