Do I have to report winnings if I didn't get a W-2G?

Yes. All gambling winnings are taxable income regardless of whether a W-2G was issued. The W-2G is only required above certain thresholds (e.g., $1,200 for slot machines, $5,000 for poker tournaments), but the reporting obligation applies to all winnings.

How does NJ handle gambling losses differently from federal?

NJ allows full netting of gambling wins and losses within the same tax year on Line 24 of the NJ-1040 (net cannot go below $0). NJ does not follow the federal session method. The federal 90% loss cap (TY2026+) does not apply to NJ.

What is phantom income from gambling?

Starting in TY2026, the federal 90% loss cap under Section 165(d) means a gambler who breaks even still owes tax. If you win $20,000 and lose $20,000, you can only deduct $18,000 in losses - creating $2,000 of taxable 'phantom income' despite no actual profit.

Should I keep a gambling session log?

Yes. The IRS requires documentation of gambling sessions including date, location, type of activity, amounts wagered, and amounts won or lost. Detailed records are essential to support loss deductions on your federal return.

Gambling & Sports Betting Tax Checklist

Document checklist for sports bettors and gamblers: W-2G forms, session logs, platform statements, and NJ netting records.

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IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, I inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

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Gambling & Sports Betting Tax Checklist

Income Documents

Session Records

Federal Return Items

NJ-Specific Items

Supporting Documentation

Frequently Asked Questions

Related Pages

Have Your Documents Ready?

Gambling & Sports Betting Tax Checklist

Income Documents

Session Records

Federal Return Items

NJ-Specific Items

Supporting Documentation

Frequently Asked Questions

Related Pages

Have Your Documents Ready?

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