Casino winning taxes:
As responsible citizens we are supposed to pay taxes for our earnings. Earnings through gambling are no exception. Taxes are to be paid on all gambling winnings. If one wins a jackpot of 1200 dollars or more, or pockets an amount which is three hundred times the bet amount the casino needs to pass all the personal information of the winner for example his or her social security number to the IRS (Internal Revenue Service). In fact professional gamblers are supposed to hold independent files as self employed business owners. The IRS is very strict with its record measures where all the winnings and losses are to be reported separately in a pretty detailed fashion and cannot be lumped together. The IRS also maintains an elaborate detail of the type of wager, the location of the gambling etc in its W2-G forms. The latter is a form that a player needs to feel up accurately enumerating his or her loss or gains in the game or games played.
However reporting or withholding of a winning bet depends on the kind of gambling, the ratio of the amount won vis-a-vis to the amount waged. Earnings through gambling are taxable no doubt, but there is a waiver or a concept of tax refund of the earnings through gambling. The people from Canada as well few gamblers from other states are eligible to get refund of the gambling tax paid by them. The other countries include like Czech Republic, Denmark, France, Germany, Italy, Ireland, Luxembourg, Spain, Sweden, Netherlands, Austria, Hungary, Japan, Russian Federation, Tunisia, Turkey, Ukraine, Slovak Republic, and United Kingdom. Such refunding of the tax given on gambling is the out come of the U.S- Canada Tax Treaty.
On-line games like baccarat, blackjack, roulette are exempted from payment of gambling tax. Losses incurred in these games cannot be reported and cannot be refunded.