Playing taxes for your winnings are no longer exempt. When you happen to would possibly maybe very neatly be a U.S. citizen you owe Uncle Sam a share, regardless if won right here or international. The IRS considers all playing winnings taxable income, even supposing or no longer it is an amount that does no longer salvage reported to the IRS by the payer, like that $20 decide on a scratch off impress, or a lucky $250 when your numbers hit, even a $1,000 jackpot for your well-liked slot machine. Sadly, playing taxes are due.