United States · Gambling income · 2026 return
Gambling winnings tax calculator.
Winnings are ordinary income, and from the 2026 tax year only 90% of your losses can offset them, and only if you itemize. Enter what you won, what you lost and your other income to see the federal tax the winnings add.
A single filer with $70,000 of other income who wins $12,000 and loses $12,000 owes $2,640 more federal tax if they take the standard deduction, because the loss deduction is not used. With $14,000 of other itemized deductions, itemizing wins and the extra tax is $726. Enter your own figures below.
Your numbers
Your result
How this is calculated
- Winnings go into income. All gambling winnings are taxable and are reported on Schedule 1, including winnings that no payer reported on a Form W-2G (IRS Topic 419).
- Allowed losses. For tax years beginning after 2025, the loss deduction is the smaller of 90% of your losses or your winnings (26 U.S.C. 165(d), Pub. L. 119-21 section 70114; Pub. 505).
- Itemize or not. Allowed losses are an itemized deduction. They are added to your other itemized deductions and compared with the 2026 standard deduction ($16,100 single or married filing separately, $32,200 joint, $24,150 head of household); the larger one is used.
- Tax on the winnings. Taxable income is figured with and without the winnings, each run through the 2026 brackets, and the difference is the extra tax.
- Balance. Extra tax minus federal tax already withheld (Form W-2G, box 4) is what you would still owe, or the amount withholding over-collected.
Worked example: single filer, $70,000 other income, $12,000 won, $12,000 lost
| Line | Itemizing ($14,000 other) | Standard deduction |
|---|---|---|
| Winnings | $12,000 | $12,000 |
| Losses entered | $12,000 | $12,000 |
| Allowed loss (90% of $12,000) | $10,800 | $10,800 |
| Itemized total | $24,800 | $10,800 |
| Deduction used | $24,800 | $16,100 |
| Taxable income without winnings | $53,900 | $53,900 |
| Taxable income with winnings | $57,200 | $65,900 |
| Extra federal tax from the winnings | $726 | $2,640 |
Under the rule that applied through 2025, $12,000 of losses would have wiped out $12,000 of winnings for an itemizer. For 2026 only $10,800 is allowed, so $1,200 of the winnings stays taxable even in the itemizing column. In the standard-deduction column the losses do nothing at all.
What this does not cover
- State income tax. Most states have their own rules for gambling income; check your state revenue department.
- Professional gamblers who file Schedule C, nonresident aliens, and winnings shared with other people through Form 5754.
- Limits on other itemized deductions, credits that phase out with income, alternative minimum tax and the net investment income tax.
- Tax years other than 2026. The 90% limit does not apply to 2025 and earlier returns.
- Whether a payer must file Form W-2G or withhold. The FAQ below summarizes the thresholds; the payer decides.
Method and assumptions
The calculator treats the other income you enter as adjusted gross income and subtracts either the 2026 standard deduction or your itemized total. Brackets and the standard deduction are the Rev. Proc. 2025-32 figures also used by the other TNAADO U.S. tax tools. The 90% factor and the limit to winnings are applied exactly as written in 26 U.S.C. 165(d). Gambling winnings are not netted against losses on the return; they are reported in full and the allowed losses are claimed separately on Schedule A, which is how this page models them.
Results vary with your actual income, deductions, credits and filing situation. This page uses the figures you enter and published IRS rules; it does not predict what you will earn or owe. This is general information, not tax, legal or accounting advice; confirm your own situation against the linked IRS instructions or with a qualified preparer. Nothing here collects or stores personal data.
Sources
- IRS Topic no. 419, Gambling income and losses, retrieved October 26, 2026
- IRS Publication 505, Tax Withholding and Estimated Tax (2026), retrieved October 26, 2026
- 26 U.S.C. 165(d), wagering losses, as amended by Pub. L. 119-21 section 70114 (Legal Information Institute), retrieved October 26, 2026
- IRS Instructions for Forms W-2G and 5754 (01/2026), retrieved October 26, 2026
- IRS Rev. Proc. 2025-32 (2026 brackets, standard deduction, capital gains breakpoints), retrieved October 26, 2026
- IRS Instructions for Schedule A (Form 1040), retrieved October 26, 2026
Cite this page: TNAADO Tools, "Gambling winnings tax calculator," tools.tnaado.ca/us/gambling-winnings-tax-calculator/, figures retrieved October 2026.
Common mix-ups
-
Often assumedIf a casino or sportsbook never sent me a Form W-2G, I do not have to report what I won.
What the source saysIRS Topic 419 says gambling winnings are fully taxable and that you must report all of them on your return, including winnings that are not reported on a Form W-2G. [1]
-
Often assumedI can deduct my gambling losses up to my winnings even when I take the standard deduction.
What the source saysIRS Topic 419 says you may deduct gambling losses only if you itemize your deductions on Schedule A and kept a record of your winnings and losses. [1]
-
Often assumedStarting in 2026 my losses still cancel my winnings dollar for dollar if I itemize.
What the source saysPublication 505 says that beginning in 2026 your gambling loss deduction on Schedule A is limited to the lesser of 90% of your gambling losses or your gambling winnings. [2]
- IRS Topic no. 419, Gambling income and losses
- IRS Publication 505 (2026), Tax Withholding and Estimated Tax
Checked against these sources on .
Frequently asked questions
Are gambling winnings taxable if I never got a Form W-2G?
Yes. IRS Topic 419 says gambling income includes lotteries, raffles, sports betting, horse races and casino winnings, and that you must report all of it, including winnings not reported on a Form W-2G.
How much of my gambling losses can I deduct for 2026?
The smaller of 90% of your losses or your winnings, and only if you itemize on Schedule A. That is the rule in 26 U.S.C. 165(d) for tax years beginning after December 31, 2025, and Publication 505 (2026) repeats it. Through 2025 the limit was 100% of losses up to winnings.
Do I have to itemize to deduct gambling losses?
Yes. Topic 419 says you may deduct gambling losses only if you itemize and kept records of your winnings and losses, such as a diary plus tickets, statements or receipts. If your itemized total is below the standard deduction, the loss deduction gives no benefit.
When does a casino or lottery withhold federal tax?
The Instructions for Forms W-2G and 5754 (01/2026) require 24% withholding when winnings minus the wager exceed $5,000 from sweepstakes, wagering pools, lotteries and sports wagering. Regular withholding does not apply to bingo, keno or slot machines, but 24% backup withholding applies if you give no taxpayer identification number. The reporting threshold for payments made in 2026 is $2,000.
Can losses be larger than winnings on my return?
No. The deduction cannot exceed the gambling winnings reported on the return, so a year with more losses than wins gives no deduction for the excess.
Not tax advice
This is an educational estimate built from the numbers you enter and published IRS rules. It is not tax advice and does not predict what you will earn or owe. Won on a lottery ticket? The lottery winnings tax calculator adds the lump-sum versus annuity comparison.