If you won money from gambling or the lottery, the IRS generally considers those winnings taxable income. In some cases, you’ll receive Form W-2G, which reports certain gambling winnings to both you and the IRS.
Not all gambling winnings trigger a W-2G, but all gambling income is still required to be reported, even if you don’t receive a form.
What counts as gambling or lottery winnings?
Gambling winnings can include money you receive from:
Lottery winnings (including state lotteries)
Sweepstakes and raffles
Wagering pools
Charity drawings
Casino gambling and betting activities
Whether you receive a Form W-2G depends on the type of gambling and the amount you won.
Why did I get a W-2G?
Form W-2G is used to report gambling winnings that meet IRS reporting thresholds. If you receive one, it means the payer has reported those winnings to the IRS.
The form shows:
The amount of your gambling winnings
Any federal income tax withheld (if applicable)
When will I receive a Form W-2G?
For 2026, you’ll generally receive Form W-2G if your winnings meet certain IRS reporting thresholds:
$2,000 or more from sweepstakes, wagering pools, raffles, charity drawings, or the lottery, generally when the winnings are at least 300 times the wager
$2,000 or more from bingo or slot machines
$2,000 or more from keno, after subtracting the wager
$2,000 or more in net winnings from a poker tournament
Reporting requirements vary by type of gambling. You may also receive Form W-2G when federal income tax is withheld from your winnings.
Can I deduct gambling losses?
In some cases, yes, but only if you itemize your deductions.
Starting in 2026, you can deduct up to 90% of your gambling losses, but no more than your gambling winnings.
To qualify:
You must itemize deductions on Schedule A
You must keep records of your gambling winnings and losses
For example, if you have $5,000 in gambling winnings and $5,000 in losses, you can deduct up to $4,500 in losses.
Gambling losses are claimed as other itemized deductions.
If you take the standard deduction, gambling losses aren’t deductible.
What if I didn’t receive a W-2G?
You may still need to report gambling or lottery winnings even if you didn’t receive Form W-2G. Some winnings don’t meet the IRS thresholds for issuing the form, but they’re still considered taxable income.
Key takeaway
If you won money from gambling or the lottery, it’s generally taxable. Form W-2G is issued when winnings meet certain reporting thresholds, but all gambling winnings still need to be reported. Starting in 2026, you may be able to deduct up to 90% of your gambling losses if you itemize, but no more than your winnings.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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