Gambling Winnings Tax Calculator

Written by: Alex Windsor
Fact checked by Brian Webb  
Updated: July 2, 2024

For many of you, gambling is most likely nothing more than a little hobby. Something to do on a quiet Friday night or simply a way to spice up the NFL watch-along experience with your buddies.

However, no matter how rarely you get to beat the house and take a win home, the Internal Revenue Service (IRS) is always ready to come knocking, asking for their slice of the pie.

Winnings from sports betting, casino gambling, lotteries, horse races, off-track betting, sweepstakes, and even game shows are all subject to taxation.

So, if you have put some of our sports betting guides to the test and earned yourself some dough, you should know that you must file that as taxable income. We’re here to help by offering you a handy and easy-to-use gambling winnings tax calculator. Adjust the values based on your winnings and state, and our free calculator will show what you owe.

How Gambling Winnings Get Taxed

The IRS requires you to report all winnings from gambling – even those sitting in your sportsbook or online casino account that you have not withdrawn yet.

Before going into detail about how to report your winnings, you must understand that the federal tax is 24% and applies to the total winnings amount, not just the net profit.

Therefore, if you placed a $100 bet and got a profit of $250, you will have to report $350, the entire amount involved in this gambling activity.

Now, you are probably asking yourself if the casinos and the sportsbooks will report your winnings for you, or is that for you to handle?

While there is no minimum amount of money you need to win to pay taxes, there are minimum winnings thresholds you must reach for the gambling company to send you a Form W-2G or even automatically withhold 24% of your winnings for federal income tax.

There are different thresholds for various gambling activities. While the thresholds for winnings from slots, video poker, and keno range between $1,200 and $1,500, the threshold for sports betting is $600 if the win pays at least 300 times the wager amount. However, keep in mind that you must report your winnings to the IRS even if you don’t reach the threshold.

If you reach the required threshold though, the gambling platform will send you the Form W-2G that you can file with your taxes. Note that if the platform fails to deliver the form, you will still need to report your winnings on your taxes.

For winnings of $5,000 or more, the gambling platform may withhold 24% federal income tax. This withholding will be indicated in Box 4 of your W-2G form. It’s important to read the terms and conditions of each gambling platform regarding the federal tax form. Also, some of the gambling losses you experience are deductible, and we’ll get more into detail about this below on this page.

How to Report Your Gambling Winnings

To successfully report your gambling winnings to the IRS, you must have all the necessary information available. This includes the type of each gambling activity, the date, location, and the exact amounts of winnings and losses.

Luckily, you can access all the needed information easily through the customer support center on the official website of your sportsbook of choice.

Once you have the information, you will report it under Other Income on Form 1040 Schedule 1. However, if you previously reached any of these thresholds, you would report the 24% that the gambling platform had automatically withheld for you.

What you must know is that 24% is the estimated tax. The right amount you owe, or you might get back, depends on which of the seven tax brackets you belong to. This is where our calculator comes into play.

Benefits of Using Our Gambling Winnings Tax Calculator

While 24% is the base federal income tax, the final tax amount will be based on the state you reside in, your marital status, and your total annual taxable income.

So, to calculate beforehand how much tax you will pay on your gambling winnings or how much from your gambling winnings you will keep in your pocket, all you need to do is fill in a few fields in our gambling winnings tax calculator.

The calculator is very user-friendly and will provide a clear overview of what you owe to the IRS in federal income tax due to your gambling winnings.

Gambling Tax Calculator

Which Forms of Gambling are Taxable?

All forms of gambling are taxable, including casino games, sports betting, slots, poker tournaments, and more. The law doesn’t only apply to cash winnings, but any other item you win, such as a car or a piece of technology. The tax is a flat 24% for all forms of gambling and all types of winnings. For non-cash prizes, the tax is calculated based on the fair market value of the prize you have received.

There are no tax exemptions in any form of gambling, and every casual player must pay a flat tax of 24% and a state tax. Regarding professional gamblers who make a living out of gambling,  they may file a Schedule C as self-employed individuals, which means that they can deduct the costs of other gambling-related expenses.

Deducting Your Losses from Gambling

Let’s get one thing out of the way: no one enjoys reporting their winnings. If this guide has made you sad, know there is a silver lining. Sort of.

The silver lining is the fact that your gambling losses are deductible. Well, at least some of them.

According to the law, you can deduct your gambling losses up to the winnings amount you reported. For instance, if you won $3,000 but lost $4,000, you can only deduct $3,000.

Yet, another great reason to keep track of your betting records.

Alex, a ten-year iGaming industry veteran and Managing Editor at BettingTools specializes in sports betting and betting tools. He also provides insightful reviews, ensures the accuracy of all offers, and maintains content quality helping you make informed choices. Combining professional expertise with a passion for football and soccer, Alex ensures we offer you a reliable resource, focusing on betting tools to assist with odds, accas, and other betting strategies.