Gambling Income
What It Is:
Gambling income is any money that is earned from games of chance.
How It Works/Example:
Income from gambling is taxable money earned from games such as lotteries and keno or from institutions such as casinos or racetracks.
For example, someone plays a state lottery and wins $1 million. This is gambling income and is taxable. Similarly, someone who wins $1000 at a casino’s roulette table is required to pay tax.
Why It Matters:
Gambling income is considered by tax authorities to be no different from any other taxable income and must be reported and assessed.
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Cached on May 24, 2012, 12:12 pm