Withholding from gambling winnings

In general, gambling winnings of more than $5,000 from any of the following sources in Colorado are subject to Colorado income tax withholding:

any sweepstakes or lottery;

any wagering pool, including payments made to winners of poker tournaments; and

any other wager if the proceeds are at least 300 times the amount of the bet.

Withholding is generally not required for gambling winnings from bingo, keno, and slot machines. Please see IRS Publication 505 for additional information regarding gambling winnings for which withholding is required.

Colorado income tax withholding, along with the amount of the winnings, are reported on IRS Form W 2G, Certain Gambling Winnings. The winner may claim credit for the withholding on their Colorado Individual Income Tax Return (DR 0104) and may claim a refund if the withholding exceeds the amount of tax due. A copy of any Form W-2G reporting Colorado withholding must be submitted with the taxpayer’s return.