You can write off gambling losses as a miscellaneous itemized deduction. So if you’ve received such a form, remember that the IRS will expect to see the winnings on your tax return. Anytime a Form W-2G is issued, the IRS gets a copy.
In some cases, federal income tax may be withheld, too. You might pay a lower rate on gambling winnings this year because of rate reductions under the TCJA.Īmounts you win may be reported to you on IRS Form W-2G (“Certain Gambling Winnings”).
Winnings are subject to your regular federal income tax rate. The value of complimentary goodies (“comps”) provided by gambling establishments must also be included in taxable income as winnings. You must report 100% of your gambling winnings as taxable income. And changes under the Tax Cuts and Jobs Act (TCJA) could also have an impact. Both wins and losses can affect your income tax bill. If you gamble, be sure you understand the tax consequences.
