Gambling Winnings and Losses (ASL) - YouTube video text script
Hi, I’m Patrick, and I work for the IRS.
Do you like to gamble?
If so, then you should know that gambling winnings are generally taxable and must be reported on your tax return.
If you itemize your deductions on Schedule A, then you may also claim your gambling losses, but only up to the amount of the winnings shown on your tax return.
It’s a good idea to keep an accurate diary or daily log to show both your wins and losses.
And if you are going to claim your losses, then you must keep all related receipts, tickets and statements.
Common examples of gambling income are winnings from lotteries, raffles, horse races, dog races, and from casinos.
The Fair Market Value of noncash prizes like cars, houses and trips is also taxable.
Depending on the type of game and the amount of your winnings, the casino or other type of payer, such as lotteries, dog races and so forth, may withhold taxes from your payment and give you a Form W-2G.
This form shows your winnings and the amount of taxes withheld.
You will need to report these items on your tax return.
In many cases, you may also need to make quarterly estimated tax payments.
To get more information about gambling and your federal taxes, go to IRS.gov.