If you’re new to the jackpot handpay process, you may not know what your options are. We’re happy to help!
Can I ask the casino to take the taxes out at the time of the hand pay or is that their choice not mine?
Adena K.
For the most part, it’s your choice, but there are exceptions which we’ll get to in a moment. If you’re new to a jackpot, ask the questions upfront because slot attendants can default to their normal process if you don’t speak up before they go to process the jackpot, so if you want taxes taken out, mention so when they come over to begin assisting you.
There’s actually three elements of taxes to take consideration of when it comes to hitting a jackpot in the United States (and presuming you’re a US citizen): federal taxes, which are going to impact you regardless of your location; the state taxes where you reside; and the state taxes where you hit the jackpot.
Federal tax laws are uniform across the country, and gambling wins are considered income regardless of where it was won, so you generally can easily as for federal tax to be set aside from your jackpot.
When it comes to state taxes, some states automatically require a certain percentage taken out for taxes. If you win a jackpot in a state where this is required, there’s no choice involved given the laws. But other states don’t have that requirement (even if you have to file and pay taxes there), and still other states don’t have income taxes at all. So it’s a more complex scenario and depends in part on where the win was achieved.
So if you’re new to a jackpot, or new to getting one in a certain location, you may wish to ask about what the rules are where you are – most attendants know the basics. And as always, consult a tax accountant that has familiarity with gaming tax laws, including the states where you live and gamble, to ensure you’re best covered around all your questions. We are not accountants, so this is helpful high level information, but shouldn’t be considered as tax advice.
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