PA-40 Schedule T: 2025 PA Schedule T - Gambling and Lottery Winnings (PA-40 T) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-40 Schedule T reports gambling and lottery winnings and wagering costs for you and, if applicable, your spouse. It calculates the winnings to report on your Pennsylvania personal income tax return and lists any Pennsylvania tax withheld from federal Forms W-2G.
Who files this form
Complete and include 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, whether or not you received 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
Have these available when completing Schedule T:
- Federal Forms W-2G showing winnings and any Pennsylvania tax withheld.
- Amounts of other gambling, betting, and lottery winnings, including cash and the fair market value or stated value of taxable noncash prizes.
- Records, receipts, and other documentation supporting ticket costs, bets, and other wagering.
- The taxpayer’s name and Social Security number. For a joint return, use the name and SSN shown first on the PA-40, even if only the spouse has winnings.
Include copies of federal Forms W-2G reporting withholding with your PA-40. Keep the documentation supporting your wagering costs.
How to file
Include Schedule T with your PA-40. The supplied text does not give a mailing address or e-file directions.
- Use column (a) for the taxpayer and column (b) for the spouse.
- Enter W-2G winnings on Line 1 and other reportable winnings on Line 2. Add them on Line 3.
- Enter documented ticket, betting, and other wagering costs on Line 4.
- Subtract Line 4 from Line 3 for each column. If costs exceed winnings, enter zero on Line 5.
- Add only the winnings from each column’s Line 5. Enter the total on Line 6 and PA-40 Line 8. If there are no net winnings, enter zero on both.
- Enter Pennsylvania tax withheld from Forms W-2G on Line 7 and include it on PA-40 Line 13.
Use whole dollars. Drop amounts below $0.50 and round amounts of $0.50 or more up to the next dollar.
If you discover changes to income or wagering costs after filing, include an amended Schedule T with Schedule PA-40 X. Complete Section III on page 2 of PA-40 X to explain the change in gambling and lottery winnings.
Common mistakes
- Using a spouse’s costs to offset your winnings. Spouses may not use each other’s costs to reduce winnings on this schedule.
- Deducting expenses other than wagering costs. Do not include travel, meals, programs, tip sheets, or similar expenses incurred to play a game of chance.
- Including older Pennsylvania Lottery ticket costs. For tax year 2025, costs of tickets for games sponsored by or supporting the Pennsylvania Lottery purchased before Jan. 1, 2025, are not allowed.
- Claiming costs without documentation. Keep records, receipts, and other support for ticket costs, bets, and wagering.
- Overlooking cash payments tied to a noncash Pennsylvania Lottery prize. Cash prize payments include federal and state tax withholding, sales tax payments, and other fees paid by the Lottery on the winner’s behalf that are included in the prize’s overall value.
- Leaving out required W-2G copies. Include copies of Forms W-2G reporting withholding with the PA-40.
- Omitting noncash Pennsylvania Lottery prizes from Tax Forgiveness eligibility income. Those prizes are not taxable, but they must be included in eligibility income when claiming Tax Forgiveness.
Questions people ask
Do I report winnings if I did not receive a Form W-2G?
Yes. Pennsylvania residents must report all PA-taxable winnings from all sources, with or without 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. However, include those prizes in eligibility income if claiming Tax Forgiveness on PA Schedule SP. Cash payments made by the Lottery on a noncash prize winner’s behalf, such as taxes or other fees included in the prize’s overall value, count as cash prize payments.
What if my wagering costs are greater than my winnings?
Enter zero on Line 5 for that column. Line 6 includes only positive winnings from the taxpayer and spouse columns. If there are no net winnings, enter zero on Line 6 and PA-40 Line 8.
Can I deduct the cost of playing Pennsylvania Lottery games?
Yes. You may deduct those costs from other winnings. For tax year 2025, Pennsylvania Lottery ticket costs from purchases before Jan. 1, 2025, are not permitted. You must be able to document the costs.