Guides

How gambling winnings are taxed, one question at a time.

• Form W-2G explained

  What a W-2G is, the $2,000 threshold for 2026, the 300x rule, and what to do when you get one or don't.

• Withholding vs. tax owed on gambling winnings

  Why the 24% taken at the window is rarely what you owe, and how to avoid a bill or penalty in April.

• Deducting gambling losses under the 90% rule

  From 2026 only 90% of losses count, capped at winnings, and only if you itemize. What that means in dollars.

• Keeping gambling records the IRS will accept

  The diary the IRS expects, the paperwork to keep with it, and why it matters more now that losses are capped.

• Professional vs. recreational gambler

  How the IRS decides whether gambling is your business, and what changes on your return if it is.

• Gambling winnings from another state

  When the state where you won taxes you, how your home state's credit works, and the states that break the pattern.