<=
span
lang=3DEN style=3D'font-size:18.0pt;mso-ansi-language:EN'>Gambling Income a=
nd
Expenses
Gambling
winnings are fully taxable and must be reported on your tax return. You must
file Form 1040 and include all of your winnings on line 21. Gambling income
includes, but is not limited to, winnings from lotteries, raffles, horse ra=
ces,
and casinos. It includes cash winnings and also the fair market value of pr=
izes
such as cars and trips.
A
payer is required to issue you a Form W-2G if you receive $600 or more in
gambling winnings or if you have any gambling winnings subject to Federal
income tax withholding. The $600 amount is increased to $ 1,200 for winnings
from bingo or slot machines and to $ 1,500 for winning from Keno.
If you
have won more than $5,000, the payer generally is required to withhold 25% =
of
the proceeds for Federal Income Tax. If you did not provide your social
security number the payer may have to withhold 28%.
You
may deduct gambling losses only if you itemize deductions. However, the amo=
unt
of losses you deduct may not be more than the amount of gambling income you
have reported on your return. It is important to keep an accurate diary or
similar record of your gambling winnings and losses. 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.