Tax on Gambling winnings

If you win money in gambling, the entire amount is taxable. So the amount won should be reported in the tax return form. For a professional gambler it won’t be a problem as he is used to it. So he will know how to organize the daily earnings on gambling in to the tax return form. If the person is not a professional gambler, then he should take proper care to see that he records the amount of money won on gambling in to the tax return form. Also one cannot deduct any gambling losses if he has not won in any gambling for that tax year. Gambling wins include lotteries and raffles also. The tax deduction made on one’s tax return will not depend on the 2% AGI floor. In case if you win any lottery which pays on an installment basis then all the payments along with the interest obtained, if any should be reported in the tax returns. If you have got any withheld income tax from your gambling winnings then it should be shown in the tax returns. Failure to report the gambling winnings on the tax return may result in penalties for you. So double check the form to ensure that all the entries are made.