Whether you play the lottery, slots, blackjack, roulette or another game considered gambling, you must report all of your winnings even if you end up losing money overall. But before you report your prize and gambling income, you need to know what does and doesn't count as income. Your winnings end up being included in your taxable income, which is used to calculate the tax you owe. That means you might have to pay taxes on those winnings. Like all other taxable income, the IRS requires you to report prizes and winnings on your tax return, too. If you itemize deductions and have proper documentation, you may be able to deduct gambling losses to offset your winnings, but not to reduce other taxable income. ![]() These winnings can include noncash prizes and pooled winnings with coworkers and friends. ![]()
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