Reactrack Winnings

Racetrack Winnings Guide

Q: What kind of records are required to deduct my racetrack losses from my winnings?

A: The Internal Revenue Service requries a record of the races, amount bet, amount won and amount lost in a diary that includes dates, locations and names of anybody who was with you.

Uncashed tickets and records from the racetrack could also be supplied as supplemental records.

The IRS requires showing total winnings as income and then losses, up to the amount of winnings, deducted separately.

Q: How much do you have to win before the track withholds taxes?

A: The Internal Revenue Service advises that gambling winnings of $5,000 or more on wagers with payoff of 300-1 or higher are subject to a 25 percent tax withholding.

You would have to provide the track with your name, address and Social Security number. The track will take out 25 percent and send it to the government.

Later, the track will send you a Form W-2G detailing the amount won and the amount withheld. You’ll need it for your tax return.