All gambling winnings need to be reported on your tax return even if you did not receive a Form W-2G, Certain Gambling Winnings.
Gambling winnings include, but are not limited, to lotteries, sweepstakes, raffles, casinos, wagering pools, bingo games, slot machines, keno games, poker tournaments, and horse and dog racing. For non-cash payments, such as a trip or a car, you must include the fair market value of the item when reporting gambling winnings on your tax return.
Did you know that you may be able to deduct some of your losses from gambling if you itemize your deductions on Schedule A? Gambling losses can be deducted up to the amount of your gambling winnings. The only thing that IRS requires is that you keep records of your gambling activities.
The best way to stay organized is to keep a written log or diary of the date and type of your gambling activity, location of the gambling establishment, names of people who were present with you at the gambling establishment, and the amount that you won or lost. Be sure to keep all receipts, tickets, statements or other records related to your gambling activity, both winnings and losses, as well.
TaxAct will not only guide you through entering your income and losses from your gambling activities but also provides additional guidance in Life Events and TaxTutor Guidance in TaxAct.