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Category: W2's

What is a W-2G? Gambling Winnings and Losses and How to Report

Form W-2G is used to report income and withholding related to gambling. Generally, you will receive a Form W-2G if you receive:

  • $600 or more in gambling winnings and the payout is at least 300 times the amount of the wager (except winnings from bingo, keno, and slot machines);
  • $1,200 or more in gambling winnings from bingo or slot machines;
  • $1,500 or more in proceeds (the amount of winnings less the amount of the wager) from keno; or
  • Any gambling winnings subject to federal income tax withholding.

To view a sample Form W-2G, click here.

Gambling winnings are fully taxable and must be reported on your tax return. Here are the top seven facts the Internal Revenue Service wants you to know about gambling winnings.

  1. Gambling income includes – but is not limited to – winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.
  2. Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G and may have withheld federal income taxes from the payment.
  3. The full amount of your gambling winnings for the year must be reported on line 21 of IRS Form 1040. You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form.
  4. If you itemize deductions, you can deduct your gambling losses for the year on line 28 of Schedule A, Form 1040.
  5. You cannot deduct gambling losses that are more than your winnings.
  6. It is important to keep an accurate diary or similar record of your gambling winnings and losses.
  7. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.

Gambling losses are reported to the taxpayer on Form W2-G (Gambling). To enter Gambling Winnings in our program go to Federal Section > Income (Enter Myself) > Other Income > Gambling Winnings.

 

To enter Gambling Losses in our program go to Federal Section > Deductions (Enter Myself) > Itemized Deductions > Miscellaneous Deductions. Please read the "Learn More" link attached to that entry line, remembering that you cannot deduct losses that are more than your winnings.