How Much Can You Win at a Casino Without Paying Taxes?

In the United States, gambling winnings are considered taxable income, which means they are subject to federal and state taxes. The Internal Revenue Service (IRS) requires casinos to report gambling winnings over $1,200 for slots and $1,500 for table games.

The casino will also withhold a percentage of your winnings for taxes before you receive your payout.

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The amount of taxes you owe on your gambling winnings depends on your tax bracket. For example, if you are in the 25% tax bracket, you will owe 25% of your winnings in taxes. If you are in the 39.

6% tax bracket, you will owe 39.6% of your winnings in taxes.

There are some ways to reduce the amount of taxes you owe on your gambling winnings. You can deduct your losses up to the amount of your winnings on your federal income tax return.

PRO TIP:It is important to remember that gambling winnings are taxable. Generally, any amount won at a casino or other gaming establishment that exceeds the amount you paid to participate in the game is taxable. If your winnings are more than $5,000, the casino will likely withhold 25% of the winnings for federal taxes. It is recommended to keep records of all your wins and losses so you can accurately report them on your tax returns.

You can also take advantage of tax-free gambling states like New Hampshire and Pennsylvania, which do not tax gambling winnings.

If you do not pay taxes on your gambling winnings, you could be subject to penalties and interest charges from the IRS. So it is important to report your winnings and pay your taxes owed.

While there is no sure way to avoid paying taxes on your gambling winnings, there are some ways to minimize the amount you owe. By deducting your losses and taking advantage of tax-free gambling states, you can reduce the amount of taxes you owe on your gambling winnings.