Are You Feeling Lucky This Summer?
Do your summer plans include testing your luck at the racetrack or casino? Did you realize that gambling winnings are taxable income? Don’t let that dampen your fun. Read on for helpful tax tips and good luck!
1. Winnings can include winnings from raffles, lottery, casinos or horse races.
2. You may or may not receive a Form W-2G from the payer. Information on that form is also reported to the IRS. If you do not receive this form, you are still required to report your winnings, so you must maintain good records of your winnings.
3. If you itemize your deductions, you can partially offset some of your winnings. Gambling losses can be deducted up to the amount of gambling income reported on your tax return. Unfortunately, if you claim the standard deduction, you do not get to benefit from your losses!
4. Make tax time easier by keeping a folder with win and loss receipts, statements or tickets.
By: Honorine M. Campisi, Senior Tax Manager