If You Win the Big Jackpot Expect the IRS to Coming Knocking
Many people from all over the country enjoy gambling. Whether it’s big time poker, playing the slots or betting on sporting events, there are a lot of people who enjoy games of chance and the idea of winning something for nothing. Of course, most of the time, the house wins and the player walks away empty handed. When a player does win, it’s usually cause for a celebration. However, the big victory can be short-lived when the winner discovers that the taxman wants his piece of the pie as well.
In fact, the IRS is looking to really crack down on gambling earnings. As it stands rights now, when a person plays the slots he or she has to report any earnings of $1,200 or more to the IRS. The machine even stops working as soon as someone wins. It won’t start again until after a casino worker has presented the lucky winner with the necessary tax papers. However, recently the IRS threw out the idea of lowering that threshold down to just $600.
To no one’s surprise, many gamblers hate the idea. Realistically, they have a good point, too, because most people who play the slots never win enough to make up for their losses, so why should they have to pay taxes if they get lucky once or twice? Time will tell if the IRS end up getting the threshold lowered or not, but gamblers and casinos alike oppose the idea. For small time gamblers the idea seems unfair, and casinos say it would only take the fun out of the game for players.
What Is Section 1202 Stock?
The Protecting Americans From Tax Hikes Act of 2015 (PATH Act), which was signed into law late last year, finally made several temporary tax breaks permanent. Among the tax breaks included is the Small Business Stock Gains Exclusion, known as Section 1202. So what is the Small Business Stock Gain Exclusion? Section 1202 is designed…
Some of the Most Amazing Tax Deductions Ever
At GROCO, we have been doing this for more than 50 years. That means we’ve heard just about every crazy tax story you can imagine. With tax season now officially in full swing we thought we would share some of the craziest tax deduction stories we’ve ever heard; and they’re all true. A gas station…
Is The U.S. Really a Low-Tax Country?
Many U.S. taxpayers feel that our country’s taxes are too high, no matter which economic class you’re in. Likewise, regardless of which side of the political world you rest, most people would agree that the U.S. tax system needs some serious upgrading, and not just some fine-tuning. However, it appears that compared to many of…
Will Your Tax Return Draw the IRS’s Attention?
No one wants to experience a tax audit. The good news is that most people never will have to go through that experience. The IRS simply doesn’t have the time and resources to audit every tax return. In fact, the IRS only audits about 1 percent of all returns. That means most people don’t have…