PA-20S/PA-65 Schedule T: 2024 PA Schedule T - Gambling and Lottery Winnings (PA-20S/PA-65 T) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
Pennsylvania Schedule T reports gambling and lottery winnings for entities filing the PA-20S/PA-65 Information Return. It separates Pennsylvania-source winnings from total winnings everywhere and subtracts the costs of tickets, bets and other wagering.
Who files this form
PA S corporations, partnerships, and limited liability companies filing as partnerships or PA S corporations for federal income tax purposes should complete and submit Schedule T if they have gambling or lottery winnings, including Pennsylvania Lottery winnings.
Pennsylvania Lottery cash prizes are reportable. Winnings from Powerball and Mega Millions tickets purchased in another state are also reportable by partnerships and S corporations and taxable to their owners.
What you'll need
Have the following information ready:
- The entity's complete name and nine-digit FEIN as shown on its PA-20S/PA-65 Information Return.
- All federal Forms W-2G showing winnings.
- Amounts of other gambling, betting, and lottery winnings, including cash and the fair market value or stated value of property, trips, services, and other prizes.
- Amounts paid for tickets, bets, and other wagering.
- A breakdown of Pennsylvania-source winnings and total winnings from all sources.
Submit a detailed statement explaining any amount reported, including the sources of winnings and specific amounts. Include the entity's name and FEIN on the statement.
Common mistakes
- Do not leave out winnings just because you did not receive a federal Form W-2G. Total winnings everywhere includes all reportable winnings from all sources.
- Do not deduct travel, meals, programs, tip sheets, or other expenses incurred to play a game of chance. Line 4 is for ticket, bet, and other wagering costs.
- Do not leave out noncash prizes. Include their fair market value or stated value.
- Remember to submit a detailed statement explaining reported amounts, with the entity's name and FEIN.
Questions people ask
What is the difference between the two columns?
Column (a) reports taxable gambling and lottery winnings from Pennsylvania sources. Column (b) reports taxable winnings from all sources, including winnings not reported on a federal Form W-2G.
Can ticket and betting costs reduce winnings?
Yes. Enter ticket, bet, and other wagering costs on Line 4, then subtract Line 4 from Line 3 in each column. Expenses such as travel and meals cannot be deducted.
Where do the Schedule T totals go on the information return?
Enter Line 5, Column (a), on the PA-20S/PA-65 Information Return, Section III, Line 8b. Subtract Line 5, Column (a), from Line 5, Column (b), and enter the difference in Section III, Line 8a.
How are proceeds from selling a lottery annuity treated?
Proceeds from the sale of an annuity from a lottery winner are taxable as Schedule D gain.