Gambling Winnings & Losses
The most frequently asked tax questions related to Gambling Winnings & Losses
Are my gambling winnings from the lottery subject to backup withholding ?
Asked Friday, October 27, 2000 by an anonymous userCPA Answer:
Generally, backup withholding applies to slot machine winnings and bingo for winnings of $1,200 or more. The amount of the winnings and withholding will be reported on Form W-2G.
Are my gambling winnings from the slot machines subject to backup withholding ?
Asked Friday, October 27, 2000 by an anonymous userCPA Answer:
If you do not provide your taxpayer identification number to the payer, the payer will not withhold tax. Winnings from slot machines, bingo or keno are not subject to the 28% income tax withholding rules. If you do not provide your taxpayer identification number to the payer, the payer will withhold tax at the 31% backup withholding rate.
Will my Gambling winnings of $700 be reported to the IRS ?
Asked Friday, October 27, 2000 by an anonymous userCPA Answer:
Generally, gambling winnings are reported by the payer to the IRS on Form W-2G if the amount is $600 or more and at least 300 times the amount of the wager. The payer has the option of taking into account the wager in applying the $600 test.
Will the $1,000 I won at Keno be reported to the IRS ?
Asked Friday, October 27, 2000 by an anonymous userCPA Answer:
Generally, Keno winnings are reported on Form W-2G to the IRS if they are $1,500 or more reduced by the wager amount.
Is the $1,000 I won on the slot machines in Las Vegas reportable to the IRS ?
Asked Friday, October 27, 2000 by an anonymous userCPA Answer:
Generally, slot machine winnings are reported on Form W-2G by the payer if the winnings are $1,200 or more.
Is the $300 I won in a charity raffle taxable?
Asked Thursday, October 19, 2000 by an anonymous userCPA Answer:
Money won in a charity raffle is considered gambling winnings and is fully taxable and reportable on your tax return. It it should be indicated on IRS Form 1040, line 21 as other income.
Is the $10,000 prize I won as a game show contestant taxable?
Asked Friday, September 22, 2000 by an anonymous userCPA Answer:
Yes. A prize or award of merchandise is taxable at its fair market value. In general, the FMV would be the amount a person would receive upon resale to the general public.
There is an exception when prizes and awards are non-taxable. In general, the exception applies when the award or prize is in recognition of charitable, religious, educational, scientific, literary, civic or artistic achievements.
There are other criteria involved. Speak to your local CPA for the taxability of the prize or award won.
There is an exception when prizes and awards are non-taxable. In general, the exception applies when the award or prize is in recognition of charitable, religious, educational, scientific, literary, civic or artistic achievements.
There are other criteria involved. Speak to your local CPA for the taxability of the prize or award won.
Is the T.V. I won in a Little League raffle taxable?
Asked Friday, September 22, 2000 by an anonymous userCPA Answer:
Yes. Raffle, lottery and sweepstakes winnings are taxable as any other income on your tax return. Generally the amount reported will represent the prize's fair market value. The costs of the raffle, lottery or sweepstake tickets
(to the extent of the winnings)are deductible as a Miscellaneous itemized deduction not subject to the 2 % limitation.
Are my gambling winnings that were reported on Form W-2G fully taxable ?
Asked Monday, September 11, 2000 by an anonymous userCPA Answer:
Yes. You must report the total amount of your gambling winnings from Form W-2G as miscellaneous income on IRS Form 1040 page 1. However, you are allowed to deduct gambling losses up to the amount of the winnings as another itemized deduction on IRS Schedule A.