If you received gambling winnings during the tax year, you must report them on your federal income tax return. Gambling income is fully taxable, and the IRS requires you to include it regardless of whether you receive Form W-2G.
Gambling Income Includes (but is not limited to):
- Lotteries
- Raffles
- Horse races
- Casinos
- Online gambling platforms
- Sports betting
- Poker tournaments
- Sweepstakes and prize drawings
Reporting Requirements:
- Winnings are reported on Schedule 1 (Form 1040), Additional Income, under “Other Income.”
- If you receive Form W-2G, enter the information exactly as shown.
- You may also deduct gambling losses, but only if you itemize deductions and only up to the amount of your winnings (reported on Schedule A).
Tip: Keep detailed records of your gambling activity, including dates, amounts, and locations, to substantiate both winnings and losses.