{
  "id": "gambling-tax",
  "version": "fe0c39e5d5b6",
  "status": "published",
  "name": "Taxes on Gambling Winnings Calculator",
  "question": "Owe taxes on gambling winnings?",
  "summary": "Estimates the 2026 federal tax on gambling winnings (casino, sports betting, lottery), the 90% limit on deducting losses, what is withheld, and what you still owe when you file.",
  "category": "game",
  "subcategory": "betting",
  "url": "https://www.acalculator.org/game/gambling-tax-calculator",
  "markdown": "https://www.acalculator.org/game/gambling-tax-calculator.md",
  "kind": "function",
  "method": "Deductible losses = the lesser of 90% × losses and winnings. Tax on the winnings = Form 1040 tax with (other income + winnings, itemized deductions + deductible losses) − tax with (other income, itemized deductions), each taking the larger of the standard and the itemized deduction. Withheld = 24% × winnings when they are over $5,000 from a lottery, sweepstakes, pool, or a bet paying 300 times the wager. Left to pay = tax − withheld.",
  "assumptions": [
    "An estimate for tax year 2026 (IRS Rev. Proc. 2025-32 and IRC 165(d) as amended by P.L. 119-21), not tax advice.",
    "Winnings are counted net of the wager on each winning bet. Other income is ordinary income with no credits.",
    "Professional gamblers (Schedule C), nonresident aliens (30% withholding), backup withholding (24% when no taxpayer ID is given), and state tax are not included."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "win": {
        "title": "Gambling winnings",
        "description": "All your winnings for the year, less the wager on each winning bet.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "game": {
        "title": "Where you won",
        "description": "Casino games have no regular withholding; lottery, sweepstakes, pools, and bets paying 300 times the wager or more have 24% withheld over $5,000.",
        "type": "string",
        "enum": [
          "casino",
          "withheld"
        ]
      },
      "loss": {
        "title": "Gambling losses",
        "description": "Your losing bets and gambling expenses for the year, with records.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "item": {
        "title": "Other itemized deductions",
        "description": "State and local taxes, mortgage interest, and gifts to charity you could itemize (Schedule A).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "status": {
        "title": "Filing status",
        "description": "Your federal filing status for the year.",
        "type": "string",
        "enum": [
          "single",
          "mfj",
          "mfs",
          "hoh",
          "qss"
        ]
      },
      "income": {
        "title": "Other income",
        "description": "Your other income for the year before deductions: wages, interest, and so on.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      }
    }
  },
  "outputs": {
    "tax": {
      "label": "Federal tax on the winnings",
      "description": "Tax with the winnings and losses minus the tax without them.",
      "format": "money"
    },
    "withheld": {
      "label": "Withheld when paid",
      "description": "24% of winnings over $5,000 from lotteries, sweepstakes, pools, and 300-to-1 bets.",
      "format": "money"
    },
    "due": {
      "label": "Left to pay when you file",
      "description": "Tax on the winnings minus what was withheld; negative comes back as a refund.",
      "format": "money"
    },
    "lossDeduction": {
      "label": "Losses you can deduct",
      "description": "90% of losses, up to the winnings; worth something only when you itemize.",
      "format": "money"
    },
    "itemizing": {
      "label": "Deduction taken",
      "description": "Standard or itemized, whichever is larger.",
      "format": "text"
    },
    "rate": {
      "label": "Tax as a share of winnings",
      "description": "Tax on the winnings ÷ winnings.",
      "format": "percent"
    },
    "keep": {
      "label": "Net after losses and tax",
      "description": "Winnings minus losses minus the tax on the winnings.",
      "format": "money"
    },
    "notice": {
      "label": "Note",
      "description": "Which year’s tax rates were used.",
      "format": "text"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "win": 10000,
      "game": "casino",
      "loss": 0,
      "item": 0,
      "status": "single",
      "income": 60000
    },
    "outputs": {
      "tax": 1553,
      "withheld": 0,
      "due": 1553,
      "lossDeduction": 0,
      "itemizing": "Standard deduction (losses give no benefit)",
      "rate": 15.53,
      "keep": 8447,
      "notice": "Uses 2026 federal tax rates."
    },
    "text": "On $10,000.00 of gambling winnings you owe $1,553.00 of federal tax; $0.00 is withheld and $1,553.00 is left to pay."
  },
  "examples": [
    {
      "given": {
        "win": 10000,
        "game": "casino",
        "status": "single",
        "income": 60000
      },
      "expect": {
        "tax": 1553,
        "withheld": 0,
        "due": 1553,
        "keep": 8447
      },
      "source": "Tax Table rows $53,900 ($6,576) and $43,900 ($5,023); no regular withholding on slot machine winnings (W-2G instructions); Python 3 check in docs/progress/WP-112/check.py"
    },
    {
      "given": {
        "win": 50000,
        "game": "withheld",
        "status": "single",
        "income": 60000
      },
      "expect": {
        "tax": 10353,
        "withheld": 12000,
        "due": -1647
      },
      "source": "24% withholding on lottery winnings over $5,000 (Instructions for Forms W-2G and 5754, 01/2026); Tax Table row $93,900 gives $15,376; Python 3 check in docs/progress/WP-112/check.py"
    },
    {
      "given": {
        "win": 10000,
        "loss": 10000,
        "item": 20000,
        "game": "casino",
        "status": "single",
        "income": 60000
      },
      "expect": {
        "lossDeduction": 9000,
        "tax": 120,
        "keep": -120
      },
      "source": "IRC 165(d)(1) (P.L. 119-21): 90% of $10,000 of losses; taxable income rises $1,000 from $40,000 to $41,000 at 12%; Python 3 check in docs/progress/WP-112/check.py"
    },
    {
      "given": {
        "win": 3000,
        "loss": 5000,
        "game": "casino",
        "status": "mfj",
        "income": 80000
      },
      "expect": {
        "lossDeduction": 3000,
        "tax": 360
      },
      "source": "Losses are deductible only when itemizing: 90% × 5,000 = 4,500, limited to the $3,000 of winnings, is far below the $32,200 joint standard deduction, so 12% × 3,000; Python 3 check in docs/progress/WP-112/check.py"
    }
  ],
  "sources": [
    "IRS, Instructions for Forms W-2G and 5754 (01/2026). https://www.irs.gov/instructions/iw2g (retrieved 2026-10-05)",
    "IRC 165(d), wagering losses, as amended by P.L. 119-21 section 70114 (taxable years beginning after December 31, 2025). https://www.law.cornell.edu/uscode/text/26/165 (retrieved 2026-10-05)",
    "IRS, Topic no. 419, Gambling income and losses. https://www.irs.gov/taxtopics/tc419 (retrieved 2026-10-05)",
    "IRS, Rev. Proc. 2025-32 (Internal Revenue Bulletin 2025-45), sections 4.01 and 4.14. https://www.irs.gov/irb/2025-45_IRB (retrieved 2026-10-05)"
  ],
  "related": [
    "lottery-tax",
    "income-tax",
    "tax-bracket",
    "betting"
  ],
  "changelog": []
}