NORFOLK, Va. — It's been just over a year since the opening of Rivers Casino Portsmouth, the state's first fully built, non-temporary brick-and-mortar casino gaming operation.
The casino has allowed people in the Hampton Roads region and beyond to hit the slot machines and more. But those who have won money should know that gambling winnings are fully taxable and you'll have to report the income on your tax return.
Here's what to know about casino earnings when filing your 2023 taxes, all according to the Internal Revenue Service (IRS).
Payers required to issue tax document for gambling winnings
The IRS says those who get certain gambling winnings or have any gambling winnings subject to federal income tax withholding will be issued a "Form W-2G, Certain Gambling Winnings."
All gambling winnings must be reported on Form 1040 or Form 1040-SR, including winnings that aren't reported on Form W-2G.
According to the IRS, you may be required to pay an estimated tax on additional incoming when you have gambling winnings.
Gambling losses can be deducted
Gambling losses can be deducted if deductions are itemized on Schedule A (Form 1040) and if you kept a record of winnings and losses.
The IRS says the amount of losses deducted can't be more than the amount of gambling income reported on a tax return. Gambling losses up to the amount of winnings can be claimed as "Other Itemized Deductions."
IRS advises recordkeeping gambling winnings, losses
The IRS says those who deduct their losses should keep "an accurate diary or similar record" of gambling winnings and losses. The recordkeeping should include receipts, tickets, statements or other records that show the amount of winnings and losses.
