What is Gambling Income?
Gambling income is any money that is earned from games of chance.
How Does Gambling Income Work?
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 Does Gambling Income Matter?
Gambling income is considered by tax authorities to be no different from any other taxable income and must be reported and assessed.