Gambling Income and Expenses – Taxes

Overview of Gambling Income

Gambling income is not limited to cash winnings. It also includes the fair market value of non-cash prizes. For instance, if you win a car in a raffle, the value of the car is considered gambling https://i9bet.trading/income. According to the IRS, gambling income includes, but is not limited to:

Horse and dog races
Slot machines

Reporting Gambling Winnings

If you receive $600 or more in gambling winnings, or $1,200 from bingo and slot machines, or $1,500 from keno, and your winnings are at least 300 times the amount of the wager, the payer is required to issue you a Form W-2G. For winnings over $5,000, the payer may need to withhold 24% of the proceeds for federal income tax. If you do not provide your Social Security number, the withholding rate increases to 28%.
Type of Gambling Reporting Threshold Withholding Rate
General Winnings $600 24%
Bingo/Slots $1,200 24%
Keno $1,500 24%
No SSN Provided Any Amount 28%
Reporting on Tax Forms

The total amount of your gambling winnings for the year must be reported on line 8b of Form 1040. If you itemize deductions, you can deduct your gambling losses on Schedule A (Form 1040), but only up to the amount of your winnings. This means you cannot deduct losses that exceed your winnings.
Deducting Gambling Losses

To deduct gambling losses, you must keep an