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

Farmer’s Market Tax Tips

If you are selling items at a farmer's market, learn how to file your taxes with H&R Block. From cash income to bartering, these tax tips will help.

Taxes in the Gig Economy

The gig economy and taxes go hand-in-hand. If gig work is your primary form of income, review these important tax tips from our H&R Block tax professionals.

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.

Bitcoin Income: Exploring Capital Gains & Stock Value | H&R Block

Have you recently earned Bitcoin income from rising stock value? Explore the rules surrounding cryptocurrency-sourced capital gains and losses with H&R Block.