How Are Gambling Winnings Taxed?

Income and Investments Adobe RGB

The article below is up to date based on the latest tax laws. It is accurate for your 2019 taxes (filed in 2020) and 2018 taxes, which should be filed by the April 15th, 2019 (or October 2019 with filed extension) deadline.

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 reporting gambling winnings:

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
  • $5,000 or more in poker tournament winnings
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 25 percent off your winnings for the IRS 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, you still technically have to report it (even if the casino didn’t). 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.

*Note, under the new tax reform law, the gambling loss limitation was modified. Prior to the new 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.
Don’t worry about knowing these and other tax laws. TurboTax will ask you simple questions and give you the tax credits and deductions you are eligible for based on your answers. If you still have questions at tax time, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. TurboTax Live CPAs and Enrolled Agents are available in English and Spanish and can also review, sign, and file your tax return.

Comments (486) Leave your comment

  1. We are residents of NY. My husband won $2,078 at a Pa casino last spring, we had the taxes taken out on the spot and we were given a W2-G. We understand we are entitled to $109 back but don’t know how to claim it. I use turbo tax for NY and it let me pay $40 for the Pa software but we are clueless what to do. When I click through I see it says report gambling information so I assume that is the spot we need to do this? It says amounts reported on W-G2 which is what we were given and shows the $2,078 listed there and after that we are lost. Mary

  2. Hi I won 2000 in a jackpot in February and I had them take the taxes out of it they gave me a form that I lost but would I have to file that on my taxes

  3. My partner won a power ball in October of 50,000 taxes were already taken out. So he got 37,000. He also has a full time job, and SS monthly. He brings in about 3,200 per month with SS and pay check. How much does he need to pay in taxes.. He is saying he owne.. First I thought SS was not taxable. Should we owe taxes.. He also has started a home based business that is operating at a loss.

  4. if you win $10000 at the Black Jack Table and then turn around and lose $9000 at the Black Jack Table. Do you only show your winnings as $1000. Or do you have to claim your gross winnings. Same question for slots.

    1. Two comments: First is that Slots and Bingo are treated very unfairly compared to all other forms of gambling. They are the gambling of choice for many seniors and other middle income Americans. Second the requirement to include winnings as part of income, and therefore Adjusted Gross Income, could impact taxing social security payments and deductibility of medical expenses is also burdensome. The idea that one can deduct losses if deductions are itemized adds another insult because it means that gambling wins up to the amount of the standard deduction would be taxed especially for renters who may have few other deductions.
      The obvious and easy solution to this is for the IRS to allow the deduction of losses as an adjustment to income, along with the many other adjustments, and keep it out of the AGI.
      This issue needs a “champion” to push it thru the IRS.
      THANKS, HANK

      1. I agree wholeheartedly about the unfairness of how the IRS handles gambling “winnings” when, in fact, the losses more than offset these winnings. The Medicare penalties alone are a 2 year penalty every single month. Perhaps AARP can spearhead or “champion” the cause and lobby against this unfair treatment.

  5. My boyfriend and I were in another state on vacation. We won $10,000 playing blackjack and roulette. I was given a W2-G form where I filled out my social and signed my name. How much will I pay in taxes and how do I report this?

    1. If you were specifically given a W2-G form, of which you should have received a copy of, then you have to report that portion reported as “Gambling Winnings.” You may itemize up to that amount as “Gambling Losses.”

      However, casinos, banks, international flights, and other businesses are required to fill out a form when they either receive or pay out cash amounts totaling $10,000 or more.

      Here’s where the technicality of the law falls in. If you buy in for $5,000, and win $5,000, then your win to “technically” report is $5,000. If later or previously, within the same year, you’ve lost $5,000, then you can itemize losses on Schedule A.

  6. My boyfriend receives disability payments of approximately $22,000 per year. In 2015 he won a $2000 video poker machine jackpot. We live in Nevada so there is no state tax. Does he need to file federal taxes? Thanks.

  7. So I live in illinois and i won a prize bundle and the retail value is 3700 and they’re sending me a check for 1000 to offset taxes they said. Do I have to report it on my taxes? If so do I put 3700 or 1000 as the amount? Also when I get the check I can cash it for myself right? And also can i just pay the tax before even filing for taxes so I don’t have to put it on there or no?

  8. Hello, I lost my job in January 2015 so I only worked for that 1 month for the entire year and my little family has been living off of my tax return. The only other income that I did received for 2015 was two slot machine winnings totally about $2,500. I’m not quite sure how I should file my tax return or if I will have to pay tax or if I will get a refund. I do have a 13 yrs old and a 4 months old. Any help is appreciated. Thank you

  9. Recently, my boyfriend and I won a radio contest, with a prize of 15k. He is the one that claimed it, therefor it would be claimed on his tax form… Here’s where I get lost. He is a disabled VET & gets a disability check each month (non-taxed). Since losing his job in 2012, he hasn’t filed. The 15k will be his only “taxable income” this year, with a property & mortgage tax deduction. I’ve been told different information such as “he falls within the under 20k total income bracket so he won’t have to pay taxes on it”, to “the prize tax is now 33% and almost 5k would be owed”. Is there any information you can give me that would help smooth some of this confusion, out ?
    Thanks

    1. Hi Lauren,
      The $20,300 filing threshold for 2014 was for married filing jointly. The filing threshold for someone who is single like your boyfriend was $10,150 in 2014 so he would need to file, but there is no need to worry he may be eligible for tax credits and deductions that give him a tax refund. He can start his taxes free at TurboTax https://turbotax.intuit.com/
      Thank you,
      Lisa Greene-Lewis

    2. Kinda related, but sorta not, but still a good story! When I was in my 20’s and in between jobs, I won about $9,000 in cash and prizes ($500 cash) and had to pay tax on that. My actual taxable income for the year waiting tables was about $7,000. I even got taxed on the gameshow board game – which I never received!

      Anyway, the solution to it was that I had to determine the actual market value of everything I won and actually received, which dropped the whole thing down to about $3,000 or so. (kinda gave me a new perspective on game show prizes). By getting it down to that level, I think I wound up not having to pay anything, but I found the whole thing to be pretty humorous.

  10. Hi I live in no I won 25000 on a scratcher in ca they sent me a check after withholding 6250 in taxes I earn about 21000 a year I am head of household with 2 dependent will I receive money back or will be paying back

  11. My grandmother won 5000 dollars this year! and then won another $5000 today will she have to pay taxes on that $5000 she won today? Jjoey

  12. I am keeping track of poker table cash winnings at a casino in another state north of here. I live in Kentucky. I am currently up $1600 since I started honestly attempting to gain additional income this way. My main source of income is approx $67k/yr as a single parent of two kids.

    The casino does not report any of my winnings and I do not put any of these winnings in my bank so should I claim these? Will the government even find these winnings? What are my chances of getting caught?

    1. If you don’t have to fill out a tax form, don’t worry about reporting. Also, don’t go to the window with more than 3k, or the casino might report.

  13. I am 100 percent disabled and I get my monthly check from SS, on 10/31/2014, I went with family to the casino for my birthday and was playing slots on one machine I won $1,293.00 and on another machine $1,217.22 I am confused because I never have filed income tax while on disability due to that being my only income. So should I file a tax return because of these two wins? On the W-2G’s it says there was no income tax withheld on either one. Please help me to understand so that I don’t get in any trouble with the IRS…
    Thanks,
    April Schultz

  14. I won a BINGO game on the Cash Ball. Are these two cash amounts to be combined on one W-2G or are they considered two separate payouts?

  15. James, I live in a community property state (Texas). Are gambling winnings community income or do they belong to the individual. I want ti file married, separately, and need to know where they go.
    Thanks!

  16. Hi my name is Chris I don’t feel it fair tax system.As am a single parent and make around $70 k a yr I love to play the horse part time,I do play 4 days a week after work so I should be considered a professional gambler ,,I win about $25 k a year but give most of it back,I can’t get to the $9100 thresh hold so the always lump it on to my gross and tax me to the fullest.Even though I have win/loss showing am not making any money,Why cant we get a break and just call it even?

  17. I won $ 750 in a slot machine in NY. I claimed the money on my federal form. Do I also have to file a state form to claim this money. I never have to file a claim a state form because my pension is federal.

    1. Laura, the filing requirements at the NY Department of Revenue website include:

      You must file a New York State resident return if you meet any of
      the following conditions:
      • You have to file a federal return.
      • You did not have to file a federal return but your federal
      adjusted gross income for 2014 plus New York additions (see
      page 15) was more than $4,000 ($3,100 if you are single and
      can be claimed as a dependent on another taxpayer’s federal
      return).

      You did not tell us why you filed a Federal return. Unless you post more information, I can only guess you filed to get back your withholding on W2g for the $750 slot machine win, or that your pension is taxable on your Federal return.

      That said, am I right to say that your Federal AGI was $750?

      If yes, then I believe we can fit your situation into the NY criteria above:

      1) You were not required to file a Federal return. (You did only to get back your withholding on the slot win.)

      2) Your Federal AGI, plus NY additions, was less than $4000. (I believe you are all clear on the NY additions thing.)

      Answer: Probably Not Required To File – Too little information given by Laura

      Otherwise, if you were required to file a Federal return, then the NY instructions state that you have to file a NY State return.

      I believe a phone call to the NY Department of Revenue at
      518-457-5181
      will get you the definitive answer.

      New York Extended Income Tax Call Center hours through April 15 (518-457-5181):

      Monday – Friday: 8:30 a.m. – 7:30 p.m.

      Saturday: 8:30 a.m. – 3:00 p.m.

      April 15: 8:30 a.m. – 8:00 p.m.

      James

    1. Dear Walter,

      Need to know your total taxable income in order to know at what rate the $2500 will be taxed.

      California has a maximum tax rate for single persons of 12.3% for 2014.

      The maximum Federal tax rate for single persons is 39.6 % for 2014.

  18. I am a resident of New York. I won and was paid out a prize of just over 10000 in a Pennsylvania casino. I received a 1099-MISC from the casino’s parent company in Nevada. How do I enter this correctly in TurboTax to calculate the correct state(s) taxes?

    1. Consider calling TurboTax support, and asking them how to file both a New York tax return and a Pennsylvania tax return.

      According to the PA Department of Revenue site, you are required to file a PA state return, because you had more than $33 in gross Pennsylvania-taxable income:

      “The following taxpayers must file a Pennsylvania personal income tax return-
      A. Every resident, part-year resident or nonresident individual earning,
      receiving and realizing more than $33 in gross Pennsylvania-taxable income for their taxable year beginning on or after Jan. 1, 2004 ($35 for taxable years beginning on or after Jan. 1, 1993 and ending Dec. 31, 2003), even if no tax is due (e.g., when an employee receives compensation where tax is withheld
      ). Refer to Pennsylvania Personal Income Tax (PA PIT) Guide, Chapter 7, Gross Compensation. ”

      Gambling or Lottery Winnings:
      Pennsylvania taxes
      nonresidents on gambling and lottery winnings by reason of a wager
      placed in this Commonwealth, the conduct of a game of chance or other gambling
      activity located in this Commonwealth or the redemption of a lottery prize from a lottery conducted in this Commonwealth, other than prizes of the Pennsylvania State Lottery.

      More from the PA Department of Revenue site:

      PA Schedule T
      Line 8 – Gambling and Lottery Winnings

      PA Law imposes its income tax on nonresidents on all gambling and lottery winnings from PA sources, except prizes from playing the Pennsylvania State Lottery.

      Gambling and lottery winnings include cash, the value of property (automobiles, jewelry, electronic devices, appliances, clothes, etc.), the value of the use of property (trips, vacations, airline tickets, cruise, etc.), and other items of value. You may only deduct your costs of gambling, wagering, betting, and playing lotteries from your winnings. You may not deduct any expenses (programs, tip sheets, travel, meals, lodging, etc.) that you incurred to take part in gambling, wagering, betting, and lottery activities.

      IMPORTANT: You may not deduct the cost of PA State Lottery tickets from other PA taxable gambling and lottery winnings.

      END

      James

  19. I am a resident of New York. I was paid out a prize of just over 10000 in a Pennsylvania casino. I received a 1099-MISC from the casino’s parent company in Nevada. How do I enter/pay pay the correct state taxes in TurboTax?

  20. Hello,
    I live in Maryland and I am a full time college student. I do not have a job but I won the lottery twice for $5000 totaling $10,000. How do I file that $10K if I am unemployed and don’t have no employment income to file. I don’t pay for college at all ,scholarships paid for my education.

    1. Hi Pam.

      First item to consider is whether your parents or someone else is claiming you as a dependent on their tax return. Then you should probably coordinate with them on filing your own tax return. This comes up often for full-time college students.

      You don’t want to claim your own personal exemption if someone is declaring you as a dependent on their tax return.

      I am going to assume that you are on your own. You should have one or two Form W2gs from the lottery, showing that you won a total of $10,000.

      The software will have a place to enter the W2g information. The total of $10,000 should then appear on Line 21 of your Federal Form 1040 as Gambling Winnings.

      Note that if this is your only source of taxable income for the year, then you shouldn’t owe any Federal income tax. However, you might owe Maryland state income tax. (I don’t have the time to look this up for you this week.)

      James

      1. Thanks James for getting back to me and my parents do file me on their taxes, so I am not independent. We didn’t know that you can file income taxes if your only source of income was lottery winnings. So should I still file taxes or is there another way to report my lottery winnings. Thanks

      2. Pam, probably the main reason to file a tax return is to get back the withholding tax withheld by the lottery on your W2g….if there is withholding tax for your lottery wins. And Maryland may require you to file a state income tax return for these lottery winnings.

      3. Does anyone know about huge Bingo winnings that are held at local fire departments in md. I am from PA but travel to this Bingo for the last 3 months. The jackpot is up to $20,000.
        How do you claim taxes on your winnings. I have never won bingo of that amount before. Usally I would win back what I paid to play the game. Just curious.

        Thanks
        Michele Grubbs

  21. How do gambling-related expenses factor in? For example, if I fly from NYC to Las Vegas and win $5,000 that I then report as additional income, would I also be able to deduct the travel & lodging expenses? That’s what I do for any of my business trips so this seems like it should be treated the same way.

    1. Hi LJ,
      Unfortunately you can not deduct travel & lodging expenses related to gambling. You may be able to deduct your losses up to your winnings if you itemize your tax deductions. TurboTax will guide you through deducting your losses.
      Thank you,
      Lisa Greene-Lewis

  22. I’m a tourist from Europe.Come to US once a year.I remember,about 12-14 years ago,i used to win $6000-$7000 a night from blackjack.(Not every night,relax…:-) ) Both, in Atlantic City and Vegas.Never had any problems cashing the chips out.Never heard about taxes on my winning money.Never filled up any forms.Maybe (don’t remember),the cashier asked me for my id,which was my passport,but i guess,that was just the standard procedure.But other than that – nada!……Now,i understand a lot of things changed since then…for bad……………My (and tons of other tourists,who play) questions are : 1.Do i need to have any AMERICAN id today,to be able to GET THE WINNING MONEY? (Nobody is gonna ask me any questions,while i’m putting my money on the blackjack table,i’m sure). 2.From the above article,i understood that blackjack is NOT considered taxable?Or i got it wrong? 3.If “yes”,from which winning amount (and up)? 4. Am i going to need to fill some forms in case of winning,despite my tourist status? (What about millions of japanese tourists,who adore casinos?What about our friends from South America,who barely have ANY status?Are they allowed to get their winning money?)…Or i can simply and calmly take the casinos out of my schedule today,in 2015..? Thanks for the response.

    1. 1) If you stay under the reporting threshold, then you should be able to cash out your Blackjack winnings at the window in Las Vegas or Atlantic City without having to fill out any paperwork or show ID. You can request to meet with the appropriate casino manager in order to have them explain the casino’s rules for withholding of taxes for their different games for US citizens, and foreign tourists. Note that the casino manager is not going to give you any tax advice, and is trained not to do so.

      2) In some countries, Blackjack winnings are not taxable. You didn’t tell us what country you are from. That is a key component of giving you a better answer. Your country may have a tax treaty with the United States that makes it easier for you to avoid withholding taxes on your winnings at a US casino.

      a. A US citizen must declare all Blackjack winnings on his tax return from each winning session of Blackjack.
      b. A foreign tourist may not owe US income tax on his US casino Blackjack winnings.

      3) This is our tax season. I don’t have time to look this up. Please ask the casino manager.

      4) Here is just a general answer. Your situation usually requires a tax person knowledgeable in this very specific area .

      Each type of casino game has its own threshold for withholding of part of the winnings for US Federal or state income tax. If you hit the threshold for that game, then you will have to fill out a tax form, and the casino will withhold part of your winnings. For foreign tourists, the figure seems to be 30% of the win.

      Depending on what country you live in, there are ways for you to fill out paperwork, or US tax forms, and get the whole 30% back. For example, Canada has firms that specialize in getting this 30% back for a fee.

      If your country has a treaty with the US, then you may be able to fill out paperwork at the US casino that then allows the casino to give you 100% of your win right on the spot.

      5) Before you take the casinos off of your schedule, consider making them work for you in order to get your business. Simply contact the casino you are going to visit, and ask the management to give you all of the information that they provide concerning income withholding for a person visiting from your country. Tell them you do not wish to have the 30% withheld from any reportable winnings, and what procedure do they have in place for you to legally do this.

  23. I received W2-G’s from two different states. I live in a state with no income tax. Do I need to file returns in those two states because I won there?

    My losses offset my winnings on my Federal Return.

    1. Depends on what the two states are. Even though you live in a state with no income tax, sometimes you do have to file state returns with other states.

      Some states charge a flat tax on gambling winnings, and some do not allow one to deduct gambling losses from gambling winnings on the state return.

  24. I’m married and filed jointly with two dependents. We made $90k income, won about $30k in slot and our win/loss statements show a losses of $32k. My question is how much taxes will we owed? Thank you

    1. Christine, for a more accurate answer, you would need to please share a lot more information, including information about the dependents. When there is little information in a question, I will sometimes run the numbers to get a very rough estimate.

      Married Filing Jointly with two dependents. Income 90k ( Assuming that the 32k in gambling losses will hold up on audit, and that the 90k goes on Line 7 of Form 1040.) Here goes:

      FORM 1040:

      Line 7: $90,000
      Line 38: $90,000
      Line 40, Standard Deduct. $12,400
      Line 42, four exemptions: $15,800
      Line 43, Taxable Income: $61,800

      Line 44: Tax…………………$8,359

      Hope this helps,

      James

      .

  25. I won$20.000 on a scratcher ticket in California I got $ 15.000 this is the only income that came in this year am I going have to file on it still an I going have to pay more or will I get any of that back on the w2g on federal

    1. You are required to file a Federal return because the income is more than the general filing requirement of $10,150 for a single person.

      Federal income tax from the tax table should be $1,020.

      California generally does not tax California Lottery winnings for California residents. Don’t know about out-of-state residents. Also do not know if you are required to file a California state return.

  26. for I got my money. And now I have my w-2g form from them. And my question is is their any one out there knows petty much of what I might get back on it it’s only $4999 on the federal 

    1. Total Income Line 21 of the Form 1040………………………..$20,000

      Standard Deduction………………………………………………….. -6200

      Personal Exemption………………………………………………….. -3950

      Total Taxable Income…………………………………………………$ 9,850

      Tax Due from 2014 Tax Table……………………………………..$ 1,028

      Amount withheld on W2-G………………………………………….. -4999

      Refund Due Taxpayer……………………………$ 3,971

      1. Do I get any of that back I wasn’t going to file on it cuz I didn’t know that I could some one told me that I could do that why I put that on here to find out that would be all my income for that year

  27. I have only been going to a casino since Sept. 2014 and on slot machines I have won a little over $27.000 by end of Dec. No taxes were taken out. I live in Maine, a heavy tax state. My AGI is form$40,000. I have all the W-6 forms to complete and file with my return. I do not understand how to read the win/loss statement. If Fed. tax is %25 and Maine tax is about same will I owe half of all winnings? How much will I need to have lost to offset major tax bill? Thanks in advance for any information.
    Jan

  28. Why doesn’t the IRS allow you to claim gambling losses on the short form? I’m retired, own my own home, have no medical issues and file the short form. Long form people get a break here.

    1. Hi Kim O.

      Yes, provided that you are required to file a tax return, and I recommend that you do, you will report the $3700 as income on Line 21 of Form 1040.

  29. The major downside of gambling at all when you break even, is that if you win large jackpots and have a corresponding loss (so, you essentially break even), you taxable income is considered to include your winnings only (not your losses figured in). So, there are major tax implications of winning lots and then breaking even because your taxable income is much higher. This affects your ability to qualify for other deductions such as rental property losses, education, etc. I found this out the hard way.

    1. Steve, the two places in your post where you use the term “taxable income,” I believe you meant to say Adjusted Gross Income (AGI).

      On Form 1040, gambling winnings are totaled on Line 21, and that amount can increase total AGI, reported on Line 37, and again reported on Line 38.

      It is the increase in AGI that can negatively affect many tax credits and tax deductions.

      Taxable Income is determined on page 2 of the 1040, where we are able to deduct the large gambling losses by itemizing them on Schedule A. (Provided we have an acceptable gambling diary detailing wins and losses for the year.)

      We arrive at Taxable Income on Line 43 of Form 1040. And we have to watch out for the Alternative Minimum Tax on Line 45.

  30. HI–My taxable income for the year in MA was 43000. My spouse was 800. The Federal withheld for mine was 3638. I also have approx 16k in gambling winnings according to WG form. Will I have to owe money or get a refund? I also have 1 dependent.

    1. Dianna, would like to know all the information about the dependent for a more accurate answer. Also, do not know your definition of taxable income. TurboTax should get you to the exact answer after you enter all of your information.

      I will give you a very rough answer, so that you have an idea of the maximum in Federal income tax that you will owe. NOTE! I cannot figure your MA state income tax at this time.

      Married Filing Jointly with one dependent. Income 43k wife, and $800 husband, for a total of $43,800. Gambling winnings of 16k. Here goes:

      FORM 1040:

      Line 7: Wages, sal., tips, etc..$43,800
      Line 21, Gambling winnings: $16,000
      Line 38, AGI: ………………….. $59,800
      Line 40, Standard Deduct. – $12,400
      Line 42, three exemptions: – $11,850

      Line 43, Taxable Income: $35,550

      Line 44: Tax…………………. $4,429

      Hope this helps,

      James

  31. I am a poker player and won a drawing for $4700 while playing poker. This was the only significant win inside of drawings, jackpots, etc. for the year. Since, it’s poker, does this fall under the $5000 threshold? And will I need to report this?

    1. Joe, the threshold for a drawing is $600. You should receive a 1099 from the casino soon for the $4700. You are required to report the $4700.

      In addition, you are required to report all gambling winnings, whether or not they meet a threshold. The thresholds are for entities such as casinos, racetracks, bingo halls, etc., guiding them on what they are required to report about a player’s win, and how much they are required to withhold from each type of win.

      Prizes received with no wager (Drawings, Promotions, Bad Beat, Poker, etc.) have a $600 threshold for reporting. See the Gaming Withholding and Reporting Threshold chart in IRS Publication 3908 for an idea of gambling withholding.

    1. Kellie, the answer depends on your overall tax rate.

      If the entity that awarded you the system does not send you a W2-G, then you can manually enter the $2000 on Line 21 of your Form 1040 in TurboTax, and see how much that increases your tax.

      Depending on your total income, you could owe anywhere from $0 to about $800 in Federal income tax.

  32. I live in Pennsylvania and won $30,000 on a scratch off ticket. I received a check for $22,500. I have losing tickets totaling $38,000. I am married filing jointly with an AGI of roughly $120,000. Am I due a refund for the taxes paid on the winning ticket?

    1. Tom, based on the information you have given, you will receive a refund of the Federal income tax withheld for the scratch off win. We have to assume that you had the proper amount of income tax withheld from the $120,000 in AGI, and that total does not include the $30,000 win.

      Of the $38,000 losing ticket total, you will only be able to deduct $30,000.

      Just having the losing tickets may not be enough. You should have a gambling diary detailing the purchases of those tickets. A gambling diary should include the following, and you may be allowed to tailor entries to cover your ticket purchases:

      – Date and type of gambling activity or wager placed
      – Name and address of the establishment at which you were gambling
      – Names of any other persons who accompanied you while you were gambling
      – Amount you won or lost

      An example might be:

      Feb. 14, 2015:
      Purchased 20 “Super Slam” $1 scratch off lottery tickets at 9:00 PM.
      Circus Liquor Store, 5858 Sunset Blvd., Los Angeles CA 90028
      Jeff Stevens was with me.
      Total won $5. Total lost (20 tickets X $1) $20. (Net loss for session is $15.)

      Note that I do not know for a fact what the IRS considers a session of scratch off lottery play.

  33. I won $10,000 in July on the Kansas powerball. When I picked up my check it was for $7,000. They had taken out $2500.00 for federal and $500 for state. My question is how do I report this on my taxes? I never received a w-2g for the winnings. I’m just really confused on how to do this. Do I file it separate or with my w-2 from my work?

    1. The Powerball probably has a little more time to send you your W2-G for 2014. If you do not receive one by the end of February, then contact them, and ask for one. Otherwise, around April 1, you or your tax person can check your Wage and Income statement at the IRS website, and see if the W2-G has posted to it.

    2. Jenny, you are going to report the $10,000 on Line 21 of your Form 1040. That is where the W2-G amounts go.

      Your W2 from work should end up on Line 7.

      The Federal income tax withheld from your W2 at work, and from your W2-G (the $2500) will total together on Line 64 of Form 1040.

      If you correctly enter the data from the forms in TurboTax, then you should see the correct totals appear on those lines.

      1. So if you win 5000 the state takes out 25% and federal tax out what??? or does the state only take it out it was cash for five but only gave back 4100

  34. Hi I won twice at the Indian casino. Total is $3900.00 and I just started working around August of 2014 and that year I only make $5400.00 Am I gonna owe any money when I file my tax this year?

    1. Rhey, based on the information given, you will owe no Federal income tax.

      Need more information to determine if you owe state income tax, especially what state you file in.

    2. Washington State does not have a state income tax. Also, according to their website, they do not have a separate tax on gambling winnings. Looks as if you will not have to worry about any state tax on the $3900.

    3. Rhey, one last thing. Be sure to determine whether or not you qualify for the Earned Income Credit. TurboTax should help you with this determination.

  35. Hi,
    I live in Canada and I got 3 jackpot in Las Vegas in 2014.
    5083+1272+7145..and they took 30% tax, of course..my 30% tax is 4054..
    I just printed tax information statement.. I won 7414.40 and I lost 3546.76, so.. total I won 3867.64..
    What I want to know is…can I get back whole 30% tax 4054 even though I won 3867.64???
    I lost in 2013, so I got whole 30%tax last year, but,,I just wonder I can get whole tax or not..

    Also I read some article that I can claim my flight,and accomodation fee..is this right??
    Please let me know:)
    Thanks

  36. I live in Texas and go to Winstar Casino (Oklahoma) quite a bit last year and I won only $4863.34 in total that I received W2G. Do I have to file 2 separate returns? One for my 1040ez & one for Form 945? Or can I combine them? And how much do I have to pay taxes on my winnings? I have only a couple of list of my losses/bank statement showing my withdrawals in the casino. Since I only started tracking my losses end of this year.

    1. Hi Dee,
      No you would not file two separate tax returns. Form 945 is used for payors. Your losses cannot be more than your winnings and you have to itemize in order to take them. Not sure if you have enough deductions to itemize(Must be more than $6,200 standard deduction if single, $12,400 if married filing jointly). Also, if you itemize you can’t file 1040EZ.
      Thank you,
      Lisa Greene-Lewis

      1. Lisa,

        Thanks for clarifying. What form do I need to use in order to itemize the deductions?

        I’m using turbo tax website and I’m completely confused since this is my first time to include gambling wins.

        glad to know I don’t have to file 2 separate returns.

    2. Dee, in addition to your Federal tax return, you are also required to file an Oklahoma state nonresident tax return – Form 511NR.

      From the Oklahoma Tax Commission:

      “Every nonresident with Oklahoma source gross income of $1,000 or more is required to file an Oklahoma income tax return.”

      1. I would have to be your tax preparer in order to answer this properly. You can call the Oklahoma tax office, and ask them, or call the TurboTax line, and ask them to guide you through it.

  37. I won 15040.00 this year with no deduction and I make around 20, 000 a year working with 1 dependent how do I file my federal income tax how much will I pay back?

    1. Chan, in general you file Form 1040 and list your $20,000 in earned income on Line 1, and then your gambling income of $15,040 on Line 21. TurboTax should walk you through this.

      If you file as Single with one dependent, then I believe your tax due calculates as follows:

      Total AGI for Lines 37 and 38
      is $35,040. Now subtract your Standard Deduction of $6200, and your two exemptions (one for you plus one for your dependent $3950 + $3950 = $7900).
      The result of $20,940 is your Taxable Income for Line 43.
      From the 2014 Tax Table, your Federal income tax due is $2685.
      A general breakdown of the $2685 is that you are paying $593 in tax on your 20k in earnings, and $2092 on your $15,040 in gambling winnings.

    2. Also Chan, you may qualify to file as Head of Household, and may quality for tax credits because of your dependent, which will make your tax bill less, and may even qualify you for a refund. I believe TurboTax will walk you through the steps necessary to determine your correct filing status, and what tax credits you will receive.

  38. Hello,
    I live in NJ and I have gambled in multiple places. I have a record of winning $35,576.00 in PA and never filled a W2-G. Also a -$7,000 lose in Atlantic City overall. (all documents from casino) This is a net of all wins. I made $7,932.00 in my job, which i Had quit in April to continue my education. I have paid over 16,000 on school tuition s in 2014 alone.How much will I owe in taxes?

  39. Hi, I won 5,000 on slot machine in an Indian reservation casino in CA. This is first time I won an amount this big. Prior to wining I withdrew money from my credit card at the same Indian casino in order to play. I didn’t use casino’s gaming card in the slot machine that I was palying to keep track of how much lost prior to wining the 5000.00; How do I show my losses?. Can I use the credit card withdrawal receipts to offset part of my wining? Please advise

    1. Sue, you show your losses by keeping a gambling diary.

      Your gambling diary should include:

      1) Date and type of gambling activity or wager placed
      2) Name and address of the establishment at which you were gambling
      3) Names of any other persons who accompanied you while you were gambling
      4) Amount you won or lost

      You can deduct your total losses only up to the total amount of your winnings, if you are able to itemize those losses on Schedule A.

      You keep your ATM receipts, and other receipts to support what you have entered in your gambling diary.

      You do not simply take a $500 ATM withdrawal receipt, and claim a $500 gambling loss.

      Finally, I believe you should be using a player’s card to track your play, as doing this will generate a win/loss statement from the casino that will also support your gambling diary.

Leave a Reply