Gambling taxes on your winnings are no longer exempt. Ought to you are a U.S. citizen you owe Uncle Sam a bit, regardless if received here or in a single other nation. The IRS considers all gambling winnings taxable profits, even though it is an quantity that does no longer salvage reported to the IRS by the payer, take care of that $20 make a choice on a scratch off tag, or a fortunate $250 when your numbers hit, even a $1,000 jackpot on your current slot machine. Sadly, gambling taxes are due.