Categories: News & Updates

Trump promises to “think about” doing away with the tax on winnings from gambling.

In an effort to further his administration’s efforts to lower taxes on regular income, such as tips and overtime, President Donald Trump announced on Tuesday that he would think about doing away with federal taxes on gambling profits.

Trump stated he would keep the option open when asked during an Air Force One gaggle if he would consider eliminating the tax on gambling earnings.

“We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime,” he stated. “I’m not sure if gambling winnings are tax-free. I will need to consider that.

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Trump signed the “no tax on tips” and “no tax on overtime” portions of the One Big Beautiful Bill Act (OBBBA) into law over the summer, enabling people to claim additional discounts.

According to the American Gaming Association, nearly 60% of American adults gambled in the previous year, with 21% placing sports bets and 30% playing at a physical casino.

Anyone who wins more than $600 usually receives a W-2G form, and the Internal Revenue Service (IRS) states that the standard withholding rate for gambling winnings of $5,000 or more is 24%. Among other types of gambling, lotteries, raffles, horse races, and casinos are subject to the levy.

If the winner won more than $5,000, up to 28% of the award could be withheld for federal income tax; if gaming companies do not receive a Social Security number, that percentage rises to 31%.

Courtesy: https://www.covers.com, https://www.casino.org, https://pechanga.net

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