This includes the fair market value of any prize won, such as a car or vacation. It should also be noted that other gambling winnings not reported are also taxable. Winnings are subject to federal income tax withholding.
Winnings (except for bingo, slot machines, keno, or poker) reduced by the wager are $600 or more, or at least 300 times the wager.Winnings (reduced by the buy-in) exceed $5,000 from a poker game.Winnings (reduced by the wager) are $1,500 or more from a keno game.Winnings (not reduced by the wager) are $1,200 or more from bingo or a slot machine.If the payer does report your winnings to the IRS, they will do it through Form W-2G, Certain Gambling Winnings if: This is true whether the payer reports the winnings or not. Gambling Winnings are TaxableĪny winnings you receive from gambling, whether small or large, are considered taxable income and must be reported to the IRS. In this article, we’ll break down how gambling winnings are taxed, how to handle taxes if you gamble professionally, and how to deal with gambling losses. More importantly, the IRS wants everyone to know that all gambling winnings are considered taxable income. The IRS views all these activities as gambling, among many others.
It might look like a day at the racetrack, a quick stop at the gas station for a lottery ticket, or a weekend in Las Vegas. Most people dabble in gambling at some point in life.