The payer must furnish Form W-2G to you and the IRS if you were paid any of the following: In fact, allowable deductions in 26 U.S.C §165(d) related to wagering are expanded to include transportation and admission fees.īefore you consider hiding that big jackpot from your taxable income, know that some winnings are required to be reported to the Internal Revenue Service. The Tax Cuts and Jobs Act of 2017 eliminated most miscellaneous itemized deductions allowable that are over 2% of adjusted gross income (AGI) in tax years 2018 through 2025, but gambling expenses are preserved. Also, the amount of gambling losses you deduct cannot be more than the amount of gambling income you reported on your return.
If you claim the standard deduction, you cannot deduct any gambling losses. All gambling winnings are recorded on Line 21 (“Other Income”) of your Form 1040 individual tax return.Ĭan you deduct gambling losses? Yes, but ONLY if you itemize your deductions on Schedule A of your Form 1040. The taxable value is generally the cash winnings (minus the wager, bet or buy-in) and the fair market value of tangible property won (e.g. Gambling income includes, but is not limited to, winnings from lotteries, casino, raffles, sweepstakes, horse races and other sports betting. Winnings from gambling of any kind are fully taxable under federal law.
