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Now the good news is that unlike income taxes, gambling winnings aren't subject to a progressive tax. This means that you'll pay the IRS the same percentage on $5,000 in winnings as you would on Play your tax cards right with gambling wins and losses Aug 28, 2018 · Wins and taxable income. You must report 100% of your gambling winnings as taxable income. The value of complimentary goodies ("comps") provided by gambling establishments must also be included in taxable income as winnings. Winnings are subject to your regular federal income tax rate.

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May 26, 2016 · 3. Winnings may be subject to withholding. Depending on the amount of winnings, the gaming establishment is required to withhold federal income taxes at a flat rate of 25%. Those subject to backup withholding have a 28% rate. The gaming establishment reports the withholding to the winner and to the IRS on Form W-2G.