Gambling Winnings: Introduction
Gambling winnings are fully taxable, so you won’t get to keep every penny even if you beat the odds and win big. The Internal Revenue Service (IRS) has ways of ensuring that it gets its share.
Casino winnings and winnings from lotteries, horse races, off-track betting, sweepstakes, and game shows are all taxable.
But there’s a bit of good news here. If you itemize your deductions, you can deduct gambling losses up to the amount that’s offset by your winnings. You must be able to prove the numbers with records of your winnings and losses.
Roughly 79% of people who visited Las Vegas in 2023 took to the gambling tables, and they weren’t alone. Casinos abound in a variety of cities across the…