The provision for this position within gambling winnings on 1040 US-Germany tax treaty is in Article 21 1. You cannot use your bad betting luck to claim winnijgs tax loss on your return. But you need to remember that as a casual gambler, your gambling winnings are fully taxable and must be reported on your income tax return. For questions on how to deduct gambling losses, refer to form on "Miscellaneous Deductions. Close: The determination of a W-2G or a misc form is whether or not a wager was made for the prize. Make it apparent that we really like helping them achieve positive outcomes. File Taxes with E-file.She does not have a Form W8-BEN, and as such the casino withholds 30% in federal taxes from her winnings. At the end of the calendar year, Susan will need to file Form NR with the IRS and report her $ of gambling winnings and federal tax withholding. Taxes and gambling winnings. Planning on winning big? When you file your taxes, you’ll report your winnings (everything you won minus the bet you placed) onto line 21, “Other Income,” on your Form. If you have gambling winnings, you must report them on Line 21 of Form You won’t be able to use Form EZ or A. But you can use software to prepare and efile your tax return with ease.