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Do I need to report cash wages, tips, gambling winnings or prize money? |
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Every taxpayer is required to report the total income received during the tax year on his or her annual income tax return. Cash wages and tips need to be reported to an employer on a weekly basis, so that the proper amount of payroll taxes can be withheld. Individuals who win a cash prize from a lottery or have proceeds from gambling are also required to report this income, so that these amounts can be included in income and subject to the appropriate level of tax. You should keep a detailed record of the payments you receive to ensure that your tax return is completed properly. |
