Do I have to pay tax on my gambling winnings?

Gambling winnings are fully taxable and must be reported on Form 1040, Line 21 if you are not a professional gambler. It is important to keep an accurate diary or similar record of your gambling winnings and gambling losses.

If you itemize your tax deductions on Form 1040, Schedule A, you may deduct any gambling losses up to the amount of your gambling winnings on your tax return. If you have no gambling winnings for the tax year then you cannot deduct your gambling losses on your tax return. The tax deduction on your tax return is not subject to the 2% AGI floor.

Gambling winnings from lotteries and raffles are taxable gambling winnings on your tax return. In addition to cash gambling winnings, you must include on your tax return bonds, cars, houses, and other non-cash gambling winnings at their fair market value.

If you win a state lottery prize payable in installments, you must include on your tax return both the annual payments and any amount designated as “interest” on the unpaid gambling winning installments.

Any federal income tax withheld from your gambling winnings should be included on your tax return. Be sure to attach your Form W2-G to your tax return.

Related tax information about gambling winnings

Tax Directory Topics:
Gambling Losses
Income Related Questions and Answers

IRS publications about gambling winnings:
For more tax information on gambling winnings and gambling losses, refer to Tax Topic 419, Gambling Income and Expenses. Refer to IRS Publication 529,

Miscellaneous Deductions for information on record keeping. Also see IRS Publication 525,

Taxable and Nontaxable Income and IRS Publication 17,

Your Federal Income Tax. Please read this IMPORTANT Editor's Note regarding navigating IRS publications with Adobe Acrobat Reader.
IRS publications can also be ordered by calling 1-800-829-3676.

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