How do I report gambling winnings and deduct gambling losses?
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 Resources
Find out which states don’t have an income tax from the experts at H&R Block. If you live in a state without income taxes, you aren't required to file a state return.
Learn more about the tax implications of the Traditional, Roth and Spousal IRA from the tax experts at H&R Block.
Up to 50% or even 85% of your Social security benefits are taxable if your “provisional” or total income, as defined by tax law, is above a certain base amount. Your Social Security income may not be taxable at all if your total income is below the base amount.
Learn more about interest income and whether is qualifies as taxable or tax exempt interest income from the tax experts at H&R Block.
