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Jennifer Horikawa of Maui, Hawaii, plays on a slot machine at the Main Street Station hotel-casino in downtown Las Vegas on Tuesday, May 26, 2015. The Internal Revenue Service has proposed lowering the reporting level for gambling winnings from $1,200 to $600, a move that the casino industry and its patrons oppose. (Chase Stevens/Las Vegas Review-Journal) Follow Chase Stevens on Twitter @csstevensphoto.
A: Yes. Gambling winnings are generally taxable and must be reported your tax return. If you're a casual gambler, you'll generally report your gambling winnings as âother incomeâ on line 21 of IRS Form 1040. Other income includes winnings from lotteries, raffles, horse races and casinos. It also includes cash winnings and the fair market value of prizes, such as cars and trips.