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.
IRS Has Handed Out More Than $100 Billion in Refunds so far
As with every tax season there have been some mistakes that have caused problems for some taxpayers, as well as the usual battle with tax scams that pop up every year. However for the most part, the refund process has gone well to this point. In fact, at the end of February, the IRS reported…
There Is a Bright Side for Early Filers Victimized by Obamacare Gaffe
There’s been no shortage of complaints and problems with Obamacare since the nations new health care coverage law went into effect. In fact, the debate continues to rage on and another major decision from the U.S. Supreme Court is forthcoming in the months ahead. However, for the time being, Obamacare has been a problem for…
Should You Pay Estimated Taxes?
For most people tax time only comes once year. However, for anyone who has to pay estimated taxes a large tax bill could be due several times a year. Again, most people do not have to worry about paying estimated taxes, but there are several circumstances that will put you in that category. The most…
Do not Be the Victim of a Tax Scam
As the tax season continues to be in full swing we here at GROCO continue to hear of more and more tax scams making the rounds. We’ve discussed tax scams before, but it never hurts to repeat this important information, especially at this time of year when tax scammers are so prevalent. In fact, several…