Is my gambling winnings taxable?

Yes, gambling winnings in California are taxable. According to Internal Revenue Service (IRS) regulations, any income earned in the U.S. is taxable, regardless of the activity or source. In California, all gambling winnings, whether they are lotteries, raffles, horse racing, or casino winnings, are taxable income. Gambling winnings are reported on your federal income tax forms and must be included when you file your California state income taxes. You may also be required to fill out tax forms when you actually win the money. If you win more than $600 at a casino, for instance, the casino will issue you a form called a W-2G. This form includes information about how much you won, the type of gambling, and the date you won it. If you win more than $5000 gambling, the IRS requires the payer to withhold 24% in taxes. This money will be deducted directly from your winnings, and you’ll receive a receipt that you can use to claim the amount that was withheld on your taxes. It’s important to keep records of all your winnings and losses. When you file taxes in California, you’ll need to include the net amount of your winnings or losses in order to calculate your taxable income.

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