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Florida Gambling Taxes

You will need to pay tax on your gambling winnings in Florida. There is no state income tax, but you will be required to pay federal income tax on any gambling profits you earn.

This page shows you how to pay gambling taxes in Florida. We will also explain how to deduct any gambling losses from your winnings, which can decrease or eliminate your tax liabilities each year.

Florida gambling tax calculator

Gambling Tax Calculator

State
Filing Status
Total Annual Taxable Income
Gambling Win Amount
Tax Paid on Gambling Winnings
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You Keep From Your Gambling Winnings
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Disclaimer: The tax calculator assumed a standard deduction of $13,850 (single) / $27,700 (married) and does not include any local or municipal taxes. This calculator is intended solely for general information and educational purposes. It is not intended in any way as financial, tax or legal advice It cannot be relied upon to determine the actual tax you owe to any federal, state or local tax authority. The results are an estimate only. The actual tax that you owe or any deduction you may be entitled to depend on your personal circumstances and you are responsible for seeking independent tax advice from a qualified individual. Catena Media and its Group Companies do not collect or save any information inputted into this calculator.

How to pay federal taxes on gambling in Florida

The IRS will treat your gambling profits as a form of income. You will need to add your winnings to any other income earned throughout the year, such as your salary, bonuses, tips, capital gains, or dividends.

Your tax rate will then be determined by your total income and your marital status. These are the current federal income tax brackets.

RatesSingleMarried filing jointlyMarried filing separatelyHead of Household
10%$0 – $11,600$0 – $23,200$0 – $11,600$0 – $16,550
12%$11,600 – $47,150$23,200 – $94,300$11,600 – $47,150$16,550 – $63,100
22%$47,150 – $100,525$94,300 – $201,050$47,150 – $100,525$63,100 – $100,500
24%$100,525 – $191,950$201,050 – $383,900$100,525 – $191,950$100,500 – $191,950
32%$191,950 – $243,725$383,900 – $487,450$191,950 – $243,725$191,950 – $243,700
35%$243,725 – $609,350$487,450 – $731,200$231,251 – $365,600$243,700 – $609,350
37%$609,350+$731,200+$365,600+$609,350+

If you win a reasonably large sum of money, the payer (such as a casino, sportsbook, racetrack, or poker room) is instructed to take a 24% withholding tax. For example, if you win $100,000, you will receive $76,000; the other $24,000 will be withheld for future tax liabilities.

The 24% rate is an estimate of what you are likely to owe. After filing your tax return, you may get some or all of it back or need to pay extra.

These are the current thresholds for a withholding tax:

  • $1,200 or more (not reduced by your bet amount) from slot machines or bingo
  • $1,500 or more (reduced by your wager amount) from keno
  • $5,000 or more (reduced by the wager or buy-in) from a poker tournament
  • $5,000 or more from lotteries, sweepstakes, or betting pools
  • $600 or more from other types of gambling if the amount is at least 300 times the wager

When the payer takes a withholding tax, it is supposed to supply you with a Form W-2G. A copy of the form will also be sent to the IRS.

You can keep any Form W-2G documents that you receive and attach them to your IRS return to show how much withholding tax you have paid.

Steps to take when you file

Follow these steps to declare your gambling winnings on your tax return:

  • Download Schedule 1 (Form 1040). There is a link to the form at the bottom of this page. You can add your gambling income in Part 1 (8b). Detail any other additional income earned that year. Enter the total amount of additional income earned in line 10.
  • Go to the “Income” section of Form 1040 and scroll down line 8 (Additional income from Schedule 1, line 10). Enter the figure displayed in line 10 of the Schedule 1 form.
  • You can deduct any gambling losses from your winnings for tax purposes. Download Form 1040 (Schedule A) if you would like to do so. Head to line 16 and enter any gambling losses you sustained that year. The losses cannot exceed the figure on line 8b of Schedule 1 (Form 1040).
  • Enter your gambling losses in line 12 of Form 1040 and any other deductions you might be declaring. This line is titled: “Standard deduction or itemized deductions (from Schedule A).”
  • When you file Form 1040, attach the Schedule 1 and Schedule A documents, along with any Form W-2G documents you received and any evidence that backs up your losses, such as bank statements and losing tickets.

The FAQ section at the bottom of this Florida gambling taxes guide discusses the process for deducting losses in greater detail.

How to pay state taxes on Florida gambling winnings

You will not need to pay state taxes on Florida gambling winnings. Florida is one of nine states that do not impose a state tax upon residents’ income, along with Alaska, Nevada, South Dakota, Tennessee, Texas, and Wyoming.

Are lottery winnings taxable?

Yes, lottery winnings are taxable. While there is no state income tax in Florida, you will need to pay federal income tax on your winnings.

You can deduct the price of your lottery ticket and any other gambling losses. Your profit will then be added to the other income earned that year, and you will pay tax according to the bracket you end up in. Also note that sweepstakes casino taxes apply.

What if I win a lottery prize as part of a group?

You still need to pay tax on lottery prizes if you win as part of a group. Fill out Form 5754, which will allow the Florida Lottery to determine how much withholding tax to take from each member of the group.

The lottery will then supply each member with a separate Form W-2G. You can declare your lottery winnings when you file your IRS return, and you can attach Form W-2G to let the IRS know how much withholding tax has been taken.

Florida gambling tax FAQ

Yes, you can deduct your gambling losses from your winnings. That means you only need to pay tax if you receive a profit from all gambling activities in a particular year.

The amount you deduct cannot exceed your winnings. For example, if you win $12,000 and lose $14,000, you can deduct $12,000, eliminating the need to pay tax. However, you cannot deduct the remaining $2,000 from additional income earned, such as your salary.

You will also need to provide evidence to back your claims up. For example, you could supply a meticulous, itemized record of your wins and losses, along with any losing tickets, credit card statements, and other documents that support your claims.

Players cannot deduct related expenses, such as food and beverages at a casino or filling up your car with gas to drive to the racetrack.

If you lose or do not receive a copy of Form W-2 G, you can ask the casino to supply you with a replacement. Alternatively, contact the IRS and ask for a new copy, as the IRS will always receive a copy when you are supplied with this form.

The IRS will automatically receive a copy of any Form W-2G documents you are issued, so the government will always know if you secure a reasonably large win. There will also be a digital record of any payments you receive at an online sportsbook or gambling site.

You also run the risk of being audited if your lifestyle exceeds the income reported when you file your IRS return. For instance, if you only declare a modest income but drive a luxury car, live in a mansion, and wear high-end jewelry, the IRS could mount an investigation and discover your additional income.

You will be charged interest on any overdue federal income tax. The rate is 3% above the federal short-term interest rate. For example, if the federal rate is 4.5%, you will need to pay 7.5% interest.

The IRS may also charge a 0.5% monthly penalty for failure to pay up to a limit of 25% of the amount you owe. Meanwhile, failing to file your tax return is a crime, which can have serious consequences.

If your tax is seriously overdue, the government will take drastic action. It can seize your property, including your bank balance, home, and car, and your passport may also be revoked.

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