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:
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.
The minimum income amount depends on your filing status and age. In 2017 for example, the minimum for single filing status if under age 65 is $10,400. If your income is below that threshold, you generally do not need to file a federal tax return. Review our full list for other filing statuses and ages.
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