I won 5000 dollars on a scratch off and when I claimed and cashed it I was told I didn’t have to pay taxes on it at the time is that correct?

[DoninGA]

No, that is not correct.  You have to report the gambling winnings on your tax return.

To enter, edit or delete Gambling Winnings and Losses -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Less Common Income
• On Gambling Winnings, click the start or update button

Or enter w2g in the Search box in the upper right of the program screen. Click on Jump to w2g

[xmasbaby0]

No that was not correct.   All of your income is supposed to be entered on your tax return, including the money you won from the scratch off ticket.  That was gambling income.

Gambling

To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses

Gambling winnings are taxable income.  Losses are an itemized deduction.  If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect.

https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/

https://ttlc.intuit.com/questions/1900352-can-i-deduct-my-gambling-losses

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550  (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

Legally Blind + $1350

[Hal_Al]

Q. I was told I didn’t have to pay taxes on it at the time. Is that correct?

A.  Yes.  You do not have to pay tax, at the time you received the money.  But, you must include the income when you file your tax return.

There is a small risk that you might have to pay an underpayment penalty if this extra income results in you owing more than $1000 (federal) at tax filing time. 

[TomD8]

Your lottery winnings are taxable at the federal level.  But if you live in California or Delaware, they are not taxed by the state.