How to File Taxes on Gambling Winnings
A comprehensive guide to reporting gambling winnings on your taxes reveals essential steps that could save you from costly IRS penalties.

How to Manage Tax on Gambling Money

Needed Tax Forms and Documents
Gambling wins must be shown on Form 1040 Schedule 1 of your federal tax form. The IRS needs exact papers for big wins using Form W-2G:
- Slot machines/bingo: Wins over $1,200
- Keno: Wins over $1,500
- Poker tournaments: Prizes over $5,000 Visit more Website
Records You Must Keep
Maintain detailed records of all your bets, which include:
- The date of each game
- Where you played
- How much you won
- Loss documents
- Receipts of payment
- Bank statements
- Tickets from games
How to Count Gambling Losses
Schedule A lists let you deduct losses with these key points:
- Losses can only reduce the reported wins
- Total deductions can’t exceed what you won
- You must have proper loss documents
- Pro gamblers report on Schedule C
Taxes in Different States
State gambling tax laws vary:
- Different rules for deductions
- Forms needed for your state
- Varying tax rates
- Local regulations
- Rules for non-residents on gambling money
When to File Taxes
Submit forms on gambling wins by:
- April 15 for federal forms
- Quarterly if required
- Deadlines specific to your state
- If an extension is required
Seek help from tax experts for complex gambling issues and state-specific advice.
Understand Gambling Money for Tax Purposes
Types of Taxable Gambling Money
All gambling wins must be reported as income on your tax forms. This includes wins from:
- Games and slots in casinos
- Lottery prizes
- Bets at race tracks
- Wagers with friends
- Non-cash prizes (like cars, trips, gadgets)
When You Must Report It

Mandatory reporting rules require venues that offer gambling to issue Form W-2G for:
- Wins from slot machine/bingo of $1,200 or more
- Keno wins of $1,500 or more
- Prizes from poker games of $5,000 or more
Additional Ways to Receive Gambling Money
All gambling earnings must be reported, this includes:
- Money from fantasy sports
- Workplace pool winnings
- Cash from casual bets
- Contest earnings
- Gains from sports betting
Tax Guidelines for Professional Gamblers
Professional gamblers need to report winnings specifically:
- They must list wins as self-earned income
- Include earnings on Schedule C
- Casual gamblers report on Schedule 1
Regulations for Free Items from Casinos
Comps from casinos are not deemed as gambling money unless:
- Given for placing bets
- Exchanged for gambling actions
- Used to place further bets
Essential Documents for Gambling Taxes
Documents Needed for Gambling
Correct documents are crucial for accurate tax reporting.
Maintain comprehensive records such as:
- Tickets and receipts
- Casino records
- Form W-2G documents
Guidelines for Issuing W-2G
- Slot machines/bingo: Wins of $1,200 and up
- Keno: Wins of $1,500 and up
- Poker tournaments: Wins of $5,000 and up
Maintain Complete Gambling Records
A comprehensive gambling journal should contain:
- Date and location of each bet
- Kind of gambling activity
- Witness details
- Amounts won or lost
Financial Proof Needed
- Bank statements detailing ATM withdrawals from gambling sites
- Credit card statements
- Canceled checks
- Multiple W-2G form copies How AI Is Shaping the Future of Online Betting
Requirements for Professional Gamblers
Professional gamblers must keep extra documents:
- Records on how they operate as a business
- Proof of continual learning and improvement
- Evidence of regular participation
- Documents affirming their professional status
Documentation Needed as a Professional
- History in competitive events
- Learning certificates from gaming courses
- Evidence of consistent income earned