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Winnings from lotteries and raffles are gambling and therefore are included in gross income. In addition to cash winnings, the taxpayer must include income bonds, cars, houses and other noncash prizes at fair market value. NOL v Gambling | TaxMama The gambling winnings go on line 21, other income – and if they happen to offset each other – terrific. BUT…if you have provable gambling losses, report them – up to the amount of your gambling winnings. They go on a special line of the Schedule A (line 28) – and are not reduced by 2% of your adjusted gross income. Why do you want to ...

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