PA-40 Schedule T: 2024 PA Schedule T - Gambling and Lottery Winnings (PA-40 T) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA-40 Schedule T reports gambling and lottery winnings and the costs of tickets, bets, and other wagering for you and your spouse. It calculates the winnings to report on your Pennsylvania personal income tax return and records Pennsylvania tax withheld on federal Forms W-2G.
Who files this form
Complete and include 2024 PA Schedule T with your original PA-40 if you or your spouse had gambling or lottery income or losses reported on PA-40, Line 8.
- Pennsylvania residents: Report all PA-taxable gambling and lottery winnings from all sources, even if you did not receive a federal Form W-2G.
- Nonresidents: Report all PA-taxable gambling and lottery winnings from Pennsylvania sources.
Noncash prizes from Pennsylvania Lottery games are not taxable. However, you must include them in eligibility income if you claim Tax Forgiveness on PA Schedule SP.
What you'll need
- Federal Forms W-2G showing your winnings and any Pennsylvania tax withheld. Include copies of W-2G forms reporting withholding with your PA-40.
- Records, receipts, and other documentation supporting your ticket costs, bets, and other wagering costs.
- Amounts of other gambling, betting, and lottery winnings, including cash and the fair market value or stated value of taxable noncash prizes.
- The taxpayer's name and Social Security number. On a joint return, use the name and Social Security number shown first on the PA-40, even if only the spouse has winnings.
How to file
Include Schedule T with your PA-40. The supplied text does not give a mailing address or e-filing directions.
- Use column (a) for the taxpayer and column (b) for the spouse. Report W-2G winnings on Line 1 and other winnings on Line 2.
- Add Lines 1 and 2 on Line 3. Enter documented ticket, bet, and other wagering costs on Line 4.
- Subtract Line 4 from Line 3 for each column on Line 5. If costs exceed winnings, enter zero.
- Add only the winnings from each column's Line 5. Enter the total on Schedule T, Line 6, and PA-40, Line 8. If there are no net winnings, enter zero on both lines.
- Enter Pennsylvania tax withheld from Forms W-2G on Line 7 and include it on PA-40, Line 13. Attach copies of W-2G forms reporting withholding.
Use whole dollars: drop amounts below $0.50 and round amounts of $0.50 or more up to the next dollar.
If you later discover changes to income or wagering costs, include an amended Schedule T with Schedule PA-40 X. Complete Section III on page 2 of PA-40 X to explain any change in gambling and lottery winnings reported on the amended PA-40.
Common mistakes
- Deducting gambling-related expenses: Do not include travel, meals, programs, tip sheets, or similar expenses as wagering costs.
- Claiming unsupported costs: Keep records and receipts documenting all ticket costs, bets, and other wagering.
- Using a spouse's costs: Spouses may not use each other's costs to reduce winnings.
- Including ineligible older tickets: Costs of tickets for games sponsored by or supporting the Pennsylvania Lottery purchased before Jan. 1, 2016, cannot be included on Line 4.
- Overlooking payments connected with a noncash Pennsylvania Lottery prize: Cash prize payments include federal and state tax withholding, sales tax payments, and other fees paid by the Pennsylvania Lottery on the winner's behalf that are included in the prize's overall value.
- Leaving out required W-2G copies: Include copies of federal Forms W-2G reporting withholding with your PA-40.
- Omitting noncash Pennsylvania Lottery prizes from Tax Forgiveness income: Although these prizes are not taxable, include them in eligibility income when claiming Tax Forgiveness on Schedule SP.
Questions people ask
Do I report winnings if I did not receive a Form W-2G?
Yes. Pennsylvania residents must report all PA-taxable gambling and lottery winnings from all sources, whether or not they received a W-2G. Nonresidents must report PA-taxable winnings from Pennsylvania sources. Report winnings not included on Forms W-2G on Line 2.
Are noncash Pennsylvania Lottery prizes taxable?
No. But you must include those winnings in eligibility income if claiming Tax Forgiveness on PA Schedule SP. You may deduct the cost of playing Pennsylvania Lottery games from other winnings.
Can my spouse and I combine our wagering costs to reduce either person's winnings?
No. Spouses may not use each other's costs to reduce winnings. Calculate each person's winnings and costs in separate columns.
What if my wagering costs are more than my winnings?
Enter zero on Line 5 for that person's column. Line 6 includes only positive winnings from the two columns. If there are no net winnings, enter zero on Schedule T, Line 6, and PA-40, Line 8.