You are required to report your winnings even if you don't receive a Form W-2G. Depending on the amount you win and the kind of wager you place, you may receive a Form W-2G reporting your winnings to both you and the IRS.You can’t use gambling losses to reduce your other taxable income. Your deductions for gambling losses can’t exceed the gambling income you claimed.However, you can claim your gambling losses as a tax deduction if you itemize your deductions. You can’t subtract the cost of a wager from your winnings.You are required to report all gambling winnings-including the fair market value of noncash prizes you win-as “other income” on your tax return.
