2024 Gambling Taxes Guide & Gambling Calculator

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In most cases, all income must be reported to the IRS in the United States. That includes gambling winnings, whether won online or in person. We recommend that gamblers keep a careful log of how much they gamble away and how much they win to accurately report the figures come tax day. The last thing you want to do is gamble on whether or not the IRS will come after you.

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Disclaimer: We are casino experts, not necessarily tax experts. While we’ve worked to compile the most comprehensive information we could in this guide, you should always conduct your own research or consult a tax professional to ensure you are fulfilling all tax obligations.

    Gambling Tax Calculator

    Use our tax calculator below to determine how much of your gambling winnings you’ll be able to keep based on your state, filing status, and income level. Provide your total income, including gambling winnings, on top of the gambling winnings on their own.

    Gambling Tax Calculator

    State
    Filing Status
    Total Annual Taxable Income
    Gambling Win Amount
    Tax Paid on Gambling Winnings
    $ 0
    You Keep From Your Gambling Winnings
    $ 0

    Disclaimer: The tax calculator assumed a standard deduction of $13,850 (single) / $27,700 (married) and does not include any local or municipal taxes. This calculator is intended solely for general information and educational purposes. It is not intended in any way as financial, tax or legal advice It cannot be relied upon to determine the actual tax you owe to any federal, state or local tax authority. The results are an estimate only. The actual tax that you owe or any deduction you may be entitled to depend on your personal circumstances and you are responsible for seeking independent tax advice from a qualified individual. Catena Media and its Group Companies do not collect or save any information inputted into this calculator.

    Gambling Winnings Vs. Losses

    Reporting Gambling Winnings for Taxes

    Gambling winnings are classified as income and, as such, must be reported. With larger wins, an online casino may automatically send you a W-2G tax form to report, but keep in mind that winnings must be reported even if they do not automatically generate a W-2G. If the winnings do trigger a form, the IRS will also receive a report from the casino, so you should never neglect to report. We’ll cover these W-2G trigger amounts below in the Federal Taxes & Forms section.

    In most cases, gambling winnings are taxed federally at 24%. Slot machine wins are taken from the full amount, while other games, such as poker, allow you to deduct the tournament buy-in or initial wager.

    Once you’ve reported gambling winnings for federal taxes, you also must consider reporting them for state taxes. Some states do not require you to report gambling winnings. These states include Alaska, California, Florida, Hawaii, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Utah, Washington, and Wyoming. If you live in a state that’s not listed here, there’s a good chance you must also report and pay state taxes on gambling winnings. This holds true even if you are a non-resident, although in that case, you may receive a tax credit on your home state taxes.

    Lastly, note that reporting gambling winnings is not limited to cash wins. In most cases, you’ll also have to pay taxes on the value of non-cash wins, such as raffles and giveaways that offer physical prizes.

    Reporting Gambling Losses for Taxes

    Gambling losses can be reported and deducted so long as you don’t identify as a professional gambler. This is because professional gamblers can report their losses as business expenses. For a regular gambler to deduct losses, however, they must itemize deductions instead of taking the standard deduction, which does add a new level of complexity to filing taxes. For that reason, we don’t often recommend reporting gambling losses, as the standard deduction is often more than the itemized deduction if you’re not a professional gambler.

    Furthermore, when you’re reporting gambling losses, they can not exceed your winnings. In other words, you can not simply report gambling losses if you don’t have any gambling winnings.

    Federal Taxes

    As mentioned above, although bigger wins may trigger automatic W2-G forms, all gambling winnings must be reported regardless, according to the IRS. Gambling winnings do not need to be reported right away, but they do need to be included on your tax return. Below, we’ve listed the minimum win amounts that generally trigger Form W-2Gs to be generated.

    • Slots and Bingo: $1,200 or more
    • Table Games: Generally do not generate a Form W-2G, but must still be reported
    • Sports Betting: $600 or more
    • Keno, Poker, Lotteries, Sweepstakes, and Betting Pools: $5,000 or more
    • Other Forms of Gambling: $600 or more if a win is 300x the wager; the wager itself can be taken into account for these winnings

    Gambling Tax Forms & Documents

    W-2G Form

    Now that we’ve covered when a W-2G form will be generated, let’s take a closer look at what that form actually is. If you’ve ever filled out a regular W-2 form for an employer, chances are you’ll be familiar with the format and information required on a W-2G form. Essentially, a W-2G form is the same form but specifically utilized to report gambling winnings and any federal income tax withheld on those winnings.

    Form 1040

    As mentioned earlier, all gambling winnings must be reported even if a Form W2-G isn’t automatically generated. This is where Form 1040 comes in, which is utilized to report additional income and adjustments to income. If you need a Form 1040 to report any gambling winnings, you can download it directly from the IRS website.

    State Taxes & Winnings

    Not all states require you to report gambling winnings, although most do. However, some states either do not collect state income tax or consider paying federal taxes on gambling winnings enough to fulfill your obligations. The states that do not require you to report gambling winnings are:

    • Alaska
    • California
    • Florida
    • Hawaii
    • Nevada
    • New Hampshire
    • South Dakota
    • Tennessee
    • Texas
    • Utah
    • Washington
    • Wyoming

    If you don’t live in one of the above states, you can utilize our tax calculator below to determine the tax you must pay on gambling winnings as well as your keep. State tax rates for gambling winnings vary, so the calculator is the easiest way to understand your tax obligation.

    There are many variables when paying state taxes on gambling winnings, including total amounts, exemptions, and more. For example, lottery wins in New Jersey under $10,000 will not have taxes withheld automatically, while wins between $10,000 and $500,000 will have 5 percent withholdings. Multi-state lotteries adhere to the state in which you won. For example, if you win the Powerball in Florida, you don’t have to pay any state tax. However, if you win it in New York, you must pay a state tax of 8.82%.

    All this to say, do your research and fulfill all of your state tax obligations based on the game that yielded your winnings and the circumstances.

    Gambling Tax Documents By State

    Below, we’ve put together a list of important links regarding gambling taxes and documents for each state that offers legal online gambling. We’ve also included important information, such as the state tax rate on gambling winnings (keep in mind that this is in addition to a federal 24% tax).

    Gambling Tax Tips

    1

    Don’t Wait for a Form

    Many players believe that they only need to report their gambling winnings if they are issued a W2-G or 1099, but this is not true. All gambling winnings, even if they are below the threshold to trigger these forms, must be reported.

    2

    Keep Track of Winnings

    Now that you know the first gambling tax tip, this one should go without saying. Make it easier on yourself and track your winnings as they occur. Nobody likes having to rush around to dig up information in the heart of tax season.

    3

    Deduct Losses

    Gambling losses can be deducted to a certain extent, and if you want to make the most of your taxes, you should absolutely take advantage of this. However, keep in mind that in order to claim gambling losses, you must file them itemized, so you won’t be able to take the standard deduction. In addition, players are only allowed to deduct losses up to the amount of winnings claimed. For example, if you win $1,000 but lose $2,000, you can only claim up to $1,000 of losses.

    4

    File Schedule C if You’re a Professional Gambler

    If you are a professional gambler, you should file Schedule C as self-employed rather than relying on W2-G and 1099 forms. This opens up possibilities for deductions beyond your losses up to the amount of winnings, as mentioned in the previous tip. These further deductions may include internet costs for online wagering or travel expenses if you attend tournaments, etc.

    5

    Include Non-Cash Prizes

    If you win a non-cash prize through a promotion, for example, this also must be included in your reported winnings. Almost every promotion or non-cash prize giveaway held in the gambling world will include an item value in the terms and conditions, and this is what you must report.

    6

    Always Report Winnings

    Last but not least, always report all of your winnings. It may seem like a drag in the moment, but it’s much worse to leave yourself hanging out to dry if/when the IRS comes knocking for an audit.

    Here are more online casino tips for new players.

    More Legal Gambling Guides

    About the Author

    Craig Corbeels

    Craig Corbeels

    Craig Corbeels is a lead writer and gambling expert for Bonus.com. He has been involved in the online gambling industry since 2013. Previously, he worked for Gamesys and Bally's Interactive as a copywriter and social media strategist for multiple North American online casinos.
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