How to Count Gambling Winnings Tax Calculator + 3 options to Minimize

Every player that have gambled before knows that winning is some amount of money has taxes. The amount that you have gained will never always be only that amount of money. Because each casino will put taxes and these taxes also go to the government.

It is actually fair to say that it is okay for you to pay taxes because the taxes will not be that much to begin with. At most casinos will tax you with around 30% off of your total winnings. Each taxes will vary from time to time and prices may actually increase.

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But since the pandemic has had prices of taxes have actually come down lower and lower every single day. Take for example Las Vegas casinos strip in Las Vegas Nevada their casinos have decreased the amount of taxes from around 30% up to 20%.

The taxes price decrease is supposed to bring more players that would be more interested in playing casinos. Whereas if you go to online casinos you probably don’t even have to pay taxes at all but or the taxes would be as low as only 5% for a player to play.

What are Gambling Taxes?

Many people still don’t know how to count their tax from gambling. That is why every single time they win they eventually question themselves. For example on why do I only get that much money when I have for example $100.

When a person wins $100 they probably only get a clean amount of 80 or $70 in total. This is okay and it is actually justified to begin with.

Because every single player needs to pay their taxes in order for these casinos to function well. Casinos that function well have its own reasons why they put taxes. It is actually not a way for them to make money but the way for them to regulate that each casino would never function well without any gambling commission.

That’s why gambling commissions need taxes so that they can function . But they will be able to regulate these kinds of casinos by giving you regular checks of slot machines and such games.

Why do Players Need to Pay Gambling Tax?

Most people would actually ask this question a lot of times. Every single time before they go to a casino they would have this thought in their mind on why do you have to pay taxes right.

Eell casinos do not actually regulate their own games that is why there is the gambling commission of each state in America for example the Mississippi gambling State commission.

These gambling commissions are able to regulate these kinds of games. This is very important so that these casinos would never be able to cheat you. Take for example the game of slot machines. There is a minimum amount of RTP or random number generator percentage for you to win.

If the number is below 90% then there’s a huge chance that you won’t be able to make your money back. This is where the gambling commission comes in and this is where your tax money is needed. In order for them to be able to manage these games for you they also need to be paid.

They are able to do inspections such as daily or even weekly inspections. When they do inspect this they would be able to check whether or not the slot machines are still fair to play for you and if they’re safe for you. On top of that tax money keeps gambling clean.

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State’s Tax Rules

Each state will have its own gambling permits. that is why you do not see many States legalizing gambling in the first place. This is because each state need a reason for them to legalize gambling. In this case many states legalize gambling because they want more income for that place.

But if you look at the state of Nevada in which Las Vegas is located then you know that Las Vegas is a very rich place and it has a lot of income. The state of Nevada gains its money from tourism but moreover the casinos attract these kinds of tourism.

If the casinos are not able to make as much money back then they would eventually have to deal legalize these kinds of casinos. These tax rules may differ from state to state.

Overall, states have gained a lot of benefits from legalizing casinos. But it comes with a price which are taxes. These taxes can only be paid from games that are already played. And the taxes is paid for only by the winner of a game.

So if you play poker, and you lost the game. This means that you actually do not have to pay for it at all. Instead, all you need to pay for is your drinks. The taxes will be taken from you right after you have won.

Many lottery winners or slot machine winners have gained around 1 million dollars in price pool winnings. But as a result of taxes they only get to bring home around $600,000 up to $700,000 in total. But this tax has gotten out of control.

How to Count Gambling Winnings Tax Calculator?

Counting gambling winnings is actually quite easy. Usually you get whatever you have won but take for example that you have one around $100 from the game of blackjack. In general you would be able to take home around $100 without any cut at all.

And the rules have kind of changed and you will get a 20% cut first of all you need to determine the amount of taxes that you will be cut. We have mentioned to you before that these amounts of taxes can range from 20% up to 30% and no more than 30%.

After knowing that percentage then there are two ways to do this. You can use this percentage on basically every single income that you get. So if you’re playing a game of slots, blackjack, poker all together then you can individually count off the taxes.

Or you could also count some things such as the collective taxes of all of these games. A collective tax is basically a group of taxes all together as one. It is the total amount of taxes that you have to pay but to make it completely even easier for you to count your taxes will be applied when you withdraw money.

Casinos usually have their own track records on what types of games that you have played. These games have played would also include all of the games that you have won. If you did not win the game then they would actually not cut any taxes from you.

This is because these taxes only applies to Winners and winners only. If you’re not a winner then they are not going to take any money from you. But beware that even games such as slot machines will take up a lot of taxes.

How to Minimize Taxes?

After knowing how to count the taxes that you have to pay of course you want it to be low. Because after all you have put so much effort and money into these games. It would be such a waste if you have to pay a bunch of taxes. It is actually not worth it for someone to pay taxes.

The way they bet their money it is either you win or you lose. If you win you get double and if you lose you lose everything. so we’re going to give you a few tips on how to avoid these kinds of taxes.

Because if you do not avoid these kinds of gambling taxes then you would lose at least a couple hundred dollars up. Sometimes even thousands of dollars.