Nonresident aliens use form 1040-NR for their gambling winnings reports.You can only deduct your gambling losses if you keep a record of both losses and winnings.
All gambling winnings must be reported to the IRS.Here are a few quick highlights about the Federal and State Laws regarding your gambling winnings. Highlights of the Federal and NJ Laws Regarding Gambling Winnings Since 2018, Federal Taxes have a uniform 24% withholding rate, while New Jersey specifically has a 3% State Tax. Because state tax has different governing bodies, the percentage of tax you must pay varies from state to state. Federal Tax is imposed by the government, whereas State Tax is only relevant based on specific states. The US operates using two taxation systems: Federal Tax and State Tax. Yes, you can deduct your gambling losses, but only up to an amount equal to your winnings and only if you can provide receipts, tickets, statements, or other records that show both your winnings and losses.
