Apr 14, 2015 Here is what you need to know at tax return time. The most important rule. The biggest single thing to know is that you can only deduct gambling losses for.
November 01, 2017
Have you recently won some cash at the casino or racetrack? Congratulations! While it is very exciting, keep in mind there are tax implications and you should be prepared to pay federal, state and local income taxes on the winnings.
Irs Form 1040 Gambling Losses
You can anticipate that the casino or other party that provides the payout to give or send you a Form W-2G. The information reported on this federal form includes the date you won, the reportable winnings, type of wager, federal and state taxes withheld and other details about the transaction.
You will file a W-2G if you won money from any of the following sources (please note, the list is not exhaustive):
Tax Reform Affects Gambling Losses
- Horse/dog track or off track betting
- Jai-alai
- State-conducted lottery
- Keno • Bingo
- Slot machines
- Poker winnings
- Any other type of gambling winnings
Keep in mind, even if you win money at a charity event that is hosted by a church or other type of non-profit organization, those winnings are taxable. If you paid money to participate in the event, such as purchased cards for a game of bingo at your church, you cannot claim the funds you spent as a donation to a non-profit organization when you file your income taxes.
If you find yourself on the losing end of a game of chance, you may wonder if you can report a gambling loss on your tax return. Generally, it is not allowable, but there are exceptions. It is advisable that you consult with a tax professional if you find yourself in such a situation or have questions.
For rules, laws and other information pertaining to gaming in Indiana, visit the Indiana Gaming Commission website at http://www.in.gov/igc/.