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So you have won a lot of money playing Bingo? Congratulations! However, don't forget that if you won over a certain amount, Uncle Sam is going to want some of that cash!
If your single prize exceeded $1,200 in cash, you must claim it on your tax return. Make sure when you collect your cash from the Bingo hall or online source, that the payer of the money collects all of your pertinent information, including your name and social security number. You should receive a form from the payer of the money come tax time.
When it is time to fill out your taxes, your will need to fill in line 21 on form 1040 that will be added onto your total income for the year. This line shows any additional money you made, such as winning at Bingo.
You really didn't think that Uncle Sam would let you keep all of that money tax free, now did you?
|Jennifer Mathes, Ph.D.|