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?
You’ll typically receive Form W-2G if your winnings meet certain IRS thresholds:
$600 or more from sweepstakes, wagering pools, raffles, charity drawings, or the lottery and the payout is at least 300 times the amount of the wager
$1,200 or more from bingo or slot machines
$1,500 or more (reduced by the wager) from keno
More than $5,000 (reduced by the wager or buy-in) from a poker tournament
Some gambling types, like bingo, keno, slot machines, and poker tournaments, have their own specific limits, which is why you may receive a W-2G for some winnings but not others.
Can I deduct gambling losses?
In some cases, yes — but only if you itemize your deductions.
You may be able to deduct gambling losses up to the amount of your gambling winnings if:
You itemize deductions on Schedule A, and
You kept records of your gambling winnings and losses
You can’t deduct more losses than the amount of gambling income you report. 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 only when winnings meet certain thresholds, but all gambling winnings still need to be reported. Gambling losses may be deductible if you itemize, but only up to the amount of 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.
Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by April and April is not responsible for, and has no control over, their content, privacy policies, or terms of service.