Can I deduct my gambling losses on my tax return? What kind of documentation should I have to do this?
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Tax Professional Answers
Harold Goedde
Gambling winnings are reported as “other income” on form 1040, line 21.
You can deduct gambling losses up to the amount of winnings. Losses are taken as a miscellaneous itemized deduction on form 1040, Schedule A, line, 28, but are NOT reduced by 2% of adjusted gross income as are other miscellaneous itemized deductions. Losses are not deductible if you use the standard deduction. All winnings are taxable regardless of whether a deduction is taken for losses.
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578 weeks ago
You can deduct gambling losses up to the amount of winnings. Losses are taken as a miscellaneous itemized deduction on form 1040, Schedule A, line, 28, but are NOT reduced by 2% of adjusted gross income as are other miscellaneous itemized deductions. Losses are not deductible if you use the standard deduction. All winnings are taxable regardless of whether a deduction is taken for losses.
John Dundon, II EA
Good response Harold. In addition I'd like to add that one of the questions I respond with is to ask whether the taxpayer considers themselves a 'professional gambler' and to make a determination as to whether or not they should be treated as such for tax purposes as there are benefits in so doing -assuming parameters are met and substantiation exists of course. If inclined check out this post about the subject
http://johnrdundon.com/who-is-a-professional-gambler/
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578 weeks ago
http://johnrdundon.com/who-is-a-professional-gambler/