A Maryland man surely has a different perspective on the tax changes the fiscal cliff may bring after winning the largest jackpot in the nine-year history of the Borgata Hotel Casino & Spa on Sunday, according to the Press of Atlantic City.
The man, who asked not to be identified, was on vacation in Atlantic City, played a $5 “Wheel of Fortune” slot machine that offered a progressive jackpot, and won $3,843,951.
How Stuff Works’ website states that the odds of hitting the jackpot on a three-wheel slot machine are 262,144 to 1.
According to the IRS, gambling winnings are “fully taxable, and must be reported on your tax return.” In many cases, casinos will take 25 percent of your winnings for the IRS. While some smaller gambling winnings can be offset by itemizing and gambling losses, winnings in the amount of $1,200 or more from a slot machine must be reported, details Bankrate on its website.
It is unclear whether tax rates on gambling winnings will be affected by the results of the fiscal cliff deal in Washington.