When Lady Luck smiles in your direction, Uncle Sam is not far behind.

Whether you hit it big on the slots in Vegas or you won the Jackpot at a local Bingo tournament, there are some important things you should know about reporting gambling winnings and losses.  Here are some tips that apply to casual gamblers.

1. Gambling winnings are taxable and should be reported on Form 1040, line 21
2. Reduce the amount of tax you pay on your winnings by deducting your losses. If you itemize, you can deduct your gambling losses for the year but only up to the amount of your winnings.
3. Keep an accurate record of your gambling winnings and losses, just in case the IRS decides to question your claim.
4. A payer is required to issue you a form W-2G if you receive certain gambling winnings. Depending upon the amount of the winnings, the payer may report your winnings to the IRS and withhold federal taxes from your payout.
5. Even if you do not receive a form W-2G, you are still required to include the amount of your winnings on your Income Tax return.
6. Gambling income includes, but is not limited to, lottery winnings, horse races, raffles, casinos and raffles. Gambling income also includes the fair market value of prizes such as cars and trips.
7. Always play to win! Good luck!