Question about taxes?

I won $500 in a Casino Cash Giveaway game. The first level was $100 in free play, the second level was $200 in free play, the third level was $300 in free play, and the fourth level, which I won was $500 in cash. It would have been $1,000, but someone else also won so the cash prize was split. They took my Player's Club Information and my ID info and made a copy of it. They had me file paperwork and sign documents swearing that the SSN I provided was mine since I don't have a SSN card on me. They informed me that all of this and the $500 will be give to the IRS for my tax information for 2020. Since the cash was under $1200, will I have to pay any taxes on this $500 win?

Quote: Starburger

I won $500 in a Casino Cash Giveaway game. The first level was $100 in free play, the second level was $200 in free play, the third level was $300 in free play, and the fourth level, which I won was $500 in cash. It would have been $1,000, but someone else also won so the cash prize was split. They took my Player's Club Information and my ID info and made a copy of it. They had me file paperwork and sign documents swearing that the SSN I provided was mine since I don't have a SSN card on me. They informed me that all of this and the $500 will be give to the IRS for my tax information for 2020. Since the cash was under $1200, will I have to pay any taxes on this $500 win?

Yes, they will issue you a 1099 that needs to be reported on your taxes. Every dollar you win is taxable even under $1200. The $1200 number is when the casino will report a single slot machine win but you are supposed to report every dollar. Most casinos only report other winning when they exceed $600. At $600 they must file a 1099.

I'm guessing you won $100 or more in a previous giveaway this year, so this $500 put you over the $600 threshold.

Quote: Deucekies

I'm guessing you won $100 or more in a previous giveaway this year, so this $500 put you over the $600 threshold.

Many companies will send a 1099 for less than $600. The IRS requires them to send one at $600 but many companies will send them for any amount they give away. Once again, all income is taxable even if you don't get a tax form.

Quote: Starburger

Since the cash was under $1200, will I have to pay any taxes on this $500 win?

everything you win in a casino MUST be reported on your tax return. One does NOT need to have any casino given form to do just that.

IF you do not report ALL income, you are cheating the system (Cheaters R lozers)
and you will pay for that sooner or later.

most scoff at that, they are followers (they just regurgitate) and are NOT leaders.

IRS wants you to report exactly what you won and have it properly documented.

Quote: 7craps

everything you win in a casino MUST be reported on your tax return. One does NOT need to have any casino given form to do just that.

IF you do not report ALL income, you are cheating the system (Cheaters R lozers)
and you will pay for that sooner or later.

most scoff at that, they are followers (they just regurgitate) and are NOT leaders.

IRS wants you to report exactly what you won and have it properly documented.

^ this poster, while correct, forgot to mention that you can deduct losses against your win. You need to keep some records, though, in case you get audited.

Quote: rsactuary

^ this poster, while correct, forgot to mention that you can deduct losses against your win. You need to keep some records, though, in case you get audited.

One might be able to deduct losses but it is not 100% a certainty.
Many factors come into play.

one should follow ALL IRS rules (sure, may be hard to find and understand them all) in
regards to gambling wins and losses and sessions and such.

IRS wants some (if not all, imo) of your gambling/casino wins.
They really do not care about your losses unless you claim and document them with an approved IRS method.
Good luck

Thank you guys for your in-depth responses about tax wins on a Casino Cash Giveaway Game.. I guess I should be grateful I didn't win the entire $1,000 as that would have most likely put me in a higher tax bracket if I am not mistaken.