Gambling Winnings

Gambling winnings are fully taxable and must reported on your taxes. Gambling income includes but isn’t limited to the following:

• winnings from lotteries
• raffles
• horse races
• casinos
• cash winnings and the fair market value of prizes, such as cars and trips

The payer must issue you a Form W-2G, Certain Gambling Winnings if you receive winnings or if they’re subject to federal income tax withholding. You must report all gambling winnings as “Other Income” on your federal tax return (use Schedule 1), including winnings not reported on your W-2G.

Gambling Losses

You may deduct gambling losses only if you itemize your deductions which is reported on Schedule A. However, the amount of losses can’t exceed the gambling income you report on your return.

This entry was posted on Friday, November 13th, 2020 at 1:11 am and is filed under Income. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.