If you play the ponies, play cards or like to play the slots, your gambling winnings are taxable. You must report them on your tax return. Here are some tips that can help you at tax time next year.
- Income from gambling includes winnings from the lottery, horse racing and casino’s. It also includes cash and non-cash prizes. You must report the fair market value of non-cash prizes like cars and trips.
- If you win the payer may give you a form W-2G as well as send a copy to the IRS. The payer must issue the form based on the type of gambling, the amount that you won and other factors. In Missouri most establishments will withhold state withholding from your winnings.
- You report your winnings for the tax year on your return as “other income”. You must report all gambling winnings as income even if you don’t receive a W-2G.
- You can deduct your gambling losses on Schedule A. You can only deduct losses up to your winnings.
For more information please contact Wamhoff Accounting at 636-573-1212.