How To Manage Your Casino Winnings

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It’s the dream of every casino player: to hit that big jackpot that sees that walk away with thousands in winnings, if not millions. It’s such a popular goal that millions of people around the world give it a try all week long, but every so often someone hits the big time. Winning big might seem like a dream come true, and in many ways, it is, but it’s easy enough to get completely overwhelmed. Many winners in the past have battled to deal with their casino winnings and ended up losing much more money than they intended. Use these tips to ensure that you get every cent that you’ve rightfully won.

Declare It Immediately

A very common mistake among overwhelmed winners is not approaching he taxman straight off the bat. The casino will need to make a statement about where the money went to the IRS or equivalent national tax organisation, which means that they will not be looking for the winner, if the winner didn’t make himself known first. In fact, in fact, many countries have a law that requires all winners report their earnings for tax purposes, and can face large fines or even jail time if they don’t follow the law. This applies to all winnings that are made at a casino, so don’t forget to add it when doing tax returns.

Withholding The Money

Depending on the country that you live in, up to a quarter of your winnings might be set aside for tax income purposes. This might seem unfair to the winner, but as the winnings are often considered a form of income, they are liable to be taxed. It very much depends on the amount of money that was won, and it can be quite a hefty sum of money for those that are lucky enough to earn millions. It’s also something that will often take place automatically between the casino and the tax service, but it will always be declared to the winner rather than just disappearing.

Put It Away

Money can have a powerful effect on us, especially when it’s a large sum of money, and there are countless stories of lottery winners losing all of their many millions in a few short years because of constant poor financial decisions. It’s an easy hole to fall into, and it can lead to serious trouble down the line. A better idea is to immediately take the money and put it away for safe keeping. A savings account is a good idea, along with an investment account that is able to grow with interest over time. It might also be a good idea to put a portion of the money into a special gaming fund that can cover not just the costs of entry,  but allow for more in the future. It’s important to make sure that the bulk of the money is safely stored away to avoid any potential mishaps.