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. Gambling income plus your job income (and any other income) equals your total income. Fortunately, you do not necessarily have to pay taxes on all your winnings. Instead, if you itemize your deductions, you can claim your losses up to the amount of your winnings.Note, under the new tax reform law, the gambling loss limitation was modified. Dec 14, 2018 IRS Form Form W-2G reports gambling winnings. If you've it you can get a copy from the gambling establishment that gave it to you. Alternatively, you can ask the IRS to send you a copy. The gambling establishment sent a copy of the W-2G to the IRS to report the money it withheld from your winnings.

The information in this article is up to date through tax year 2019 (taxes filed in 2020).

Every year, people flock to casinos in hopes of hitting it big. 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
LSU Fan
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

yellowfin
Chicago Cubs Fan
Coastal Bar
Member since May 2006
95109 posts

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

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

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

re: Can gambling losses be deducted from 1099-MISC?Posted by Catman88 on 1/29/13 at 10:30 am to BACONisMEATcandy

1099-g Income Tax Statement Gambling

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
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 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.

Catman88
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 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

1099 G Gambling