Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Sunday, March 2, 2008 at 12:00 AM

E-mail article     Print view

Tax Tips

How to handle gambling income and losses

Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes, but is not limited to, winnings from...

Information

H&R Block: www.hrblock.com/taxes/tools. Contains tax tips and calculators.

Smartmoney.com: www.smartmoney.com/tax. Features tax basics and work sheets.

Tax Hawk: www.taxhawk.com. Select "Tax Tips" for a list of common tax mistakes.

Gambling winnings are fully taxable and must be reported on your tax return.

Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.

Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G and might have withheld federal income taxes from the payment.

Here are general guidelines on gambling income and losses:

Reporting winnings: The full amount of your gambling winnings for the year must be reported on line 21, Form 1040.

You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form.

Deducting losses: If you itemize deductions, you can deduct your gambling losses for the year on line 28, Schedule A (Form 1040). You cannot deduct gambling losses that are more than your winnings.

It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.

For more information see IRS Publication 529, Miscellaneous Deductions, or Publication 525, Taxable and Nontaxable Income, both available on the IRS Web site, www.irs.gov, or by calling 800-829-3676.

— Internal Revenue Service

Copyright © 2008 The Seattle Times Company

More Business & Technology headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

UPDATE - 03:29 AM
Bill Clinton meets with Senate Dems on health care

Credit-card holders to pay the price for banks' struggles

Kraft's offer for sweets giant Cadbury turns bitter after rejection

Fewer fliers expected over holidays

Big bonuses coming at 3 big banks

Advertising

Video

Ken Auletta talks about "Googled"
Ken Auletta talks about Google with Brier Dudley at the Seattle Central Library.

Medal of Honor
Pelosi answers questions at Swedish Medical Center
Pelosi speaks at Swedish Medical Center
"Pistol" Pete Ryan
Mourners gather at KeyArena for slain officer's memorial
Procession for slain SPD officer
Election Night: Approve R-71
Election Night: Reject R-71
Election Night: Joe Mallahan

Marketplace

nwautos

2009's most fuel-efficient sedansnew
Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment

Open Houses

Find this weekend's open house listings.
Or search by location:

 
Most read
Most commented
Most e-mailed
 
 
Advertising