Gambling Personal income types

W-2G: Certain gambling income

All gambling winnings are taxable including, but not limited to, winnings from:

  • Lotteries
  • Raffles
  • Horse races
  • Casinos

Gambling losses

Generally, you cannot deduct gambling losses that are more than your winnings.

Example: If you won $10,000 but lost $15,000. You may deduct $10,000.

California lottery

We do not tax California Lottery or Mega millions.

Visit Schedule CA Instructions for more information.

How to report

Federal return

Report your full amount of gambling winnings on U.S. Individual Income Tax Return (IRS Form 1040).

Report your losses on Itemized Deductions, Schedule A (IRS Form 1040).

California return

This income will be included in your federal adjusted gross income, which you report on your California return.

Gambling losses are deducted from the winnings as an itemized deduction.