The information in this article is up to date through tax year 2019 (taxes filed in 2020).
Sep 19, 2020 File this form to report gambling winnings and any federal income tax withheld on those winnings. Blue moon casino lake tahoe. The requirements for reporting and withholding depend on: the type of gambling, the amount of the gambling winnings,. It's the gambling establishment's responsibility to fill out and submit Form W-2 G to the IRS. The copy that you receive is for you to report on your tax return. If you haven't received your W-2 G or you lost it, contact the gambling institution to get it reissued, or contact the IRS directly since they will already have a copy.
- The IRS says that Cash and Trips count. But I didnt get a 1099-G for my wife winning 4 plane tickets to the carribean (they valued at 4001). They sent a 1099-MISC. So Im not sure how that will work thats a trip we won. I would think I would be able to deduct anything I lost but not sure if the lack of -G will be problematic.
- 1099-INT for the interest. However, the payer may include interest of less than $600 in the blank box next to box 9 on Form 1099-G. Regardless of whether the interest is reported to you, report it as interest income on your tax return. See your tax return instructions.
- Nov 29, 2020 Gambling and lottery winnings are treated differently than sweepstakes prizes, and those winners do not receive 1099 forms. You do not have to have a 1099-MISC form from each of your prize wins to file your taxes, but they are helpful. They keep you from forgetting about prizes that you won or from misreporting their values.
Every year, people flock to casinos in hopes of hitting it big. High five casino real slots. And since sports betting has been legalized, more people are engaging in gambling than before.
One thing to be aware of, though, is that certain winnings are taxable and are reported on IRS Form W-2 G. This document outlines your gambling winnings from a specific establishment. They should prepare the form to send to you and the IRS.
How do I get my Form W-2 G?
It's the gambling establishment's responsibility to fill out and submit Form W-2 G to the IRS. The copy that you receive is for you to report on your tax return. If you haven't received your W-2 G or you lost it, contact the gambling institution to get it reissued, or contact the IRS directly since they will already have a copy.
Do I have to pay tax on my winnings?
Only winnings above a certain amount in certain games are reported on IRS form W-2 G. It is important to understand that 'winnings' refer to the net amount. So, if you wager $1,000 and win $2,000, your winnings are $1,000.
Only winnings above a certain amount from specific games will be reported on form W-2 G. Those include:
- Slot machine and bingo winnings of $1,000
- Keno winnings equal to or greater than $1,500.
- Pokertournament winnings exceeding $5,000
- Any lottery or sweepstakes winnings over $600
- Any other gambling activity in which you won 300 times the wager
Are winnings withheld for taxes?
This simple question, like most tax-related inquiries, has a complicated answer. Gambling establishments withhold 25% of winnings for individuals who have a Social Security number on file and 28% for all others. Since these winnings are included in taxable income, the individual's tax bracket ultimately determines how much is withheld.
Can I deduct gambling losses?
Yes, losses can be deducted – although you won't receive IRS form W-2 G outlining losses. Keep records of your wagers and losses. They will be reported on Form 1040, Schedule A as 'Other Itemized Deductions.' Be aware, though, that the number of losses which are deductible cannot exceed the number of winnings reported on your tax return.
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Catman88
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Baton Rouge, LA
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Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 7:26 am
The IRS says that Cash and Trips count. But I didnt get a 1099-G for my wife winning 4 plane tickets to the carribean (they valued at 4001). They sent a 1099-MISC. So Im not sure how that will work thats a trip we won. I would think I would be able to deduct anything I lost but not sure if the lack of -G will be problematic. Since it was won through a radio station and not a casino does that not count?
yellowfin
Chicago Cubs Fan
Coastal Bar
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Chicago Cubs Fan
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re: Can gambling losses be deducted from 1099-MISC?Posted by yellowfin on 1/29/13 at 7:36 am to Catman88
Did you pay for a chance to win the trip or just got lucky by being 'caller #8'? The second isn't gambling
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
LSU Fan
Baton Rouge, LA
Member since Dec 2004
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re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 7:48 am to yellowfin
My wife entered via email so yea not gambling. Also looking into the BS amount of 4001 for 4 tickets. The cost if I were to book today would be 2327.60 for the 4 tickets we used. So looking at putting an adjustment of FMV of -1672.40 with 2 used for a trip to St Thomas/St John and 2 for a trip to Nassau. Im not sure where in the Carribean you would pay 1000.25 per person to fly to. I did print out the booking data from delta.
+1099-DIV+(Dividends).jpg "Winnings")
BACONisMEATcandy
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Member since Dec 2007
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LSU Fan
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re: Can gambling losses be deducted from 1099-MISC?Posted by BACONisMEATcandy on 1/29/13 at 8:44 am to Catman88
quote:
Im not sure where in the Carribean you would pay 1000.25 per person to fly to. I did print out the booking data from delta.
Depends on the fare class of the ticket.. There are more than you think
LINK
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 10:30 am to BACONisMEATcandy
These were economy tickets only. Didnt have the option to book another category. What is crazy is that they valued them at 4k but they dont bother take into account that we literally had 2 days only to book. They were giving away tickets that were purchased on points that were expiring on a friday and they awarded them on a Wed.
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Catman88
LSU Fan
Baton Rouge, LA
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49125 posts
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Baton Rouge, LA
Member since Dec 2004
49125 posts
Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 7:26 am
The IRS says that Cash and Trips count. But I didnt get a 1099-G for my wife winning 4 plane tickets to the carribean (they valued at 4001). They sent a 1099-MISC. So Im not sure how that will work thats a trip we won. I would think I would be able to deduct anything I lost but not sure if the lack of -G will be problematic. Since it was won through a radio station and not a casino does that not count?
yellowfin
Chicago Cubs Fan
Coastal Bar
Member since May 2006
95109 posts
Chicago Cubs Fan
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Member since May 2006
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re: Can gambling losses be deducted from 1099-MISC?Posted by yellowfin on 1/29/13 at 7:36 am to Catman88
Did you pay for a chance to win the trip or just got lucky by being 'caller #8'? The second isn't gambling
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 7:48 am to yellowfin
My wife entered via email so yea not gambling. Also looking into the BS amount of 4001 for 4 tickets. The cost if I were to book today would be 2327.60 for the 4 tickets we used. So looking at putting an adjustment of FMV of -1672.40 with 2 used for a trip to St Thomas/St John and 2 for a trip to Nassau. Im not sure where in the Carribean you would pay 1000.25 per person to fly to. I did print out the booking data from delta.
BACONisMEATcandy
LSU Fan
Member since Dec 2007
46547 posts
LSU Fan
Member since Dec 2007
46547 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by BACONisMEATcandy on 1/29/13 at 8:44 am to Catman88
quote:
Im not sure where in the Carribean you would pay 1000.25 per person to fly to. I did print out the booking data from delta.
Depends on the fare class of the ticket.. There are more than you think
LINK
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 10:30 am to BACONisMEATcandy
These were economy tickets only. Didnt have the option to book another category. What is crazy is that they valued them at 4k but they dont bother take into account that we literally had 2 days only to book. They were giving away tickets that were purchased on points that were expiring on a friday and they awarded them on a Wed.
iAmBatman
USA Fan
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USA Fan
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re: Can gambling losses be deducted from 1099-MISC?Posted by iAmBatman on 1/29/13 at 10:49 am to Catman88
Gambling losses can be deducted only up to your winnings.
Example:
You win $5,000 in 2012 and lose $7,500. You can only deduct $5,000 of the losses.
You win $5,0000 in 2012 and lose $4,000. You can deduct the whole $4,000 since it is less than your winnings. You would be responsible for taxes on the remaining $1,000 of you winnings.
Example:
You win $5,000 in 2012 and lose $7,500. You can only deduct $5,000 of the losses.
You win $5,0000 in 2012 and lose $4,000. You can deduct the whole $4,000 since it is less than your winnings. You would be responsible for taxes on the remaining $1,000 of you winnings.
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
LSU Fan
Baton Rouge, LA
Member since Dec 2004
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re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 11:09 am to iAmBatman
Well I understand that. The question was if a prize of this matter counted as 'winnings' or if it had to be specific to gambling and putting money at risk.
If I had 25k in gambling losses and won a 25k MSRP car in a drawing vs 25k in gambling losses and won a 25k MSRP car at the casino slot.
Seems to be that they are not treated equally. In one case I would get to duduct but in the other case I would be stuck with the 25k income. At which I could claim FMV of the car as being around 19k instead of 25k.
If I had 25k in gambling losses and won a 25k MSRP car in a drawing vs 25k in gambling losses and won a 25k MSRP car at the casino slot.
Seems to be that they are not treated equally. In one case I would get to duduct but in the other case I would be stuck with the 25k income. At which I could claim FMV of the car as being around 19k instead of 25k.
C
Atlanta Falcons Fan
Houston
Member since Dec 2007
26669 posts
Atlanta Falcons Fan
Houston
Member since Dec 2007
26669 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by C on 1/29/13 at 11:21 am to Catman88
quote:
What is crazy is that they valued them at 4k but they dont bother take into account that we literally had 2 days only to book
Interesting way to reduce losses by an airlines..
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iAmBatman
USA Fan
The Batcave
Member since Mar 2011
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USA Fan
The Batcave
Member since Mar 2011
10670 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by iAmBatman on 1/29/13 at 11:26 am to Catman88
quote:
If I had 25k in gambling losses and won a 25k MSRP car in a drawing vs 25k in gambling losses and won a 25k MSRP car at the casino slot.
I see what you're saying and I'm not exactly sure what the IRS uses as the definition of 'gambling.' To me, it would seem that if you paid for a chance to win something, then that would be gambling. There is also the issue of people doing those sort of raffles as a charity (like St. Jude Dream Home) and then writing off the cost of the ticket as a donation. I really don't know all the ends and outs but I'm sure Poodlebrain could fill in the gaps.
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re: Can gambling losses be deducted from 1099-MISC?Posted by sneakytiger on 1/29/13 at 11:29 am to Catman88
LINK
Prizes and awards.
If you win a prize in a lucky number drawing, television or radio quiz program, beauty contest, or other event, you must include it in your income. For example, if you win a $50 prize in a photography contest, you must report this income on Form 1040, line 21. If you refuse to accept a prize, do not include its value in your income. Prizes and awards in goods or services must be included in your income at their fair
market value.
I think the bolded part gives you your answer - the instructions are telling you to report it on a different line than where you would report gambling losses. So I don't think you can offset.
Prizes and awards.
If you win a prize in a lucky number drawing, television or radio quiz program, beauty contest, or other event, you must include it in your income. For example, if you win a $50 prize in a photography contest, you must report this income on Form 1040, line 21. If you refuse to accept a prize, do not include its value in your income. Prizes and awards in goods or services must be included in your income at their fair
market value.
I think the bolded part gives you your answer - the instructions are telling you to report it on a different line than where you would report gambling losses. So I don't think you can offset.
re: Can gambling losses be deducted from 1099-MISC?Posted by LSUchuck on 1/29/13 at 12:03 pm to sneakytiger
It is reported as other income not subject to SE taxes. Nothing can be used to offset it.
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 12:23 pm to LSUchuck
Well IRS does say that prizes are subject to FMV.
I also had to pay the international taxes to fly to Nassau. That is normally included in the ticket price. So Im guessing I could reduce the winnings by the 95 dollars per ticket I incured there as well since I have that documented. Likely I will just keep my printout of the real cost and use that to determine FMV.
I also had to pay the international taxes to fly to Nassau. That is normally included in the ticket price. So Im guessing I could reduce the winnings by the 95 dollars per ticket I incured there as well since I have that documented. Likely I will just keep my printout of the real cost and use that to determine FMV.
What Is A 1099-g
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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
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Navy Fan
perfectanschlagen
Member since May 2008
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re: Can gambling losses be deducted from 1099-MISC?Posted by Newbomb Turk on 1/30/13 at 8:42 am to Catman88
You do not have to claim the full MSRP on your winnings. If you can document that you could have (or did) gotten the prize for a lot less, you need only claim that amount. So, if you won a car with an MSRP of $25K, but you can get a statement from a dealer that they sold that same car with the same options for $21K, that's all you need to claim.
You really should get contemporaneous documentation, however, as claiming something less than what is shown on the 1099 just might invite an audit. However, if you don't want to risk an audit (because you may have other 'iffy' items on your return), there is a method by which you can call the IRS and file a Form 4598 to get the prize company to issue a corrected 1099.
As far as deducting losses, you're out of luck. The IRS takes the position that sweepstakes type winning (where you don't really have to do anything but enter -- i.e., you're not putting up any of your money to get a chance to 'win') are not considered 'gambling winnings' and therefore cannot be offset by gambling losses.
You really should get contemporaneous documentation, however, as claiming something less than what is shown on the 1099 just might invite an audit. However, if you don't want to risk an audit (because you may have other 'iffy' items on your return), there is a method by which you can call the IRS and file a Form 4598 to get the prize company to issue a corrected 1099.
As far as deducting losses, you're out of luck. The IRS takes the position that sweepstakes type winning (where you don't really have to do anything but enter -- i.e., you're not putting up any of your money to get a chance to 'win') are not considered 'gambling winnings' and therefore cannot be offset by gambling losses.
1099-g Income Tax Statement
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
LSU Fan
Baton Rouge, LA
Member since Dec 2004
49125 posts
re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/30/13 at 10:26 am to Newbomb Turk
Yea I dont have anything fishy on my return. Pretty standard return. Have all documentation. Would rather not pay 400 extra in taxes because they pulled a number out of thin air. 4 tickets 1k each. How fricking lazy was that.
Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9961 posts
Navy Fan
perfectanschlagen
Member since May 2008
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re: Can gambling losses be deducted from 1099-MISC?Posted by Newbomb Turk on 1/30/13 at 2:10 pm to Catman88
Call the IRS, present your documentation and they may have the prize company issue a new 1099.
Again, your shit-out-of-luck with the gambling losses.
Again, your shit-out-of-luck with the gambling losses.
1099-gambling Winnings
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