Tax Threshold On Winnings Could Go From $1200 to $2000

[vixen777]

SOURCE

Tax Clarification​

Fox explains that the issuance of a W-2G is governed by §3402(q) of the Tax Code — and that was not changed in the OBBBA.

Thus, beginning in 2026, a W-2G must still be issued at $1,200 for a slot win,” Fox said.

Fox says an increase to the slot threshold could still come, though he thinks the odds are long.

Now, it’s possible Congress meant for both limits to increase. Typically, a ‘technical corrections’ bill is proposed. This is usually bipartisan and fixes ‘oops’ items. However, given how polarized Congress is, I have my doubts about such a measure passing this year. And it might be that Congress intended this to be exactly as it is,” Fox continued.

“Finally, it is possible the IRS will interpret this law change to mean the W-2G threshold is increased to $2,000. That would be welcome by almost everyone, but I would not hold my breath waiting for that interpretation,” Fox concluded.

The slot threshold hasn’t changed since 1977. The casino industry has long lobbied the federal government to increase the threshold, as $1,200 in 1977 is about $6,600 today with inflation. Win a player hits a slot prize upwards of $1,200, the game goes offline until a slot attendant provides the winner with a W-2G form.

AGA Comments ​

Chris Cylke, the AGA’s senior vice president of government relations, told SBC Americas that the gaming trade group believes that OBBBA indeed raised the slot tax reporting threshold to $2,000.
“Raising the slot tax reporting threshold to $2,000 and indexing it to inflation is a long-overdue modernization that reduces regulatory burdens and improves the customer experience,” Cylke commented. “It’s a hard-fought win for our industry, and we look forward to working on regulatory implementation.”

 

[dani3839]

$2000 would be sweet