Whether you like to play the ponies, roll the dice or pull the slots, your gambling winnings are taxable. You must report all your gambling income on your tax return. If you\u2019re a casual gambler, odds are good that these basic tax tips can help you at tax time next year:<\/p>\n
1.\u00a0Gambling income.\u00a0<\/strong> Gambling income includes winnings from lotteries, horse racing and casinos. It also includes cash prizes and the fair market value of prizes like cars and trips.<\/p>\n 2.\u00a0Payer tax form.\u00a0<\/strong> If you win, you may get a Form W-2G<\/a>, Certain Gambling Winnings, from the payer. The IRS also gets a copy of the W-2G. The payer issues the form depending on the type of game you played, the amount of your winnings and other factors. You\u2019ll also get the form if the payer withholds taxes from what you won.<\/p>\n 3.\u00a0How to report winnings.<\/strong>\u00a0 You must report all your gambling winnings as income. This is true even if you don\u2019t receive a Form W-2G. You normally report your winnings for the year on your tax return as \u2018other income.\u2019<\/p>\n 4.\u00a0How to deduct losses.\u00a0<\/strong> You can deduct your gambling losses on Schedule A, Itemized Deductions. The amount you can deduct is limited to the amount of the gambling income you report on your return.<\/p>\n 5.\u00a0Keep gambling receipts.\u00a0<\/strong> You should keep track of your wins and losses. This includes keeping items such as a gambling log or diary, receipts, statements or tickets.<\/p>\n For more on this topic see Publications 525, Taxable and Nontaxable Income<\/a>, and 529, Miscellaneous Deductions<\/a>. Both are available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).<\/p>\n Additional IRS Resources:<\/strong><\/p>\n IRS YouTube Videos:<\/strong><\/p>\n <\/em><\/p>\n IRS Podcasts:<\/strong><\/p>\n <\/em><\/p>\n Note. From Issue Number: IRS Tax Tip 2014-03. \u00a0Copyright 2014 by Copyright Holder. Reprinted with permission.<\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Issue Number:\u00a0\u00a0\u00a0\u00a0IRS Summertime Tax Tip 2014-03 Inside This Issue Whether you like to play the ponies, roll the dice or pull the slots, your gambling winnings are taxable. You must report all your gambling income on your tax return. If … Continue reading \n
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