Tax Dictionary – Form W-2G, Certain Gambling Winnings
File this form to report gambling winnings and any federal income tax withheld on those winnings. The requirements for reporting and withholding depend on:
- the type of gambling,
- the amount of the gambling winnings, and
- generally, the ratio of the winnings to the wager.
More from H&R Block
If you receive a Form W-2G for gambling winnings, you must report the full amount of income shown on the W-2G on your tax return. The W-2G will also show any federal and state income tax withheld from your winnings. You cannot report your actual net winnings (winnings less buy in).
However, you can deduct losses up to the amount of your winnings. You can itemize losses on your Schedule A, if you have receipts or other documentation to prove your losses. You cannot show a net loss on your tax return from gambling.
If you receive a W-2G and do not report the income on your tax return, the IRS will likely send you a CP2000, Underreported Income notice. This IRS notice will propose additional tax, penalties and interest on the unreported gambling winnings and any other unreported income.
Learn more about notice LT26, why you received it, and how to handle an IRS LT26 notice with help from the tax experts at H&R Block.
Learn more about notice CP516, why you received it, and how to handle an IRS CP516 notice with help from the tax experts at H&R Block.
Learn more about letter 168C, why you received the letter, and how to handle an IRS bill for unpaid tax with help from the tax experts at H&R Block.
Learn about IRS Notice CP87B, why you received it, and how to verify a dependent on your tax return. Get tax help from the tax experts at H&R Block.