Playing taxes on your winnings are no longer exempt. Whenever you happen to would possibly well perchance be a U.S. citizen you owe Uncle Sam a section, regardless if gained here or in but every other nation. The IRS considers all playing winnings taxable earnings, even when it be an amount that would no longer salvage reported to the IRS by the payer, fancy that $20 resolve on a scratch off designate, or a lucky $250 when your numbers hit, even a $1,000 jackpot on your common slot machine. Sadly, playing taxes are due.