Wager Mage
Photo by Monstera Pexels Logo Photo: Monstera

Does IRS accept casino win/loss statements?

You can include in your gambling losses the actual cost of wagers plus other expenses connected to your gambling activity, including travel to and from a casino. Keep in mind that the IRS does not permit you to simply subtract your losses from your winnings and report the difference on your tax return.

turbotax.intuit.com - Can You Claim Gambling Losses on Your Taxes? - TurboTax - Intuit
How hard is it to overcome gambling addiction?
How hard is it to overcome gambling addiction?

It is difficult to manage the gambling problem without also addressing the other issues such as substance abuse and mental health disorders. If the...

Read More »
Last updated Nov 20, 2020
How are payouts calculated?
How are payouts calculated?

The math behind calculating payouts on sports bets When the odds are negative, change the number to positive and use this formula: 100/Odds * Stake...

Read More »
Last updated Dec 20, 2021

OVERVIEW

Gambling losses are indeed tax deductible, but only to the extent of your winnings. Find out more about reporting gambling losses on your tax return.

Claiming gambling losses

Gambling losses are indeed tax deductible, but only to the extent of your winnings and requires you to report all the money you win as taxable income on your return. The deduction is only available if you itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling losses.

Keeping track of your winnings and losses

The IRS requires you to keep a log of your winnings and losses as a prerequisite to deducting losses from your winnings. Your winnings include each win during the year. You typically cannot offset your winnings from one day with your losses from another day in order to report your net winnings or losses. Your winnings and losses typically need to be separated and reported individually. The IRS does allow you to net your wins and losses on the same day for the same type of wagering if you meet certain requirements. This means that if you win at the slots one day and lose the next day, you have to report the winnings on your tax return as income and then deduct the losses separately as an itemized deduction.

Typical sources of winnings and losses can include:

lotteries

raffles

horse and dog races

casino games

poker games

sports betting

Your records need to include:

the date and type of gambling you engage in

the name and address of the places where you gamble

the people you gambled with

the amount you win and lose

Other documentation to prove your losses can include:

Form W-2G

Form 5754

wagering tickets

canceled checks or credit records

receipts from the gambling facility

Limitations on loss deductions The amount of gambling losses you can deduct can never exceed the winnings you report as income. For example, if you have $5,000 in winnings but $8,000 in losses, your deduction is limited to $5,000. You could not write off the remaining $3,000, or carry it forward to future years. Reporting gambling losses To report your gambling losses, you must itemize your income tax deductions on Schedule A. You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. If you claim the standard deduction, you: are still obligated to report and pay tax on all winnings you earn during the year

will not be able to deduct any of your losses

What happens if I turn off VPN on my iPhone?
What happens if I turn off VPN on my iPhone?

To turn off the VPN on your iPhone, head to the "General" section of your Settings app. You can also usually turn off your iPhone's VPN directly...

Read More »
Last updated Mar 25, 2020
Can we withdraw 40 lakhs from bank?
Can we withdraw 40 lakhs from bank?

The government has amended the laws on withdrawing cash exceeding Rs 20 lakh from his/her bank account in a financial year. The law was amended via...

Read More »
Last updated Apr 6, 2022

Can we take 10000 from ATM?
Can we take 10000 from ATM?

Customers withdrawing Rs 10,000 or more from ATMs will have to go through an extra level of security, a One Time Password (OTP). This step has been...

Read More »
Last updated May 29, 2019
Why bet on negative odds?
Why bet on negative odds?

Negative numbers signify the favorite on the betting line. The negative number indicates how much you'd need to bet to win $100. If the number is...

Read More »
Last updated Oct 7, 2020
Why is 17 the most common random number?
Why is 17 the most common random number?

Seventeen is: Described at MIT as 'the least random number', according to the Jargon File. This is supposedly because in a study where respondents...

Read More »
Last updated Apr 12, 2018
Which lottery has best chances to win?
Which lottery has best chances to win?

Powerball has an 1 in 292,201,338 odds for its jackpot and 1 in 11,688,054 odds for its $1 million prize. Meanwhile, Mega Millions has 1 in...

Read More »
Last updated Apr 1, 2018