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Virginia gambling taxes

One of the most frustrating parts of being a non-professional sports bettor is calculating what amount of money you need to pay in taxes on your winnings. To help make that step easier for you, we’ve prepared our Virginia Gambling Taxes Calculator so filing can go quicker and you can return to your betting hobbies.

Dan Bradley By: Dan Bradley
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Table of contents

Do you have to pay taxes on gambling winnings in Virginia?

Yes, you have to pay taxes on gambling winnings in Virginia. Gambling winnings are taxed federally at a flat 24% rate and are also taxed at a state level.

The amount of money you pay in taxes will be proportional to the amount of money you win. Even if you don’t receive a W-2G form from a gambling operator, you are still responsible for reporting your winnings accurately and paying the correct tax amount.

What are the gambling tax rates in VA?

In VA, the gambling tax rates scale between 2% and 5.75% depending on the amount of money you win. Gambling winnings are part of your taxable income, so they will be counted in addition to any other income you’ve earned during a tax year.

While you may be able to get a deduction based on your winnings and losses, this is a somewhat unique scenario; you’ll only be able to deduct up to the amount of money you won from your losses.

Here are the gambling tax rates according to Virginia’s tax code. Note that these rules apply to all income; while you will still need to detail your winnings and losses, these numbers apply to all incomes earned.

Income Amount

Tax Rate

$3,000 or less

2%

$3,001-$5,000

$60 plus 3% of excess over $3,000

$5,001-$17,000

$120 plus 5% of excess over $5,000

$17,001 and higher

$720 plus 5.75% of excess over $17,000

How to report taxes for Virginia gambling winnings

Reporting taxes for Virginia gambling winnings is relatively easy, though it’s important to make sure you are doing so accurately. Here are the steps you’ll need to follow if you are not itemizing your taxes.

  1. Calculate the amount of your winnings and losses: You should be able to come up with these numbers if you’ve kept organized records of your winnings and losses, though you may also be able to get the numbers from a W-2G form. The key boxes to know on the W-2G are Box 1 (reportable winnings) and Box 4 (federal tax withheld).
  2. Add the amount to your tax form: Next, after calculating your winnings, input the total into the “Other Income” box of your 1040 tax form. You will also need this number in calculating your adjusted gross income for Form 760 (Virginia tax return).
  3. Submit your completed tax forms: Whether you are e-filing or sending your forms to the IRS in the mail, you’ll need to make sure you’ve submitted all required forms by April 15th of the given tax year.

Which forms do I need to file gambling taxes in Virginia?

To file gambling taxes in Virginia as a non-professional gambler, you will need to have the following forms on hand:

  • Form 1040 (U.S. Individual Tax Return)
  • Form 760 (Virginia Individual Tax Return)
  • Form 1099/W-2/etc (proof of income)
  • Form W-2G (Certain Gambling Income), if applicable
  • Receipts of sportsbook transactions, including all wins and losses for the calendar year

You may be able to file these on your own, but if you have any questions or concerns, we highly recommend consulting a tax professional in your area. They can help you in your preparations, answer any questions you may still have, and ensure you are filing correctly.

Are gambling losses deductible on my Virginia tax return?

Yes, your gambling losses may be deductible on your Virginia tax return. If you are itemizing your returns, you can deduct losses up to the amount of your gambling winnings. You will need to have gambling receipts, W-2G forms, etc., as proof of the numbers; if you are unsure, consult with a tax expert to see if deductions are possible.


FAQ

Do non-residents need to pay taxes on gambling winnings from Virginia casinos?

Yes, non-residents need to pay taxes on gambling winnings from Virginia casinos. Depending on whether your winnings were online or in-person, you’ll either receive a W-2G form in the mail or in your online gambling account. This form must be completed and included with your tax filing.

How does Virginia tax winnings from online gambling or daily fantasy sports?

Virginia has an escalating tax rate for winnings from online gambling and daily fantasy sports. Beyond the 24% federal tax on gambling winnings, there is a scaled rate based on the amount of money you won (the rate falls between 2% and 5.75%).

Are there any Virginia cities that impose additional taxes on gambling winnings?

No, there are no Virginia cities that impose additional taxes on gambling winnings. Your winnings from gambling are only taxed at the state and federal levels.

What should I do if I receive a W-2G form from a casino?

If you receive a W-2G form from a casino, you will need to fill out the form appropriately and include it when filing your tax paperwork. The W-2G form will apply to the state where you gambled, the state where the casino is located, and as income for taxes on your home and federal filings. However, you may be able to apply for a tax credit to avoid being taxed more than once on your winnings.

Author Details

Dan Bradley

Dan Bradley

Dan Bradley, a sports betting expert and author at VA Betting, brings a unique perspective with his background in junior hockey. Outside of evaluating Virginia sportsbooks, Dan dedicates his time to watching as many NHL games as he can.