This includes cash and the fair market value of any item you win.

Gambling income is almost always taxable income which is reported on your tax return as Other Income on Schedule 1 - eFileIT. Prepare to prepare your tax return with this comprehensive checklist of tax-related steps to take or this list of forms or documents to collect.Įstimate your Tax Return for free now and include your gambling income or losses. Your Tax Return is due on the April IRS tax deadline. However, if you want to learn more about how your gambling income affects your taxes, read on. Based on your answers to several questions, the e-File app will select and prepare the tax forms necessary to report your gambling winnings and losses on your tax return. The easiest and most accurate way to find out how to report your gambling winnings and losses is to start a free tax return on. Your gambling winnings or losses is generally reported on Form W-2G or via Form 5754.

However, you may be able to deduct gambling losses when you itemize your deductions.

Certain special rules apply to gambling income and there are strict record keeping requirements required by the IRS. Gambling income isn't just card games and casinos it also includes winnings from racetracks, game shows, lotteries, and possibly even bingo. This means there there is no way to avoid paying taxes on gambling winnings. But even the winners can be losers if they don't pay their taxes! Any money you win while gambling or wagering is considered taxable income by the IRS as is the fair market value of any item you win. Cleyton Ewerton, gambling, there are winners and losers.

Gambling winnings tax nj