Pennsylvania Form PA-40 Schedule T – Gambling and Lottery Winnings (2026)
Last reviewed: 2025-11-09
Use the Pennsylvania Tax Form Calculator Pennsylvania Form PA-40 Schedule T – Gambling and Lottery Winnings as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Pennsylvania state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Schedule T reports Pennsylvania-taxable gambling and lottery winnings in whole dollars. Include PA Lottery prizes and other gambling income (casino, racetrack, raffles, games of chance, W-2G/1099-MISC). Pennsylvania allows loss offsets against gambling winnings but not below zero. Use this schedule to total taxable winnings and carry the result to PA-40 Line 8.
What to include
- PA Lottery winnings: Report total prizes; smaller prizes may be non-taxable per current rules—enter any non-taxable amounts on the subtraction line before computing taxable PA Lottery income.
- Other gambling: Winnings from casinos (table games, slots, poker), sports betting, pari-mutuel wagering, fantasy sports, bingo, raffles, and out-of-state lotteries. Include fair market value of noncash prizes.
- Losses: You may subtract documented gambling losses, but only up to the amount of winnings being reported—losses cannot create a net loss.
Attach copies of Form W-2G, relevant 1099s, or statements as proof of withholding and prize amounts. Noncash prizes must have valuation support.
| SECTION I — PENNSYLVANIA LOTTERY WINNINGS | ||
| 1 | Winnings from PA Lottery (tickets purchased in Pennsylvania) | |
| 2 | Subtract exempt Pennsylvania Lottery prizes of $2,500 or less | |
| 3 | Taxable Pennsylvania Lottery winnings (Line 1 − Line 2) | |
| SECTION II — OTHER GAMBLING AND LOTTERY WINNINGS | ||
| 4 | Other gambling/lottery winnings (federal Form W-2G, etc.) | |
| 5 | Value of noncash prizes exceeding $600 | |
| 6 | Total other gambling/lottery winnings (Line 4 + Line 5) | |
| 7 | Gambling losses (cannot exceed winnings on Line 6) | |
| 8 | Net other gambling winnings (Line 6 − Line 7) | |
| SECTION III — TOTAL TAXABLE GAMBLING INCOME | ||
| 9 | Total taxable winnings (add Lines 3 and 8) | |
| 10 | Pennsylvania tax withheld on winnings (attach W-2G/1099) | |
| 11 | Tax on gambling winnings (Line 9 × 3.07%) | |
| 12 | Net tax due or overpaid (Line 11 − Line 10) | |
Examples
Example 1 — PA Lottery only: Jamie has $3,400 of PA Lottery prizes and $200 of small prizes that are not taxable under current rules. Schedule T shows Line 1 = 3,400, Line 2 = 200, Line 3 (taxable PA Lottery) = 3,200.
Example 2 — Casino play with losses: Riley’s W-2G totals show $5,000 in slot winnings. Diary/records show $3,800 of losses. Net other gambling winnings = $1,200; combined with PA Lottery totals, that amount is taxed at 3.07% on this schedule and flows to PA-40.
Example 3 — Withholding shown: Pat’s W-2G shows $1,500 PA tax withheld. Enter withholding on Schedule T so it is credited against the computed tax for the year.
Documentation & tips
- Keep a contemporaneous log of gambling sessions: dates, locations, game type, buy-ins, payouts.
- Retain W-2G/1099s and casino win/loss statements to substantiate winnings and losses.
- Noncash prizes (cars, trips) must be included at fair market value; retain award letters/appraisals.
- Losses are allowed only to the extent of winnings reported on this schedule—no net negative amount.
Last reviewed: 2025-11-09: If you believe this form requires an update, please contact us.
Related tools
- Form PA-40 — Individual Income Tax Return
- Form PA-40 W-2S — Wage Statement Summary
- Pennsylvania Department of Revenue — PIT Forms & Instructions
Use Schedule T whenever you receive reportable winnings. Accurate reporting—with supporting records—helps ensure the correct tax is paid (or refunded) when combined with withholding and other payments on your PA-40.
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Frequently Asked Questions
What is Form PA-40?
Form PA-40 is the Pennsylvania Individual Income Tax Return used by residents, part-year residents, and nonresidents to report taxable income and claim credits or deductions.
Can I amend to claim a refund?
Yes, if withholding or estimated payments exceeded revised liability.
Does PA tax long-term capital gains?
Yes—PA taxes “net gains from the sale, exchange, or disposition of property.” This wage page doesn’t include capital gains; model them with Schedule D.
What rate does Pennsylvania use?
Pennsylvania has a flat personal income tax rate of 3.07 % for all taxable income.
Where do I enter the exclusion amount?
You do not enter it separately; if fully excluded, you simply omit the gain from your PA-40. Partial exclusions must be shown on Schedule 19.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.