Gambling losses
- Thread starter shagginass
- Start date
you can only deduct up to the amount that you reported you won and you'll need to prove it.
example: let's say you hit the triple at the track for $3000. you're gonna have to fill out and sign a paper before they pay you. they will report that to the IRS. if you can prove you lost $3000 at the track by providing the IRS with $3000 in losing tickets, you can offset that win by deducting the 3 dime loss but no more than that.
that's my understanding of the law anyway. fwiw.
example: let's say you hit the triple at the track for $3000. you're gonna have to fill out and sign a paper before they pay you. they will report that to the IRS. if you can prove you lost $3000 at the track by providing the IRS with $3000 in losing tickets, you can offset that win by deducting the 3 dime loss but no more than that.
that's my understanding of the law anyway. fwiw.
To add to Jack's comments, you can deduct gambling losses to the extent of winnings, but only as an itemized deduction.
On your tax return, you can deduct your total itemized deductions or the standard deduction, whichever is more beneficial. The common itemized deductions are property taxes, mortgage interest, charitable contributions (not donations to your bookie) and state taxes withheld. Gambling losses to the extent of winnings would also be an itemized deduction. If the itemized deductions, including your gambling losses, exceeds the standard deduction, you will get some tax benefit from deducting the losses.
In 2002, the standard deduction for married persons is $7,850 and for singles is $4,700. Check these numbers because they may have changed.
On your tax return, you can deduct your total itemized deductions or the standard deduction, whichever is more beneficial. The common itemized deductions are property taxes, mortgage interest, charitable contributions (not donations to your bookie) and state taxes withheld. Gambling losses to the extent of winnings would also be an itemized deduction. If the itemized deductions, including your gambling losses, exceeds the standard deduction, you will get some tax benefit from deducting the losses.
In 2002, the standard deduction for married persons is $7,850 and for singles is $4,700. Check these numbers because they may have changed.
Losing tickets are not enough. Anyone can go into the trash bin at the track and pick up a fistful of losing tickets. If you get audited they want to see daily ledgers; preferably with programs or Forms with the wagers listed on them. For sports betting, daily ledgers should be good enough. If you are serious, you should be tracking all your bets anyways. Its a bit of work, but you find out your strengths and weaknesses.
