If you enjoy trying your luck at the tables, watching the slots spin, or hoping for your horse to win, any money you’ve won from these activities are taxable, ad must be reported to the IRS. You may enjoy a game of chance every once in a while, however, you should never gamble with your taxes. Follow these basic tips to make sure the odds stay in your favor at tax time:

Income from Gambling: Anything won from a casino, lottery, or horse racing is included in gambling income. Aside from cash and money, prizes like cars and vacations are included at the fair market value.

Tax Form: When money is paid to you for gambling winnings, you may receive a Form W—2G, Certain Gambling Winnings in order to report the income to the IRS. Depending on the type of game you played, how much you won, and certain other factors, the payer may provide the form at the time of payout. If the payer withholds taxes immediately, you will still get the form.

Reporting: Anything won from gambling must be reported as income, even if you don’t receive a Form W-2G. Typically, gambling income falls under the category of “other income”.

Deductions: Losses from gambling can be deducted using Schedule A, Itemized Deductions, up to the amount of gambling income you report. If you report $2,000 in winnings, you can only deduct $2,000 in losses, at most.

Receipts: Just like any other deductions, you’ll need proof such as gambling logs, statements, tickets or receipts. You should keep a clear record of all wins and losses.