Income and Investments Gambling Winnings Tax (How Much You Will Pay For Winning?) Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Ginita Wall Published Mar 3, 2023 - [Updated Dec 27, 2023] 3 min read Reviewed by Katharina Reekmans, Enrolled Agent Most people don’t think about taxes on their way to a racetrack or casino, but what might seem like nothing more than the chance to win some extra money actually has some tax implications. As is often the case, federal and state governments single out casino winnings for unique taxes of their own. Here is what you need to know about how gambling affects your taxes: How Much You Win Matters It’s important for you to know the thresholds that require income reporting by the payer. Winnings in the following amounts must be reported to the IRS by the payer: $600 or more at a horse track (if that is 300 times your bet) $1,200 or more at a slot machine or bingo game $1,500 or more in keno winnings (minus the amount you bet) $5,000 or more in poker tournament winnings (minus the amount you bet or buy-in price) Get started now All of these require giving the payer your Social Security number, as well as filling out IRS Form W2-G to report the full amount won. In most cases, the casino will take 24 percent off your winnings for IRS gambling taxes before paying you. Not all gambling winnings in the amounts above are subject to IRS Form W2-G. W2-G forms are not required for winnings from table games such as blackjack, craps, baccarat, and roulette, regardless of the amount. Note that this does not mean you are exempt from paying taxes or reporting the winnings on your taxes. Any and all gambling winnings must be reported to the IRS. It only means that you do not have to fill out Form W2-G for these particular table-based games. Reporting Smaller Winnings Even if you do not win as much as the amounts above, you are still legally obligated to claim your winnings at tax-time. You also need to report any awards or prize money you won during the year. Yes, even if you only win $10 sports gambling, you still technically have to report it (even if the casino didn’t). Your gambling income also includes the fair market value of prizes such as cars or trips. Gambling income plus your job income (and any other income) equals your total income. Fortunately, you do not necessarily have to pay taxes on all your winnings. Instead, if you itemize your deductions, you can claim your losses up to the amount of your winnings. But the amount of losses you deduct can’t be more than the amount of gambling income you reported on your tax return. *Note, under the tax reform law, the gambling loss limitation was modified. Prior to the tax reform law, taxpayers’ costs (like transportation and admission fees) could be claimed regardless of winnings. But beginning with the tax year 2018 (the taxes filed in 2019), all expenses in connection with gambling, not just gambling losses, are limited to gambling winnings. What About State Taxes? In addition to federal taxes payable to the IRS, many state governments tax gambling income as well. Each state has its own unique formulas and rules for gambling income, and some levy no gambling taxes at all. Some states charge a flat percentage, while others base the state tax on how much you won. TurboTax Has You Covered Don’t worry about knowing these tax rules. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Get started now Previous Post Tax Benefits Changing for Tax Year 2022 Next Post The Tax Deadline is Approaching: TurboTax Shares What You Need… Written by Ginita Wall More from Ginita Wall 489 responses to “Gambling Winnings Tax (How Much You Will Pay For Winning?)” « Older Comments Newer Comments » i won 20,000 in casino in one state and live in another. they took out federal and state taxes. for which state did they take taxes? and do i get to claim those taxes? Reply Can a college student with a 1098-T use his or her Form w-2g to collect a refund? Reply Hi Shawn, I am not sure how much your education expenses, but you can deduct them and you may possibly get a tax refund. You have to file a tax return since you have a W-2G. You can prepare your taxes with TurboTax for free so you can’t lose. You may get a nice tax refund. Happy filing! Thank you, Lisa Greene-Lewis Reply How do I file my Ca. state return for 2009? I was on dissability the entire year so I have no tax liability for wages earned, however, I have $19,548.00 in casino winnings. With no taxable earned wages can I still show my gambling losses to equal my winnings? Reply Hi Lynn, You still need to prepare your Federal Tax return. Your casino winnings will go on the federal tax return and if you can claim itemized deductions instead of standard deductions you can claim your losses or how much you put spent gambling there. Information from your federal tax return will transfer to your state tax return. TurboTax walks you through the questions necessary to complete your tax return. You can purchase 2009 TurboTax software at https://turbotax.intuit.com/personal-taxes/past-years-products.jsp#tax_year_2009 Hurry and file you only have 3 tax years to claim a tax refund with the IRS. Thank you, Lisa Greene-Lewis Reply I reside in the state of Ohio and won $1500.00 on a slot machine in PA. Will I be liable for any taxes to the State of PA ? Reply Hi I won money on the slots at the airport just before I came home to the UK and the machine stopped once I won and the assisant had to come with 2 others and they taxed me 30% of the win was news to me and a surpise, as I do not live in the US and I am a UK citizen who come I got taxed? I have won before and was never taxed so why this time? my bet was $2 and I won £1200 or ($1198) excluding my stake thanks for your help x Reply I had lost my W-2 forms in a move from one house to another. I didn’t not file the amount I won do to not having the information. Now I have a letter from the IRS telling how much I owe, I want to send the letter back with my losses. What information will I need in the letter? Since all of my losses are not able to be tracked. Reply I sometimes go gambling when out of town on business for my own company. Can I have my company ‘win’ the money if I win? Reply Hi Richard, Unfortunately you have to claim your winnings on your personal taxes. Gambling winnings would not be considered income related to your business purpose. Thank you, Lisa Greene-Lewis Reply hello. if i paid taxes on four slot pay outs (i paid state and federal irs taxes at the casino before being paid do i have to report anything else on other forms come tax time? will i have to pay any more taxes . also i am not claming any losses. thanks for your time? Reply If the casino deducts 25% from the gross winnings before paying you the net. Then how do you get credit for this when filing your end of year 1040 …I don’t see any place on the W2G that says how much was withheld. It only shows the gross amount? Is the casino required to send you a 1099 or something? Reply Hi Robert, Typically the 25% tax will be withheld before you’re paid so you will not see a credit for it. Your winnings are added to any other income you’ve earned on your tax return. You can deduct your losses or the amount you put in to gamble up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply you do NOT get “credit” for 25%, that is something YOU MUST pay to uncle sam if you win unless you overpaid at the time the casino gave you the W-2G(and don’t forget the state too so you still might owe more) Reply I paid 6,000 in taxes for 25% or so for about 15,000 in winnings. I didn’t pay 3,000 on other jackpots. I got about 15 in 4 months! Put it all back though:( Do I get the difference in my tax refund since I paid 6,000 and only didn’t pay 3,000? Or is there a chance I will owe some of the 3,000 I didn’t pay? Reply Hi Brett, It also depends on your other income. You have to include all of your gambling winnings with your other income and then you are taxed at the tax rate of your combined income minus your tax deductions and credits. Without knowing all of your details I can’t say for sure. You can deduct your losses up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply here is what will happens: You OVERPAID ONE of your W-2G(which is good irs WILL refund) BUT and here the catch since YOU DID NOT paid the other ones so now FROM EVERY W-2G that you have you have to pay ALSO the FULL amount 25 % Federal PLUS your State(depending where you live usually from 3 to 5%more), so to make it easy get a calculator and start to enter EVERY JACKPOT FROM THOSE W-2G FORMS that you did NOT paid taxes and see and cross your finger that they don’t add to more of what you ALREADY OVERPAID Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Income and Investments Gambling Winnings Taxes: An Intro Guide Income and Investments Sports Gambling and How Your Winnings are Taxed Income and Investments How Do Game Show Winnings Affect Your Taxes? Tax News How Will You Be Taxed If You Win the Powerball Jackpot? 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i won 20,000 in casino in one state and live in another. they took out federal and state taxes. for which state did they take taxes? and do i get to claim those taxes? Reply
Hi Shawn, I am not sure how much your education expenses, but you can deduct them and you may possibly get a tax refund. You have to file a tax return since you have a W-2G. You can prepare your taxes with TurboTax for free so you can’t lose. You may get a nice tax refund. Happy filing! Thank you, Lisa Greene-Lewis Reply
How do I file my Ca. state return for 2009? I was on dissability the entire year so I have no tax liability for wages earned, however, I have $19,548.00 in casino winnings. With no taxable earned wages can I still show my gambling losses to equal my winnings? Reply
Hi Lynn, You still need to prepare your Federal Tax return. Your casino winnings will go on the federal tax return and if you can claim itemized deductions instead of standard deductions you can claim your losses or how much you put spent gambling there. Information from your federal tax return will transfer to your state tax return. TurboTax walks you through the questions necessary to complete your tax return. You can purchase 2009 TurboTax software at https://turbotax.intuit.com/personal-taxes/past-years-products.jsp#tax_year_2009 Hurry and file you only have 3 tax years to claim a tax refund with the IRS. Thank you, Lisa Greene-Lewis Reply
I reside in the state of Ohio and won $1500.00 on a slot machine in PA. Will I be liable for any taxes to the State of PA ? Reply
Hi I won money on the slots at the airport just before I came home to the UK and the machine stopped once I won and the assisant had to come with 2 others and they taxed me 30% of the win was news to me and a surpise, as I do not live in the US and I am a UK citizen who come I got taxed? I have won before and was never taxed so why this time? my bet was $2 and I won £1200 or ($1198) excluding my stake thanks for your help x Reply
I had lost my W-2 forms in a move from one house to another. I didn’t not file the amount I won do to not having the information. Now I have a letter from the IRS telling how much I owe, I want to send the letter back with my losses. What information will I need in the letter? Since all of my losses are not able to be tracked. Reply
I sometimes go gambling when out of town on business for my own company. Can I have my company ‘win’ the money if I win? Reply
Hi Richard, Unfortunately you have to claim your winnings on your personal taxes. Gambling winnings would not be considered income related to your business purpose. Thank you, Lisa Greene-Lewis Reply
hello. if i paid taxes on four slot pay outs (i paid state and federal irs taxes at the casino before being paid do i have to report anything else on other forms come tax time? will i have to pay any more taxes . also i am not claming any losses. thanks for your time? Reply
If the casino deducts 25% from the gross winnings before paying you the net. Then how do you get credit for this when filing your end of year 1040 …I don’t see any place on the W2G that says how much was withheld. It only shows the gross amount? Is the casino required to send you a 1099 or something? Reply
Hi Robert, Typically the 25% tax will be withheld before you’re paid so you will not see a credit for it. Your winnings are added to any other income you’ve earned on your tax return. You can deduct your losses or the amount you put in to gamble up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply
you do NOT get “credit” for 25%, that is something YOU MUST pay to uncle sam if you win unless you overpaid at the time the casino gave you the W-2G(and don’t forget the state too so you still might owe more) Reply
I paid 6,000 in taxes for 25% or so for about 15,000 in winnings. I didn’t pay 3,000 on other jackpots. I got about 15 in 4 months! Put it all back though:( Do I get the difference in my tax refund since I paid 6,000 and only didn’t pay 3,000? Or is there a chance I will owe some of the 3,000 I didn’t pay? Reply
Hi Brett, It also depends on your other income. You have to include all of your gambling winnings with your other income and then you are taxed at the tax rate of your combined income minus your tax deductions and credits. Without knowing all of your details I can’t say for sure. You can deduct your losses up to your winnings as an itemized deduction. Thank you, Lisa Greene-Lewis Reply
here is what will happens: You OVERPAID ONE of your W-2G(which is good irs WILL refund) BUT and here the catch since YOU DID NOT paid the other ones so now FROM EVERY W-2G that you have you have to pay ALSO the FULL amount 25 % Federal PLUS your State(depending where you live usually from 3 to 5%more), so to make it easy get a calculator and start to enter EVERY JACKPOT FROM THOSE W-2G FORMS that you did NOT paid taxes and see and cross your finger that they don’t add to more of what you ALREADY OVERPAID Reply