If you’re wondering how to not pay taxes on gambling winnings, you’ve come to the right place. There are a few steps you can take to minimize your tax bill. First, make sure you’ve reported your income and losses correctly. The IRS doesn’t care how much you win in one casino; they’re only interested in your overall earnings. Then, fill out the correct forms and submit them to the IRS.
Keep detailed records of your winnings and losses. Keep W-2G forms, wagering tickets, canceled checks, credit card statements, bank withdrawals, and actual winnings statements. If you’ve been lucky enough to win a large amount, you’ll also want to keep the payment slips you received from gambling establishments. These documents are expected by the IRS to help you claim the winnings on your taxes.
If you’re a foreign national, you can get help with your tax return by contacting a tax CPA who specializes in expatriates with US interests. These professionals can review your situation and find the most appropriate way to minimize your gambling winnings tax. One of these international tax experts is Artio Partners. Once you contact them, they can help you navigate the complicated process of taxation for your gambling winnings.
Gambling losses can also be claimed as itemized deductions on your primary return. However, be sure to document your gambling losses with the IRS and save the records. It is best to save the original or copy of all gambling records. Then, you’ll have a record of your gambling earnings and losses. You can also claim your gambling losses as a bonus deduction. So, the next time you’re wondering how to not pay taxes on gambling winnings, try these strategies:
If you’re planning to gamble overseas, don’t forget about tax laws. If you win over a certain amount, the IRS will deduct 24% of your winnings. In addition, you can claim your losses up to the amount of your winnings. Regardless of where you gamble, make sure you keep good records of your gambling winnings and losses to lower your taxes. And remember: gambling is a game of chance. Always remember that the house always has the advantage.
If you’re gambling for fun, you can deduct your losses as Schedule A losses on your 1040. But if you lose more money than you win, the IRS will audit you and confiscate your winnings. Also, keep in mind that the standard deduction has doubled! Now, $12,000 for an individual and $24,000 for a married couple is a great way to avoid paying taxes on your gambling winnings.
Another simple way to avoid paying taxes on gambling winnings is to keep records of your winnings. Even if your winnings are only a few hundred dollars, they still require you to report them. This way, you can avoid paying the 24% estimated tax, and only pay taxes on the part of your winnings that is actually taxed. Once you file Form W-2G, the IRS will receive notification of your winnings.