Gambling Personal income types
W-2G: Certain gambling income
All gambling winnings are taxable including, but not limited to, winnings from:
- Horse races
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.
We do not tax California Lottery or Mega millions.
Visit Schedule CA Instructions for more information.
How to report
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).
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.