Michigan Online Gambling – Sports Betting, Casino & Poker News

Before you stuff those slot winnings in your mattress or splurge on a new toy, just know the government is entitled to a piece. In the state of Michigan, you are required by the letter of the law to report any and all gambling winnings, even the smallest of wins. The government considers those wins as taxable income, at tax rates of 25% for federal, and another 4.25% for the state.

Depending on the game youre playing, a win above a certain dollar amount will trigger the casino to automatically file a W-2G tax form with the IRS on your behalf. If you are fortunate to win $5,000 or more, the casino is also required to automatically withhold the feds cut of 25%. In both cases, you still need to report the income on your tax return.

For more on IRS reporting thresholds, and how to report gambling winnings or losses on your tax forms, visit our comprehensive tax page.

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Michigan Online Gambling - Sports Betting, Casino & Poker News