padirectfile Help - Filing Instructions
PA Schedule T
Line 8 - Gambling and Lottery Winnings
PA law imposes its income tax on PA residents on all gambling and lottery
winnings from any source, except prizes from playing the Pennsylvania State
Lottery. As a PA resident, you must include lottery winnings from other states
PA Law imposes its income tax on nonresidents on all gambling and lottery winnings from PA sources, except prizes from playing the Pennsylvania State Lottery.
Gambling and lottery winnings include cash, the value of property (automobiles, jewelry, electronic devices, appliances, clothes, etc.), the value of the use of property (trips, vacations, airline tickets, cruise, etc.), and other items of value. You may only deduct your costs of gambling, wagering, betting, and playing lotteries from your winnings. You may not deduct any expenses (programs, tip sheets, travel, meals, lodging, etc.) that you incurred to take part in gambling, wagering, betting, and lottery activities.
IMPORTANT: You may not deduct the cost of PA State Lottery tickets from other PA taxable gambling and lottery winnings.
If you purchase a Powerball ticket in Pennsylvania, whether a PA resident or not, a Powerball prize awarded by the Pennsylvania Lottery is not taxable. If you are a PA resident and purchase a Powerball ticket in another state, any prize you win is PA taxable income.
Report your PA taxable winnings on PA Schedule T. Spouses must report their winnings separately. The payers of prizes provide the Department with copies of the Federal Forms W-2G that they submit to the IRS.
If filing a joint return, each spouse must report their gambling activity separately. Spouses may not use each other's costs to offset the winnings of their spouse.
Line 1. Enter your total winnings from Federal Forms W-2G.
Line 2. Enter your total winnings from all other gambling, betting, and lottery activities. Include cash and the fair market value or stated value of property, trips, services, etc. (except Pennsylvania Lottery noncash prizes)
Line 3. Total winnings (Add Lines 1 & 2)
Line 4. Enter your total costs for tickets, bets, and other wagering.
Line 5. Gambling and lottery winnings. (Subtract Line 4 from Line 3, if Line 4 is more than Line 3, enter zero)
Line 6. Calculated.
Line 7. Enter any PA withholding from Federal form W2-G.
For detailed information on gambling and lottery winnings, refer to the PA-40 booklet online at www.revenue.state.pa.us.
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