Get ME 1099 and W-2G Instructions 2013

You must report the full amount of your gambling winnings for the year on Form 1040, U.S. Individual Income Tax Return, line 21. You may receive a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax withheld. Include the amount from box 1 on Form 1040, line 21.

Large Payouts If your winnings are more than $5,000 after you deduct the wager, the lottery must withhold at least 25 percent of that prize for federal income taxes. They will stop at that amount if you give them your taxpayer identification number, which is usually your Social Security number.

Lottery Winnings are Taxable Income In general, all sources of income -- no matter how small -- must be claimed on your tax return. All sources of income are subject to federal and state income tax, unless they are specifically exempt by law. This includes all gambling winnings, whether or not you receive a W-2G.

Prize money = taxable income: Lottery winnings are taxed like income, and the IRS taxes the top income bracket 39.6%. The government will withhold 25% of that before the money ever gets to the winner. The rest has to be paid at tax time. ... That means the recipient would pay the income tax on that amount up front.

You must pay federal income tax if you win All winnings over $5,000 are subject to tax withholding by lottery agencies at the rate of 25%.

And in all likelihood, at least one state is going to win big twice. That's because lottery winnings are generally taxed as ordinary income at the federal and state levels (and, where applicable, locally). In fact, most states (and the federal government) automatically withhold taxes on lottery winnings over $5,000.

Depending on where you bought the ticket, prize winners have between 180 days and one year from the date of the drawing to claim their prize. So find out what the state rules are and plot a course. 2. See a tax pro before you cash the ticket.

Once you have come forward with the winning ticket, you can expect the typical scenarios: Small prizes up to $600: Paid out immediately. Mid-range prizes: Paid out on the same day or the next banking day. Jackpot prizes: Paid out in 5 to 10 banking days.

Even if you do not receive a Form W-2G, Certain Gambling Winnings, or similar document from the payer of the gambling winnings, your winnings are still considered taxable income. ... You must report the full amount of your gambling winnings for the year on Form 1040, U.S. Individual Income Tax Return, line 21.

The casinos will not report any winnings to the IRS. It isn't just on-line casinos, ANY net gambling winnings are taxable, regardless of where or how they were won. ... Assuming you are a U.S. citizen you are obligated to declare the income on your next tax return.

The IRS requires U.S. nonresidents to report gambling winnings on Form 1040NR. Such income is generally taxed at a flat rate of 30%. Nonresident aliens generally cannot deduct gambling losses.

Casinos have various ways of paying winners. Generally, if the winnings are $25,000 or less, winners can choose between cash or check. ... Some games allow for a lump sum disbursement, where the money is paid upfront. Other games disburse winnings through an annuity, where the money is paid in installments.

Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips.

The answer is yes, but the good thing about gambling tax law for big winners is that, unlike income taxes, gambling taxes are not progressive. Whether you win $1,500 at the slot machine or $1 million at the poker table, the tax rate you owe on your gambling winnings always remains at 25%.

Those general instructions include information about the following topics. You can get the general instructions at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). File Form W-2G, Certain Gambling Winnings, to report gambling winnings and any federal income tax withheld on those winnings.