Any winnings that you are required to pay taxes on are reported by the casino to the IRS and to your state tax commission. In most states this would be any single hit jackpot of $1,200.00 or more. For instance, if you hit 3 Double Diamonds on a slot machine that pays $1,200.00 for that single hit, then you would pay taxes on that amount. The casino will issue you a W2G showing the taxes that you paid and the casino will report it to the IRS. But, if you were to win three $400.00 jackpots totaling $1,200.00, you would not have to pay any taxes on these jackpots. However, if you have accumulated or aggregated cash transactions (either paid into a casino or paid out from the casino to you) totaling $10,000.01, it will be reported because of the Bank Secrecy Act enacted by Congress to prevent money laundering.
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