2026 tax year
W-2G calculator
The 24% the casino withheld is a guess, not your tax. It's usually wrong in one direction or the other.
When a gambling win is large enough, the payer issues a W-2G and withholds a flat 24% for federal tax. But 24% is rarely your actual rate, in a lower bracket it over-withholds and you get money back; in a higher bracket it under-withholds and you owe more. This reconciles the withholding against the real tax the winnings cause.
Enter the W-2G winnings and your income.
Worked example, a $10,000 W-2G
A filer with $60,000 of other income hits a $10,000 jackpot reported on a W-2G:
| Figure | Amount |
|---|---|
| 24% federal withheld | $2,400 |
| Actual federal tax the winnings cause | $1,550 |
| Refunded at filing | $850 |
The casino withheld $2,400, but at this filer's 22% bracket the winnings only cost $1,550 in federal tax, so $850 comes back as a refund. A high earner in the 37% bracket would see the opposite: the 24% under-withholds and they owe the difference plus state tax.
Questions
When does a casino issue a W-2G?
At set thresholds by game: generally $1,200+ on slots or bingo, $1,500+ on keno, $5,000+ in a poker tournament, and $600+ at 300-to-1 odds elsewhere. Above the reporting level the payer often withholds 24%. Below it, no form is issued. But the winnings are still fully taxable.
Is the 24% my final tax?
No, it is a prepayment credited on your return, like paycheck withholding. Your actual rate depends on your total income. You reconcile at filing: refund if over-withheld, balance due if under. State tax is separate and usually not withheld at all.
What if I have no W-2G?
You still owe tax. The W-2G is a reporting form, not the trigger for the tax, all gambling winnings are taxable whether or not one is issued, and nothing was withheld on them, so set money aside. The gambling tax calculator handles the full picture.
Can I offset it with losses?
Only by itemizing, and for 2026 only 90% of losses are deductible, capped at winnings. If you take the standard deduction, losses do nothing and the 24% withheld may still fall short of your real tax. Keep a gambling diary either way.
Related tools
- Gambling tax calculator the full picture
- Lottery tax calculator lump sum vs annuity
- Quarterly tax calculator setting aside for a win
Estimate for the 2026 tax year. The W-2G withholding is a prepayment; state tax is extra. Not tax advice.