Tax Matters for Gambling Winnings
Author: Jane Ryder
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
There are many tax issues we need to be aware of for taxpayers with gambling activity; lottery winnings, casino gaming, online gaming, and professional gamblers all may benefit from tax savings related to specific rules. We'll review the same-day losses above the line deduction, how to handle multiple W2-Gs for the same taxpayer, how to handle winnings prizes paid with items other than money, and other tax issues for the recreational gambler. For professional gamblers we'll discuss bona fide business expenses pre-and post TCJA sunset, hobby loss rules, and more.
Publication Date: September 2025
Topics Covered
- Professional gamblers
- Hobby losses
- Gambling
- Lottery winnings
- Prizes
- Taxable income
- Gambling: Same day losses
- W-2G
Learning Objectives
- Identify correct reporting for multiple W2-Gs, winnings other than cash, lottery winnings and more
- Explain tax savings for same-day losses, how to report them and how to defend them in an audit
- Determine eligible expenses and reporting for professional gamblers and changes which may be coming
- Recognize how to develop strategies for working with clients regarding limits to gambling losses and records we may need
- Explain how to analyze a client's possible exposure to additional tax related to compliance matters for gambling
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
