The American Gaming Association has recognized Representative Dina Titus and Darin LaHood for her campaigns towards raising the threshold for reporting slot winnings tax from $1,200 to $5,000. Under federal law, casino patrons were previously obliged to report any slot machine winnings upwards of $1,200 or more, while the machine was removed from the casino and the patron signs a W-2G tax reporting form.
Following the work of Titus and LaHood, the threshold of which patrons now have to report winnings would be pushed upwards of $5,000.
Slot jackpots have gradually increased with inflation over recent years, however the $1,200 threshold has remained static since it was established in 1977. Because the threshold hasn’t tracked with inflation, there has been a significant increase in the number of reported jackpots, causing more operational inefficiencies and adding to the sea of W-2G forms that the IRS have to deal with in each year.
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