Gambling income
What happens in Vegas stays in Vegas. Uncle Sam, however, begs to differ. As a taxpayer, you are usually required to report your gambling proceeds include winnings from lotteries, horse races, casinos and sports betting, including fantasy sports, on your tax return.
For example, if you win $1,200 or more from bingo or slot machines, $1,500 or more from keno, more than $5,000 from a poker tournament, or $600 or more from other wagers, if your proceeds are more than 300 times the amount of your bet, you’ll have to fill in a Form W2-G which will also be sent to the IRS. There’s a silver lining in all this: if you itemize, you can deduct your gambling losses to the extent of the winnings you declare as income.
Keep in mind your home state may also want a piece of the pie. Generally, all of your income is taxed by the state, including gambling winnings. However, if you place a bet and win in another state, you should receive a tax credit from the state where you live for the taxes you pay to the other state.
