The IRS requires you to keep the following information about each gambling win and loss: Depending on the amount of your winnings, you may receive one or more Forms W-2G, which reports the amount of your winnings, as well as the amount of tax that was withheld, if any. These options are only relevant if you have backed the Unnamed Favourite to win, when more than one favourite has been declared. You will need these forms to prepare your tax return. By law, gambling winners must report all of their winnings on their federal income tax returns. Certain special rules apply to gambling income, and there are strict recordkeeping requirements. For example, can you still make a profit if only two of your Lucky 15 selections win?
What Are Considered Gambling Winnings?
Configurable bonuses and consolations can be applied to relevant bets, enabling the calculation of the full expected return. Large Accumulators and perms consisting of up to 20 selections are possible, with full support for each way bets including equally divided , and bets affected by Rule 4, dead heat and even joint favourites. As well as calculating the return on your winning bets, the bet calculator can be used before you place your bet, to quickly compare how the return may be affected by different outcomes for each selection.
For example, can you still make a profit if only two of your Lucky 15 selections win? New visitors may also find the extensive Betting Glossary and detailed Help pages useful. The Number of Selections value is automatically updated when you switch between different bet types, if the current value is less than the minimum required for the type of bet. The number of selections can be increased in order to create perms or, in the case of Accumulators, to simply extend the size of the Accumulator.
The Accumulator Fold Size is automatically updated to reflect changes to the Number of Selections , but you can perm Accumulators simply by reducing this value to the required fold size.
For example, to perm 4-Folds from 6 selections, set the Number of Selections to 6, and then change the Accumulator Fold Size to 4. Most bookmakers add a bonus to certain bet types when a particular criterion is met, such as all winners , but there are often conditions attached.
Some bookmakers will apply bonuses to bets containing selections involved in other sports, but they may restrict them to certain markets. Other conditions may also apply, such as minimum odds for each selection, or a minimum unit stake.
Since there are a number of conditions that dictate whether a particular bet qualifies for a bonus, the Include Bonus option makes it easier for you to include, or exclude, the bonus settings from your calculations. This can be done on a bet by bet basis, without needing to alter individual bonus settings, which are otherwise normally fixed for a particular bookmaker. Simply click the button with the relevant selection number to display a panel containing the less frequently used Rule 4 , Dead Heat and Joint Favourite options.
For example, if a selection has lost, then Win Odds is not relevant, so that option is removed from the form. Win Odds can be entered in either Fraction , Decimal or American format, in accordance with the current odds format that can be changed via the Settings.
Remember that, even if you do not get a W-2G, you must report all gambling winnings. If you win a non-cash prize, such as a car or a trip, you will be responsible for paying taxes on the fair market value of each prize. Depending upon the amount of your winnings and the type of gambling, the establishment or payer may be required to withhold income taxes. You may deduct gambling losses if you itemize your deductions.
You can deduct your losses only up to the amount of your total gambling winnings. You must generally report your winnings and losses separately, rather than reporting a net amount. The IRS requires you to keep detailed records of your gambling winnings and losses, and to keep any related documents, including receipts, tickets, payment slips, statements, Form W-2G, and Form You must be able to prove both your winnings and losses if you wish to deduct your losses.
The IRS suggests that you keep a gambling log or diary. If you efile your tax return, you do not have to send any W-2Gs or other documents to the IRS but you must keep them for your records in case of audit.
The rules described on this page are for the majority of people with gambling income, those who are not professional gamblers. If gambling is your actual profession, then your gambling income is generally considered regular earned income and is taxed at your normal effective income tax rate. As a self-employed individual, you will need to report your income and expenses on Schedule C.
You can deduct gambling losses as job expenses using Schedule C, not Schedule A. Nonresidents can usually report income that is "effectively connected" with a U. Gambling winnings, however, are considered to be "not effectively connected" and so must generally be reported on Form NR. Nonresident aliens generally cannot deduct gambling losses. However, there is a tax treaty between the United States and Canada that generally allows Canadian citizens to deduct their gambling losses, up to the amount of their gambling winnings.
If you have gambling winnings or losses, they must be reported on your tax return. When you prepare your return on efile. We will prepare all the forms needed to report this on your return so you don't have to worry about which form you need. Biggest Refund Guarantee Details. Get Tax Return Support. Give Us Your Feedback!