Question

How do I report gambling winnings and deduct gambling losses?

Answer

Online winnings are fully taxable so you must report gambling winnings, even those that didn’t have tax withheld.

You might be able to deduct gambling losses. So, keep a record so you are able to report gambling winnings and deduct gambling losses with accuracy.

To deduct gambling losses, you must provide records that show the amounts of both your winnings and losses, like:

  • Receipts
  • Tickets
  • Statements

Enter your winnings in the Form W-2G topic or as Other Income. To deduct gambling losses, you must itemize your deductions:

  • Claim your gambling losses as a miscellaneous deduction not subject to the 2% limit.
  • Your losses must be equal or less than the gambling winnings you reported as income.

Related Topics

Related Resources

Bitcoin, Taxes, and the Modern Entrepreneur | H&R Block

Many entrepreneurs find themselves wondering exactly how Bitcoin is taxed. Our H&R Block Tax Pros are prepared to assist self-employed filers with Bitcoin taxation.

The IRS, Bitcoin, and Other Virtual Currencies | H&R Block

Have you found yourself wondering how the IRS classifies Bitcoin? Our tax pros discuss relevant IRS Bitcoin law and notices. Learn more with H&R Block.

What Is Cryptocurrency? | H&R Block

What is Cryptocurrency? Bitcoin, Litecoin, and the like leave many wondering how to classify this new form of investment. Find the answer at H&R Block.

Holiday Bonus Taxes

Congratulations on the Bonus! Learm more about the tax rate at H&R Block - whether you receive a holiday or cash bonus, it will apply to you.