Tax implications on a big win?

[ilzho]

Hello:

Let's say someone has a winning ticket that pays $1000.

Does the track take out a certain percentage of the taxes for the Federal Gov't or is this done when you file taxes for the appropriate year?

Thanks.

[Inner Dirt]

Has to be $5,000+ gross at odds of 300-1 or higher unless something has changed for withholding.

[PaceAdvantage]

Has to be $5,000+ gross at odds of 300-1 or higher unless something has changed for withholding.If this, then they take out at the window.

Anything under $5000 (but still at odds of 300-1 or higher) is reported to the IRS (you have to sign), but nothing is taken out at the window...

[lamboguy]

in massachusetts, if you bet $600 to show and the ticket returns $630 they hand you something like $582 when you go to collect

[pondman]

in massachusetts, if you bet $600 to show and the ticket returns $630 they hand you something like $582 when you go to collect

It's going to depend on the state. Oregon has a bunch of rules like this, included a front end tax. I've cashed some serious amounts of money on win tickets at windows in California and walked away.