Winnings and Losses Must Be Reported Separately
Withholding May Be Required
If your winnings exceed $5,000 and the payout is at least 300 times the amount of your bet, the IRS requires the payer to withhold 24% of your winnings for federal income taxes. State taxes may also be withheld depending on the location.
You May Receive an IRS Form W-2G to Report Winnings
You Must Report ALL of Your Winnings – No Matter How Small
Whether your winnings come from a casino or an office pool, all gambling winnings must be reported on your tax return as “Other Income” on Schedule 1 (Form 1040). Even non-cash prizes such as cars and vacations must be reported as income based on their fair market value.