When you win the payer is required to give you a Form W-2G. Receipt of this form should be your clear signal that you have a taxable event. How the tax math works. Unlike a business, gambling winnings are reported on one part of your tax return while any offsetting gambling losses are reported as a miscellaneous itemized deduction.
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The American gaming industry is booming. New casinos and sports betting parlors are popping up across the country, Las Vegas is thriving, lotteries are popular and online gambling is big. There are certainly plenty of opportunities to plunk down a bet if you enjoy gambling. And, if that's your thing, we hope you come home a winner.
However, if you are lucky enough to win some cash from a smart bet, don't forget that Uncle Sam wants his cut, too. So, before you run out and spend your jackpot, here are 8 things to remember about taxes on gambling winnings.
SEE ALSO: The Most-Overlooked Tax Breaks and Deductions
