Q&A with Sean Reed Paula Burkes by Paula Burkes Published: Tue, September 27, 2016
Q: How are gambling winnings taxed?
A: Income from gambling, which includes winnings from the lottery, horse racing and casinos, is taxed at the taxpayer’s tax rate. Winnings aren’t limited to the above, but also include cash and noncash prizes. You must report the fair market value of noncash prizes like cars and trips.
Q: Do you only have to report the winnings from the W2G forms the casino issues?
A: As with all income, you’re required to report all winnings, not just those that for which the casinos issue a W2G.
Q: Can gambling losses offset gambling winnings?
A: Yes, you can deduct your gambling losses on Schedule A, Itemized Deductions. The total you can deduct, however, is limited to the amount of the gambling income you report on your return.
Q: How does a taxpayer keep track of what he lost?
A: Keep records of your wins and losses. This means keeping items such as a gambling log or diary, receipts, statements or tickets.
Q: Does the state of Oklahoma tax winnings from other states?
A: Yes, the state taxes worldwide income. So winnings from anywhere have to be reported to the state