![]() ![]() Unfortunately that is not true tax law requires all winnings to be reported whether or not included in a W-2G. Many casual gamblers have the belief that they need only count as winnings those reported on a Form W-2G. Sometimes federal income tax is withheld on the winnings in that case a W-2G is issued regardless of the type of gambling activity. Generally, only winners of the following types of gambling activities will be issued a W-2G: bingo or slot machine players who win $1,200 or more, keno winners of $1,500 or more, gamblers in other activities who win $600 or more when the payout is 300 times or more of the wager amount, and poker tournament players winning $5,000 or more. Even better news is that gambling losses are not subject to either the 2% of AGI reduction of miscellaneous deductions or the phase out of itemized deductions for high-income taxpayers.įorm W-2G is issued by a casino or other payer to some lucky winners with a copy going to the IRS. ![]() Gambling losses are only deductible as a miscellaneous itemized deduction, so you must itemize your deductions in order to claim the deduction. This means that you can use your losses to offset your winnings, but you can never show a net gambling loss on your tax return. Good news…You can! However, the bad news is that gambling losses are only deductible up to the amount of your winnings. ![]()
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