First, unless you're a professional gambler (more on that in a second), you have to itemize in order to deduct gambling losses (itemized deductions are claimed on Schedule A). There are a couple of important catches, though.

(Gambling losses include the actual cost of wagers plus related expenses, such as travel to and from a casino or other gambling establishment.) You'll also have to attach the W-2G form to your return.Īgain, this is what to expect when you plunk down a bet at a casino, racetrack, sports betting parlor, or with some other legally operated gaming business … don't expect your friend in accounting who is running an office pool to withhold taxes (although, technically, they should).ĭid you have a bad night at the blackjack table or pick the wrong horse to win? There's a possible silver lining if you lose a bet or two - your gambling losses might be deductible. It will be subtracted from the tax you owe. When you file your 1040 for the tax year, include the amount withheld by the payer, as federal income tax withheld. You will also have to sign the W-2G stating under penalty of perjury, that the information listed on the form is correct. (Special withholding rules apply for winnings from bingo, keno, slot machines and poker tournaments.) The amount withheld will be listed in Box 4 of the W-2G form you'll receive. Generally, if you win more than $5,000 on a wager, and the payout is at least 300 times the amount of your bet, the IRS requires the payer to withhold 24% of your winnings for income taxes. Gambling Taxes: Withholding Might Be Required But if your bet was just a friendly wager with a friend or you won an office pool … well, don't count on it. In any event, if your bet was with a casino, we're fairly certain you'll get the W-2G. Otherwise, for 2022 winnings, the payer must send the form to you by January 31, 2023. In some cases, you'll get the W-2G on the spot.

If you don't have a SSN, then you'll need a taxpayer identification numbe (TIN).

You also need to provide your Social Security number.

If a W-2G is required, the payer (sports betting parlor, casino, racetrack, lottery, etc.) will need to see two forms of identification. Your reportable winnings will be listed in Box 1 of the W-2G form. The payout doesn't have to be 300 times the wager for these types of winnings).

For poker tournament winnings, the threshold is $5,000.

For keno winnings, the threshold is $1,500.

For bingo and slot machine winnings, the threshold is $1,200.

Generally, you'll receive an IRS Form W-2G if your gambling winnings are at least $600 and the payout is at least 300 times the amount of your wager. Taxes on Gambling Winnings: You Might Get a Form W-2G

Taxes on slot machine winnings