How Do I Report Casino Winnings On My Taxes

The information in this article is up to date through tax year 2019 (taxes filed in 2020).

Every year, people flock to casinos in hopes of hitting it big. And since sports betting has been legalized, more people are engaging in gambling than before.

One thing to be aware of, though, is that certain winnings are taxable and are reported on IRS Form W-2 G. This document outlines your gambling winnings from a specific establishment. They should prepare the form to send to you and the IRS.

Many people seek to avoid paying taxes on as many things as possible, including gambling winnings. However, gambling winnings are considered a taxable income and must be reported when filing your taxes. All cash prizes, in addition to the value of other winnings, are taxable by the federal, and sometimes, state governments. If you've ever won a jackpot in Las Vegas, you probably know that your excitement diminishes at least a little when the casino throws a W-2G tax form in your face. In fact, if you don’t provide your social security number, the casino will automatically withhold up to 30% of your winnings. The same goes for lottery and horse racing wins above. Casinos are required to report gambling winnings if they exceed a certain limit ($1,200 of slot machine winnings for example). Gambling winnings get reported on the first page of your tax return on line 21.

How do I get my Form W-2 G?

It’s the gambling establishment’s responsibility to fill out and submit Form W-2 G to the IRS. The copy that you receive is for you to report on your tax return. If you haven’t received your W-2 G or you lost it, contact the gambling institution to get it reissued, or contact the IRS directly since they will already have a copy.

Casino Winnings And Losses Taxes

Do I have to pay tax on my winnings?

Only winnings above a certain amount in certain games are reported on IRS form W-2 G. It is important to understand that “winnings” refer to the net amount. So, if you wager $1,000 and win $2,000, your winnings are $1,000.

Only winnings above a certain amount from specific games will be reported on form W-2 G. Those include:

• Slot machine and bingo winnings of $1,000
• Keno winnings equal to or greater than $1,500.
• Pokertournament winnings exceeding $5,000
• Any lottery or sweepstakes winnings over $600
• Any other gambling activity in which you won 300 times the wager

Are winnings withheld for taxes?

This simple question, like most tax-related inquiries, has a complicated answer. Gambling establishments withhold 25% of winnings for individuals who have a Social Security number on file and 28% for all others. Since these winnings are included in taxable income, the individual’s tax bracket ultimately determines how much is withheld.

Can I deduct gambling losses?

Taxes On Casino Winnings Calculator

Yes, losses can be deducted – although you won’t receive IRS form W-2 G outlining losses. Keep records of your wagers and losses. They will be reported on Form 1040, Schedule A as “Other Itemized Deductions.” Be aware, though, that the number of losses which are deductible cannot exceed the number of winnings reported on your tax return.