How To Properly Report Taxes For PA Betting Wins

Written By Corey Sharp on February 24, 2023 - Last Updated on March 22, 2024
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The country is in the middle of tax season. April 18 will be here before you know it. A big question surrounding taxes is how winnings from betting should be accounted for PA online sportsbooks and online casinos.

PlayPennsylvania put together a list of frequently asked questions to be able to properly report any bet earnings for tax purposes.

Gambling Tax Calculator

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Tax Paid on Gambling Winnings
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Disclaimer: The tax calculator assumed a standard deduction of $13,850 (single) / $27,700 (married) and does not include any local or municipal taxes. This calculator is intended solely for general information and educational purposes. It is not intended in any way as financial, tax or legal advice It cannot be relied upon to determine the actual tax you owe to any federal, state or local tax authority. The results are an estimate only. The actual tax that you owe or any deduction you may be entitled to depend on your personal circumstances and you are responsible for seeking independent tax advice from a qualified individual. Catena Media and its Group Companies do not collect or save any information inputted into this calculator.

FAQs about reporting money won from betting

Do free bet winnings count toward taxes?

Yes. Any money won from gambling is considered taxable income by the Internal Revenue Service (IRS).

What types of gambling should be reported to the IRS?

  • Casino games
  • Slot machines
  • Keno
  • Poker tournaments
  • Lotteries
  • Sweepstakes
  • Raffles
  • Betting pools
  • Gameshows
  • Horse or dog races
  • Off-track betting
  • Bingo
  • Sports betting

What is the threshold to report gambling winnings?

If you win enough, you’ll have to fill out a W-2G. Here are the thresholds for certain gambling activities:

  • $600 or more or at least 300 times the amount of the sports wager
  • $1,200 or more from bingo or slot machine
  • $1,500 or more from keno
  • $5,000 or more from poker

Do you need to request a tax document from the PA sportsbook, or will it issue you one?

Bettors do not have to request a tax document. Online sportsbooks usually issue a W-2G to bettors above the threshold. Even if you do not receive a W-2G, taxpayers must report all gambling winnings on the other income line of the Form 1040.

Should you deduct your losses from any gambling winnings you had?

You can deduct losses from your gambling only if you itemize your deductions. If your losses are greater than your winnings, you’d only be able to claim the difference.

Should you count total winnings from ALL sportsbooks when considering the $600 limit, or is it only based on each sportsbook?

Technically, all winnings are considered income and should be reported on the income line of your 1040.

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Corey Sharp

Corey Sharp is the Lead Writer at PlayPennsylvania bringing you comprehensive coverage of sports betting and gambling in Pennsylvania. Corey is a 4-for-4 Philly sports fan and previously worked as a writer and editor for the Philadelphia Inquirer and NBC Sports Philadelphia.

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