I was curious is anyone aware how tax events work in the US (New Jersey in my case) with online casino wins over the taxable threshold. Normally if you hit $1200 you are taxed on that win. Does anyone know if online casinos simply submit these milestone wins without any regard for total withdrawn?
My example is I deposited $500, played a lot back and forth and ended up winning $1250 on one slot with a $4 bet. I then kept playing it and lost it to $100 and won again but this time $1600. I lost that and cashed out at $200. This all occurred in the same day.
Not a big deal on the win/loss but will I now be paying taxes on both the $1250 win and $1600. I believe that legally that is what is going to happen but just curious if anyone is familiar.