PA-20S/PA-65 Schedule T: 2025 PA Schedule T - Gambling and Lottery Winnings (PA-20S/PA-65 T) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-20S/PA-65 Schedule T reports gambling and lottery winnings of PA S corporations, partnerships, and limited liability companies filing as either. It separates Pennsylvania-source winnings from winnings everywhere and subtracts ticket, bet, and other wagering costs to calculate
Who files this form
Complete and submit Schedule T if the entity has gambling or lottery winnings, including Pennsylvania Lottery winnings, and is a:
- PA S corporation;
- Partnership; or
- Limited liability company filing as a partnership or PA S corporation for federal income tax purposes.
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 from other gambling, betting and lottery activities, including cash and the fair market value or stated value of property, trips and services.
- The total costs of tickets, bets and other wagering.
- Separate totals for Pennsylvania-source winnings and winnings from all sources.
Submit a detailed statement explaining any amount reported, including the source of winnings and specific amounts. Include the entity’s name and FEIN on that statement.
How to file
Complete and submit Schedule T for reportable gambling and lottery winnings. The supplied text does not give a mailing address or e-filing directions.
To complete the schedule:
- Enter the entity’s name and FEIN as shown on the PA-20S/PA-65 Information Return.
- Use Column (a) for Pennsylvania-source winnings and Column (b) for winnings from all sources.
- Enter winnings from federal Forms W-2G on Line 1 and other gambling, betting and lottery winnings on Line 2.
- Add Lines 1 and 2 on Line 3. Enter ticket, bet and other wagering costs on Line 4.
- Subtract Line 4 from Line 3 in each column to complete Line 5.
- Transfer Line 5, Column (a), to Section III, Line 8b of the PA-20S/PA-65 Information Return. Subtract Line 5, Column (a), from Line 5, Column (b), and enter the difference in Section III, Line 8a.
Submit the required detailed statement explaining the reported amounts.
Common mistakes
- Leaving out winnings because no Form W-2G was received. Report all taxable winnings, whether or not a federal Form W-2G was received.
- Deducting expenses for playing. Do not include travel, meals, programs, tip sheets or similar expenses on Line 4. That line is for tickets, bets and other wagering costs.
- Leaving identifying information off the supporting statement. Include the entity’s name and FEIN.
Questions people ask
Are Pennsylvania Lottery cash prizes reportable?
Yes. Pennsylvania Lottery cash prizes are reportable for partnerships and S corporations.
What if a winning Powerball or Mega Millions ticket was purchased in another state?
Those winnings are reportable by partnerships and S corporations and taxable to their owners.
How do we report noncash winnings?
Include the fair market value or stated value of property, trips, services and other noncash winnings on Line 2.
Can ticket and bet costs offset winnings?
Yes. Winnings and losses, such as ticket and bet costs, can be offset within this income class. Travel, meals and programs related to realizing gambling income may not be deducted.
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.