Win Your Super Bowl Bet? Don't Forget To Report Your Winnings

If you were rooting for the Green Bay Packers last night, you're probably feeling pretty good today. If you had a wager riding on the outcome, you have an extra reason for happiness.

The Internal Revenue Service, however, reminds you that you are obligated to report your winnings on your 2011 tax return. According to the IRS, gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips.

All gambling winnings must be reported on your Form 1040, including winnings that are not subject to withholding. It's reported on line 21, under other income. In addition, you may be required to pay an estimated tax on your gambling winnings.

If you were on the losing end of a bet last night, you may be able to deduct your loss, as long as you are iteming deductions.

"However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return," the IRS says in Publication 525. "Claim your gambling losses on Form 1040, Schedule A, as a miscellaneous itemized deduction that is not subject to the two percent limit.

If you do more than just bet on the Super Bowl once a year, it is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.