Over the years, jackpots have gotten bigger, and more states have approved casinos. The $1,200 amount was established in 1977 and hasn’t been revisited since. That is considered taxable income and is expected to be noted on an individual’s Form 1040 when filing at tax time.
Whenever a casino player hits a jackpot of $1,200 or more on a slot machine, the casino is required to issue a Form W-2G to the player and report the amount to the Internal Revenue Service. It’s not a life-or-death issue, but it’s clearly an annoyance that shouldn’t be taking so much time to fix. It seems a pretty simple and straightforward request, but it may take an act of Congress to get it accomplished.Īs the amounts of slot machine jackpots grow and the casino industry expands across the United States, the low threshold for issuing an IRS Form W-2G is becoming a bigger problem for the industry. (Photo courtesy of Caesars Entertainment)
Nancy Greenough won more than $500,000 at Harrah's Las Vegas on Monday Sept.
