If you enjoy trying your luck at the tables, watching the slots spin, or hoping to win your horse, any money you have earned from these activities is taxable, the IRS must be advertised. Every once in a while you can enjoy a game of chance, but you should never play your taxes. Follow these basic tips to ensure that the odds remain in your favor at the time of taxation: Revenue from gambling: Anything won from a casino, lottery or horse racing is included in the revenue from gambling. Apart from cash and money, the fair market value includes prizes such as cars and holidays. Tax form: If you receive money for gambling winnings, you can receive a FormW-2 G, Certain Gambling Winnings, to report the income to the IRS.

The payer can provide the form at the time of payout depending on the type of game you played, how much you won and some other factors. If the payer immediately withholds taxes, you will still receive the form. Reporting: Anything won from gambling must be reported as income, even if you do not receive a FormW-2G. Typically, gambling income falls under the “other income” category. Deductions: Losses from gambling can be deducted up to the amount of gambling income you report using Schedule A, Itemized Deductions. If you report winnings of $3,000, you can only deduct losses of $3,000 at most. Receipts: You will need proof, such as gambling logs, statements, tickets or receipts, just like any other deductions. A clear record of all wins and losses should be kept.