If there’s one thing everyone can agree upon, it’s that nothing is better than winning cash. But even through the thrill of the win, it’s essential to remember that winning cash from a game is not the same as finding cash on the street. If your cash winnings are big enough, you have to report your earnings on your taxes.
Don’t let taxes dampen the mood, you’re still a winner! You’ll just have to take a few extra steps when it’s time to file. Here’s a step-by-step guide on how to file your taxes if you’ve won more than $600 in the calendar year.
When to Report Your Earnings
You’ve started winning cash on your games, congratulations! The winner circle is a nice place to be, but in order to hang with the victors you have to do your taxes.
You must report your winnings if you’ve won $600 or more. Your winnings are fully taxable, and winnings will generally be subjected to a flat 24 percent tax. However, the tax on winnings can depend on the type of gambling and the wager to winnings ratio.
You may be wondering if you really have to go through all the trouble of reporting your winnings. The answer is unequivocally yes. Taxes are no joke, and you could get in some serious trouble for failing to report major winnings. Punishments vary depending on your jurisdiction; failing to report could lead to paying interest on unreported winnings or getting charged with tax evasion. While the cash you win is the result of fun and games, reporting those winnings is serious business.
It’s best practice to keep a log of your wagers and winnings once you start gaming for cash. Designate a safe place to keep track of your games. You should include the game you played, the date of your game, how much you bet, and how much you’ve won. The records will come in handy when it’s time to file. Be sure to keep any wager statements and payment slips you receive throughout your time gaming.
What Forms Should You File?
IRS Form W-9
The W-9 form enables you to efficiently and securely report your income to the IRS. The W-9 form is for contracted workers, investors, and gamblers. Online casinos and real money gaming organizers may have you complete W-9 before you even win; if you’ve ever gamed on DraftKings, you’ve filled out a W-9.
Don’t worry, this is a basic form that will help you secure your big winnings and keep you out of trouble. Filing W-9 is a necessary step for online casinos to send you the tax forms you need.
IRS form W-2G
The IRS form W-2G is the gambler’s 1099. This form documents the payments that casinos and gaming companies have paid you.
Once your winnings reach $600, casinos and gaming organizations will send you an IRS W-2G. Forms are sent out by January 31, and they cover your winnings from the previous year. If you won a $1,200 jackpot in 2022, you’ll get a W-2G form in January 2023.
You’ll receive a form from every real money gaming or gambling institution you’ve won more than $600 from. If you receive more than one W-2G, you should be filing multiple forms. It is possible to combine multiple W-2G forms, but only if they are from the same casino or gaming organization. Forms from different casinos and game organizers should always remain separate.
Win Real Cash with These Online Casinos and Games
If you’re ready to win cash at home, these online casinos and gaming options will be your new best friends.
Golden Hearts Games – This site has all the exciting casino games you know and love. From Bingo to video poker, Golden Hearts Games has you covered. You can win an instant $2,500 with every slot machine on this site.
This site loves to make people winners, Golden Hearts Games pays out over $40,000 in cash prizes every single day. Want to be one of those winners? It’s quick, easy and simple to get started. Create an account and you’re on your way to earnings some extra cash. There are thousands of winners every day, see if you can be one of today’s lucky players.
Pocket 7 Games – This game developer offers cash prizes for their mega-fun quickplay games. You can download any Pocket 7 game on iOS or Samsung devices. You can play competitive Solitaire, Bubble Shooter, Blackjack with this all-in-one gaming app.
iOS Real Money Games
Cash prizes are waiting for you in the app store. Our favorite apps are completely free to download, so what’s stopping you? Here are some iOS games that we’re loving right now.
Blackout Bingo – Join the community of over 5 million Blackout Bingo players who are constantly winning real cash prizes. This skill-based take on Bingo is a must have app for real money gamers. Play solo or against real people to
Pool Payday – Mobile billiards where you can compete on tournaments and 1v1 competitions for cash. 8 ball, billiards, and more. Pool Payday is the Mobile billiards where you can compete on tournaments and 1v1 competitions for cash. Customize your gameplay with custom pool cues and show your flare with trick shots that earn you double the points.
Big Buck Hunter – Show off your aim and challenge your gaming skills with this simple to play but difficult to master classic game. Scope out an immersive world filled with all kinds of animals. Challenge your friends and other worldwide players to hunting challenges and showcase your achievements in the app’s trophy case.
Android Real Money Games
You can game for huge cash prizes no matter what Android model you have. Take your pick from the Google Play Store and start gaming. Here are some popular real money games for Android users that we think you’ll love.
Spin for Cash- Who doesn’t love classic slots? Spin for Cash gives you the opportunity to test your luck with classic casino-style slots. It’s as easy as download, spin and win.
Solitaire Cube – Solitaire is no longer a solo game. Now, Solitaire is an exciting multiplayer game. This fast-paced skill game brings competition to the classic card game. Play against real people for awesome cash prizes, anytime. Join the Solitaire Cube gaming community and start winning rewards today.
MistPlay – You won’t pay any entry fees with these games. Mistplay is the Android app that pays you for the time you spend on the app. You’ll get paid no matter how much you win. There is a huge arcade of the mobile games you know and love in the app. Get paid in cash and gift cards when you game with this app.