How to Declare Race Track Winnings on Tax Forms

If you've had a winning year at the track, you are required to declare your profits before you complete your taxes. You should also report any losses that may offset the wins.

Difficulty: Moderate

Instructions

1. Keep track of amount you won. Receipts, payout slips or handwritten notes detailing winnings are acceptable to the IRS. Race track taxes are not calculated alone but combined with all income from gambling.

2. Note any losses. You can deduct the amount from your winnings before you pay the racetrack tax.

3. Place your total winnings on line 21 of form 1040. You may not have a W-2G for winnings that are under the minimum but you should add those to the amount. Add any money won from lotteries, poker tournaments or casinos.

4. Decide whether to itemize deductions. Itemize if your itemized deductions exceed the standard deduction. You can only deduct gambling losses if you itemize.

5. Check the amount that you have and attach the forms that verify your large wins. If you have a problem verifying losses for casino wins and use a slot card, the casino can provide a won-loss statement upon request. You must track other expenditures on your own.