How Much Are Gambling Winnings Taxed by the Government?

Gambling winnings are taxable and must be reported to the Internal Revenue Service (IRS). The amount taxed depends on the type of gambling and the total winnings. Here’s a quick breakdown:

  • **Federal Taxes**: Generally, gambling winnings are taxed at a flat rate of 24% if they exceed $600.
  • **State Taxes**: State tax rates vary; some states have no taxes, while others can go up to 13%.
  • **Reporting**: Winnings over $5,000 generally require withheld tax before payout.
  • **Deductions**: You can deduct gambling losses only if you itemize deductions and have records to prove your losses.

For accurate reporting, always keep detailed records of your gambling activities.

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