Generally, nonresident aliens of the United States who aren't residents of Canada can't deduct gambling losses. Tax Guide for Aliens and Publication 901, U.S. Nonresident Alien Income Tax Return along with Schedule 1 (Form 1040) PDF to report gambling winnings. source gambling winnings, you must use Form 1040-NR, U.S. If you're a nonresident alien of the United States for income tax purposes and you have to file a tax return for U.S. Claim your gambling losses up to the amount of winnings, as 'Other Itemized Deductions.' Nonresident Aliens The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax. When you have gambling winnings, you may be required to pay an estimated tax on that additional income. You must report all gambling winnings on Form 1040 or Form 1040-SR (use Schedule 1 (Form 1040) PDF), including winnings that aren't reported on a Form W-2G PDF. Gambling WinningsĪ payer is required to issue you a Form W-2G, Certain Gambling Winnings if you receive certain gambling winnings or have any gambling winnings subject to federal income tax withholding. It includes cash winnings and the fair market value of prizes, such as cars and trips. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos.

Gambling winnings are fully taxable and you must report the income on your tax return. The following rules apply to casual gamblers who aren't in the trade or business of gambling.

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