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.
|
|
