Do You Really Understand Gambling Taxes?
Think you're safe because you didn't get a W-2G? Are you netting your wins and losses? Use this interactive guide to correct common misconceptions and find legal tax-saving strategies.
W-2G Threshold Explorer
When does a casino issue a Form W-2G? Click the cards below to see the reporting thresholds by game type. Remember, even if you don't receive a W-2G, all winnings are taxable income.
Slots / Bingo
$1,200
Gross winnings, not reduced by wager
Poker Tournaments
$5,000
Net winnings, reduced by buy-in
Keno
$1,500
Net winnings, reduced by wager
Other Wagers
$600
& at least 300x the wager
Interactive AGI Impact Calculator
See for yourself how reporting gambling income affects your taxes. Input your wins and losses to visually understand how the incorrect 'netting' method inflates your Adjusted Gross Income (AGI) and can cause you to lose other tax benefits.
1. Enter Information
2. Analyze Results
Session-Based Record Keeper
The IRS requires detailed records to deduct losses. The 'session' method is an effective strategy to lower your AGI. Use the tool below to get in the habit of tracking and managing your gambling activity.
Enter Session Info
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Professional vs. Casual Gambler
Tax treatment is different for those who gamble as a profession. However, the bar for this status is very high and comes with the added burden of self-employment tax. Compare the key differences.
| Attribute | Casual Gambler | Professional Gambler |
|---|---|---|
| Reporting Form | Sch 1 (Winnings), Sch A (Losses) | Schedule C (Profit or Loss) |
| Deductible Items | Wagering losses only | Losses + business expenses (travel, etc.) |
| AGI Impact | Gross winnings increase AGI | Net profit affects AGI |
| Loss Limit | Itemized, up to winnings | Business expense, up to winnings |
| Key Tax Liability | Income Tax | Income Tax + Self-Employment Tax (15.3%) |