reporting gambling winnings and losses to irs

The IRS offers wage and income transcripts that will list all of your tax documents for the year(s) in question. If you have any questions on this topic, please let us know! We would like to remind you to keep track of your gambling winnings and losses in a log throughout the year since this will be necessary in the event of an IRS examination. Your gambling losses, up to the amount of your winnings, during the year can be used as an itemized deduction – which could potentially help to reduce your taxable income. The bright side of this reporting requirement is that your gambling losses can be included on your tax return as well. It will be deemed “other income” on your tax return for the year in which the income was received. Even if you do not receive a Form W-2G to report your gambling winnings, you are still required to report the income that you received from these sources. There are certain cases in which this form will not be issued to you. This form will also be sent to the IRS by the payer at year-end. In some circumstances, you will be issued a Form W-2G to display your winnings throughout the year.

This includes all winnings from lotteries, horse races, casinos, etc. Regardless of what type of gambling you may enjoy, all gambling income is taxable to you. Tips on Reporting Gambling Winnings and Losses

Regardless if you file an extension of time to file, the amount owed to the IRS/State is due by April 15th and will occur penalties and interest after the due date. If you owed with previous year’s tax return and you expect the same outcome for next year, you may want to consider changing your W-4 on file with your employer or making estimated tax payments to lessen the burden.

Reporting gambling winnings and losses to irs