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cesarebattisti · Jul 28, 2009, 09:16 AM

We are PA residents and won $3,000 in a New York casino. We are splitting the winnings but need to know approx. how much tax would be on that amount. Thank you

Chey5782 · Jul 28, 2009, 09:25 AM

YOu will be given a W-2G form to fill out. They SHOULD take the taxes out before they give you the money.. General federal tax on winnings is 25% of the total sum. So in this case it will be 750.00

DrJ · Jul 28, 2009, 09:33 AM

I don't know about the taking taxes prior to giving it to you part. But I don't know New York either.

I won more than that and was paid cash right there. I did have to fill out that form first though and they reported it as income to me at the end of the year... so taxes became due.

In fact, I thought that was one of the big issues that casino winners ended up having... they would spend it all before taxes came due then would suddenly owe the IRS out the wazoo..

Chey5782 · Jul 28, 2009, 09:41 AM

Not that I have personally run into, though its possible certainly, DrJ. I know they can tax up to 30% for penalties if you give them the wrong information or they audit you and find out later you didn't pay the full amount owed, though typically they do 28%.

DrJ · Jul 28, 2009, 10:42 AM

Yeah, I guess I don't know how much they taxed me. I always just assumed it was still based on your total annual income, winnings included.

Regardless, it is one of those problems that I would LIKE to have ;)