Keeping Track of Your Gambling Is Important in USA?

[Hannman]

All wins from gambling should be reported in a player’s tax returns. As explained by the IRS, the full amount of gambling winnings should be reported on line 21, Form 1040.

However, that is not all as when operators hand out bigger prizes, they would provide players with an additional form to fill out. Form W-2G is handed to players who win more than $600 from gambling. This sum upon which a player is required to fill in a form W-2G may vary depending on the gambling vertical.

In addition, for extremely lucky players who win more than $5,000 from gambling, the operator may withhold 28% of the money for Federal income tax. In case players failed to provide the operator with their Social Security number, the money withheld will actually be 31% of the total winnings.

While players cannot really legally win money from gambling without paying taxes, they can optimize their earnings by deducing losses.

 

[swift]

I think Yes, it is important to keep track of your gambling activities in the USA because all gambling winnings are subject to federal and state taxes. This includes income obtained from activities such as casino games, lotteries, horse racing, and sports betting