Are gambling winnings taxable?
Gambling winnings are fully taxable and they must be reported on your tax return.
What is taxable?
All gambling winnings are taxable—whether they are from lotteries, raffles, horse races, casinos, etc. Non-cash prizes such as cars or vacations are reported at their fair market value.
How do I report gambling winnings?
You report gambling winnings as “other income” on Form 1040, Schedule 1.
Are gambling losses deductible?
Gambling losses up to the amount of gambling winnings may be deductible if you itemize. You can claim your losses on Form 1040, Schedule A, as a miscellaneous deduction not subject to 2%. Not itemizing? No deduction. You must keep a detailed record of your winnings and losses to substantiate any deduction and be able to provide receipts, tickets, statements, or other records to the IRS if requested.
Will I receive a tax form, such as a Form 1099?
The payer (i.e., casino, lottery commission) will issue a Form W-2G, which will be given to you when you collect your winnings or mailed to you by January 31 following the year in which you won. In most cases, the payer will withhold taxes on your gambling winnings. Generally, the payer is required to provide you with a Form W-2G if you win:
- $600 or more, and at least 300 times the amount of the wager
- $5,000 or more from a poker tournament
- $1,500 or more from a keno game
- $1,200 or more from a bingo game or slot machine
- Any amount if the winnings are subject to federal income tax withholding
Your reportable winnings will be listed in Box 1 of Form W2-G. Remember, you must report your winnings even if you did not receive a Form W2-G.