Related Information

Question: How is withholding from gaming winnings reported to the Colorado Department of Revenue?
Income tax is withheld from horse and dog racing winnings if the amount won is greater than $5,000 and at least 300 times the wagered amount. Income tax is withheld from slot machine and bingo winnings if the amount won is $1,200 or more and the customer does not provide proper identification. The amount withheld is 4% of the gross winnings and is reported to the customer on federal form W-2G or 1042S.

The Colorado withholding is paid monthly by gaming establishments on form DR 1091, the Backup Withholding Tax Return. The Annual Reconciliation of Backup Withholding on Gaming Winnings is filed on form DR 1101, which is similar to the annual reconciliation used by Colorado employers for wage withholding.

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