Seattle Indian Community - SeattleIndian
| | |
 


 

Reporting Gambling Income and Losses - Oct 2021

Money
Contributed by : Mukesh Makker
Share With Your Friends

Add To My Favorite

If you aren't in the trade or business of gambling, you should be aware that gambling winnings are fully taxable and must be reported as income on your tax return. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos, and also includes cash winnings and the fair market value of prizes, such as cars and trips. Here is what you need to know:


Gambling Winnings


If you receive certain gambling winnings or have any gambling winnings subject to federal income tax withholding, you will be issued a Form W-2G, Certain Gambling Winnings. Gambling winnings are reported as "Other Income" on Schedule 1 of Form 1040 or Form 1040-SR. Winnings that aren't reported on a Form W-2G should also be included. Depending on the amount of gambling winnings, you may be required to pay an estimated tax on that additional income. For additional information on withholding gambling winnings, please contact the office.


Gambling Losses


You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and have kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. You can claim your gambling losses up to the amount of winnings as "Other Itemized Deductions."


Nonresident Aliens


As a nonresident alien of the United States for income tax purposes and you must file a tax return for U.S. source gambling winnings, using Form 1040-NR, U.S. Nonresident Alien Income Tax Return. Generally, nonresident aliens of the United States who aren't residents of Canada can't deduct gambling losses.


Recordkeeping


To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses. If you need assistance with this, don't hesitate to call.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.

Website: https://taxprofessionalsnw.com/newsletter.php#10

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

Premium Advertiser
Accountants, CPA, Tax Advisors - Accounting and Tax Professionals, Inc, Mukesh Makker, CPA



This is an advertisement
My Business:
Accounting and Tax Professionals, Inc
Bellevue

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

Reporting Gambling Income and Losses - Oct 2021
Closing Your Business: A Tax Checklist - Oct 2021
E-Signatures Extended for Many Tax Forms - Oct 2021
IRAs: Terms to Know - Oct 2021
Per Diem Rates Updated for FY 2021-22 - Oct 2021
View All Articles

Featured Contributors


Ananya Kiran

Darshan Goswami

Anu Peshawaria
Anu Peshawaria

Dilip Saraf

Vasudha Sharma

Rima Arora
Rima Arora

Vivek Wadhwa

Aayushi Manish

Shruti Sadolkar
Shruti Sadolkar

Latest Articles

RIL Executive Director Nikhil Meswani's son, Ishaan, and real estate mogul Sandeep Raheja's daughter, Gayatri, get engaged by Staff
Producer Sandil Dang receives overwhelming response to his latest song 'Habit' by Staff
Snow Records' 'Bismillah 2' featuring Surbhi Jyoti and Rohit Khandelwal by Jazim Sharma tugs souls by Staff
Actor Mayur Mehta to star in a web series titled Talli Jodi by Staff
PRIME VIDEO AND EXCEL MEDIA & ENTERTAINMENT LAUNCH A GRIPPING TRAILER OF AMAZON ORIGINAL SERIES INSIDE EDGE SEASON 3 by Staff
View All Articles