Residents: report the amount of wagering losses you. If they’re married to another educator and they’re filing jointly, the limit rises to $500. The expert concluded with a 99% level of certainty that Coleman had overall net losses during 2014 of at least $151,690. Nov. You may take a deduction for the Indiana portion of the federal net operating loss deduction (NOL) you added back on line 2 of Schedule 1 (This will be a net operating loss deduction from an earlier year(s) carried forward to 2017. To calculate your gambling losses, you should keep accurate records of your wins. The Tax Cuts and Jobs Act of 2017 eliminated most miscellaneous itemized deductions allowable that are over 2% of adjusted gross income (AGI) in. You may deduct gambling losses only if you itemize your deductions and kept a record of your winnings and losses. In 2021 the standard deduction for filing single is $$12,550 and married filing jointly is. For your 2022 taxes, which you will file by April 18, 2023, teachers, counselors and principals who aren’t reimbursed for buying supplies can deduct up to $250. Note that if you don't itemize, you can't deduct your gambling losses: If you had $5000 in winning sessions and $6000 in losing sessions, you have to report the $5000 as income, and you can't subtract out your losses, because you're not itemizing. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. You should only itemize if all your personal deductions, including gambling losses, exceed your standard deduction for the year. This limitation applies to the combined results from any and all types of. Other itemized deductions, such as gambling losses or impairment-related work expenses of a disabled person; As a general rule, you can deduct any expenses that are considered necessary and helpful in the production of your income. make sure you take note of all gambling losses for the year including other casinos. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. For example, if you had $10,000 as gambling winnings and $15,000 as losses, you can only deduct your losses up to $10,000. Deducting gambling losses. However, if you itemize deductions on your tax return and claim losses (up to the amount of your winnings), then you may be able to deduct your losses on Line 27, Schedule A (Form 1040). YOU DO NOT PUT $500 IN THE INCOME SECTION. Even if you have more losses than winnings, assuming you have nothing else to itemize and your losses dont exceed the standard deduction, you are freaking screwed and are actually going to PAY money. So that's one thing to. Gambling losses can be the hardest to prove IF you’re audited. You won't be able to deduct. With a refinance, you can deduct points over the life of the loan — so, as an example, you could deduct 1/30th of the points every year for a 30-year mortgage, which would total $33 per year for. You. As before, a. Under Federal law, gambling losses are deductible for Federal tax purposes for those who are able to itemize their deductions. Losses are deductible only if you itemize. In that case, your gambling loss deduction is limited to $7,500. Don't ever feel like you have to pay the IRS more tax than you actually owe. Due to the passage of the Tax Cuts and Jobs Act of 2017, most individuals choose to use the standardized deduction rather than itemizing deductions on their tax returns. You actually have to have winnings to deduct losses, and then you can only deduct what you won. For New York purposes (Form IT-196, lines 21 through 24), you can claim these deductions: 2017 IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses So there you have it, that's what "itemizing your deductions" means. If you're in the red for the year, don't expect to recoup those losses with tax deductions. You are leaving ftb. Enter your winnings in the Form W-2G topic or as Other Income. Gambling losses: Gambling losses are deductible to the extent of gambling winnings. Relatively few Americans itemize deductions on their tax return. “The amount of gambling losses you can deduct can never exceed the winnings you report as income,” a TurboTax explainer details. For tax purposes, gambling losses are tax deductible if you itemize your deductions and can provide detailed records of your winnings and losses. Winnings are reportable always. In addition, you won't be able to write off gambling losses unless you itemize your deductions . You can't reduce your tax by your gambling losses, if you claim the standard deduction. The bad part is say you win 10k and have. You may deduct $10,000. S. Need a coach for filing your income taxes?DoninGA. Write-offs can also only be for losses wagered in Michigan, not other states. Once you’ve totaled all your gambling losses for the year, put that total on Line 28 of. Detailed records could be a diary of receipts, tickets or other records that show accurate amounts of bets. The Internal Revenue Service allows you to deduct gambling losses if. Gambling losses cannot be greater than gambling wins for the tax year. For example, if you have $5,000 in winnings but $8,000. Student Loan Interest. You’ll need a record of your winnings and losses to do this. “If you win $10,000 and keep gambling for the purposes of tax deductions, you can win $10,000 and then lose $10,000, and then you take home nothing. The IRS takes a broad view of what constitutes a. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Let's say you won a total of $7k at 3 different casinos but you play at 5 different casinos. Can I deduct gambling losses if I don’t itemize? Even if you lost more than you won, you may only deduct as much as you won during the year. For additional information on withholding gambling winnings, please contact the office. To enter your gambling winnings and losses in. My question though — on only about 25% of these W2G events (ie, hitting over $1200 on a slot machine) — I had them deduct the standard 24% federal taxes. The winnings will still show up as income. In addition, gambling losses are only deductible up to the amount of gambling winnings. While you can write off some gambling losses if you itemize, that deduction can’t exceed the amount of your winnings. If you are a Wisconsin resident and paid a net income tax to another state or the District of Columbia on gambling winnings, you may be entitled to claim a credit for net income tax paid to the other state on your Wisconsin. In tax year 2023. So you ask, why not declare myself a “professional” gambler. That $300 applies whether you're a single filer or you file a joint return. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of Coleman. There is one golden rule to keep in mind when deducting gambling losses on your tax return. In addition, you won’t be able to write off gambling losses unless you itemize your deductions. If you do not have enough to itemize, however, you cannot deduct the gambling losses. All income from gambling). Luckily, if you itemize deductions on Schedule A, you can take a deduction for your gambling losses, but it can never be more than your gambling winnings. Illinois does not allow any deduction for gambling losses. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return ; Please refer to this IRS link for more information about reporting gambling winnings and losses. If you itemize your deductions on Schedule A, then you can also deduct gambling losses but only up to the amount of the winnings shown on your tax return. Your gambling loss deduction cannot be more than the amount of gambling winnings. If. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. Limitations apply. So, if you win $1,000. ) In addition, the itemized deduction for wagering losses is limited to the amount of gambling winnings. So if you won $2,500 gambling in 2014, the most you can deduct of your losses is $2,500 — no matter how much you lost. Another. The maximum deduction you can make is $2,000. They’re deductible, but only as itemized deductions. What if you don’t have enough deductions to itemize? Tough luck! Maybe. Any information provided to you on a Form W-2G. If you itemize instead of taking the Standard Deduction, you can deduct gambling losses up to the amount of your winnings. You can claim the lesser of your losses or $3000. It is the last category listed. But in order to take your gambling losses, you have to itemize, so the next $17,500 of gambling. You can't use it to offset your gambling gains in other years. As we all wondered, unless you have enough deductions to actually itemize, you’re stuck paying taxes on all of the winnings and your losses get lumped into the standard deduction. Note that if you don't itemize, you can't deduct your gambling losses: If you had $5000 in winning sessions and $6000 in losing sessions, you have to report the $5000 as income, and you can't subtract out your losses, because you're not itemizing. Yes, you need to report gambling winnings from form 1099-K. 2021 - $3,000 loss. Some states allow you to deduct gambling losses and offset taxes on your winnings. You would typically itemize deductions if your gambling losses plus all other itemized. You can’t deduct your losses without reporting your wins. 4. The 2017 tax law, known as the Tax Cuts and Jobs Act, also modified the definition of “gambling losses” under Section 165(d). The only requirements are that you cannot report more losses than your winnings, and you must have records to support your claim. In general, you can deduct your amount of gambling losses up to the amount of your gambling winnings. gambling winnings. As a result, you can't claim a deduction exceeding the amount of gambling income. The gambling losses will be on Schedule A, if you itemize your deductions, as opposed to. An amateur player, or someone who plays poker casually, can only use their losses for tax deductions if they report all of them as itemized deductions. Charitable Cash Contributions, Even If You Don’t Itemize. However, you must be able to substantiate your gambling losses with proper documentation, such as. All casinos will have terms and conditions to protect them from abuse or fraud. If you itemize deductions , you may claim gambling losses up to your gambling winnings. So you can use losses to “wipe out” gambling income but you can’t show a gambling tax loss. You must itemize all your deductions to deduct your gambling losses on your tax return. It is not ‘common’ for a person to go from 0 gambling losses to $130k. If you don't claim any mortgage interest, real estate taxes, state income tax, charitable, medical expenses etc. Gambling losses can only be deducted up to the amount of the gambling winnings. To enter the W-2G or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings. Since you lost $30k, you can itemize your deductions, file Schedule A, and prove to the IRS with a ledger and receipts that you lost $30k. But the itemized losses (which I’ve kept good electronic and diary record of) will offset ALL winnings. Instead, you must report your gambling income and gambling expenses separately. In another scenario, let’s say you again won $10,000 playing Blackjack, but you wagered and lost $12,000. Schedule D is what you will need to fill out. . You can still claim certain expenses as itemized deductions on Schedule A (Form 1040), Schedule A (1040-NR), or as an adjustment to income on Form 1040 or 1040-SR. You have to report that. It’s also important to note that the only way you can deduct gambling losses is if you are already itemizing your deductions on a Schedule A. If you itemize, you can deduct a part of your medical and dental expenses, and amounts you paid for certain taxes, interest, contributions, and other expenses. If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. Finally, gambling losses can, in certain circumstances, trigger the dreaded Alternative Minimum Tax (AMT). The amount of losses you deduct can’t be more than the amount of gambling income you reported on your return. You can only deduct losses to the extent that you have winnings, so if you have a. 2020 - $3,000 loss. You can only itemize your losses up to $10,000 on your tax returns. You can claim your gambling losses as "Other Itemized Deductions. Second, the losses you report can’t exceed your winnings. For example, if you had $10,000 in gambling winnings in 202 2 and $5,000 in gambling losses, you would be able to deduct the $5,000 of losses if you. How You can Have a Loss and Still Owe Taxes. ” You cannot reduce your gambling winnings by your gambling losses and report the difference. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. You can deduct only the part of your medical and dental expenses that exceeds 7. The maximum deduction is the amount of gambling income you reported on your tax return. DoNotPay provides you with the fastest, easiest, and most reliable way to file your gambling losses taxes. How much do you need to itemize for 2021? That might sound like a lot of work, but it can pay off if your total itemized deductions are higher than the standard deduction. You’ll need a record. Gambling losses can only be deducted to the extent of gambling winnings. However, this is only the case if you are able to itemize those losses. For example, if you had $9,000 of gambling losses and had $2,000 of gambling winnings, you can only deduct $2,000 of your losses (the amount of your winnings). Michigan gaming but also would allow them to deduct losses attributable to gaming that did not occur in Michigan. Additionally, winnings and losses must be reported separately, i. If you don’t take advantage of excess itemized deductions,. NOTE:. gov. Your deduction for charitable contributions generally can’t be more than 60% of your adjusted gross income, but in some cases 20%, 30%, or 50% limits may apply. If you claim the standard deduction, you won’t be able to write off. If you don’t report, you may get hit with higher withholding levels on the Federal level. Allowable gambling losses are deducted in full and are. • To report your gambling losses, you must itemize your income tax deductions on Schedule A . These losses can only be claimed against gambling income. If you want to offset your winnings with your losses, you must itemize on your tax return. This final category of itemized deductions includes items such as gambling losses to the extent of gambling winnings, losses from partnerships or subchapter S corporations, estate taxes on income. Claim your gambling losses up to the amount of winnings, as “Other Itemized. But if you have paperwork to support it, go for it. If you don’t keep careful records of your gamling losses, you could face an IRS gamling losses audit. You would be able to deduct $800 of gambling losses, which includes $300 of slot losses plus $500 of the $600 of lottery losses. Your total gambling deduction is limited to $800, the amount of your winnings. You must report your gambling winnings even if Wisconsin income taxes are not withheld. Residents: report the amount of wagering losses you. So that's when your deductions are more than the standard deduction, which is $13,850 for single and $27,700 for married filing jointly for 2023. (See “Are You a Pro?” below. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. If you're in the red for the year, don't expect to recoup those losses with tax deductions. If you itemize instead of taking the Standard Deduction, you can deduct gambling losses up to the amount of your winnings. The remaining $2000 cannot be carried forward or written off in the future years. Fortunately, you can deduct losses from your gambling only if you itemize your deductions. Finally, you. Gambling winnings must be reported as income, but gambling losses are deductible only as an itemized deduction. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. You can’t deduct gambling losses if you take the standard deduction. Amateur gamblers who don’t itemize can’t claim gambling loss deductions. Meaning if you win $2000 and lose $5000, only $2000 worth of gambling losses will qualify for deduction, and the rest can still be taxed. However, you can claim your gambling losses as a tax deduction if you itemize your deductions. An individual may claim itemized deductions on an Arizona return even if taking a standard deduction on a federal return. If you gamble at other times. "If you’re in the red for the year, don’t expect to recoup those losses with tax deductions. While the IRS does not have a gambling losses tax, it does allow for you to deduct gambling losses on your tax return in the form of a miscellaneous deduction. For example, if your AGI is $50,000, you can only deduct losses that exceed $1,000 (2% of $50,000). The only golden rule is that the gambling losses to be deducted cannot exceed the winnings reflected as gambling income. Meanwhile,. You have to actually have to have winnings to be able to deduct losses. Need a coach for filing your income taxes?DoninGA. Topic No. The good news: Yes, gambling losses can be claimed as an itemized deduction on your taxes, but only up to the extent of your gambling winnings and only if you itemize. If you do elect to itemize your federal deductions, calculate all your gambling losses from the year. Conversely, if you reported $12,000 of. "But, you must itemize your deductions. The deduction however, unlike the gambling deduction, is subject to the 2%. This limitation applies to the combined results from any and all types of. While the standard deduction is quick and easy, itemizing your taxes could save you more money. You can't deduct it directly from the winnings. Updated: Mar 5, 2023 / 12:00 PM MST. In order to obtain a deduction for your lottery losses, you should have the following three pieces information:Feb. Whether it's $5 or $5,000, from the. Those include total income, sources of that income, filing status, number of dependents, what deductions and/or credits one qualifies for, and a host of other variables. Gambling losses are reported on Schedule A (the form for itemizing). Claim your gambling losses up to the amount of winnings, as "Other Itemized. To deduct your losses from gambling, you will need to: Claim your gambling losses on Form 1040, Schedule A as Other Miscellaneous Deduction (line 28) that is not subject to the 2% limit. You can also deduct $900 of the additional losses on Schedule A if you itemize! (The $900 sessions gains on Form 1040 can be still be deducted from other losses on Schedule A. SHE OWES AT LEAST 25%. This means that to claim them, you must choose to itemize your. Track Your Winnings and Losses by Gambling Category The first thing. You must report the full amount of your winnings as income and claim your allowable. “So, if you bet $2,000 and didn’t win anything, you don’t get to deduct the $2,000 you lost. You never want to rely on your win/loss reports, but you can use them as ancillary data to back up your notes. Gambling losses. You report gambling winnings as Other Income on the 1040. ) The sessions will always break even (unlikely) or net out as a gain because losses are not allowed between sessions. If you use itemized deductions, your gambling losses qualify as a deduction on your federal tax return. You may only deduct gambling losses, to the extent of gambling winnings. You have to enter your W-2G forms showing $100,000 of winnings. If you don't itemize, you can't deduct the losses. The key is you can’t deduct losses that amount to. they can provide a win/loss report. Your total gambling deduction is limited to $800, the amount of your winnings. Losses do not offset winnings dollar for dollar. Starting in 2021 if you elected to itemize deductions on your federal return (you did not take the standard deduction) and deducted wagering losses from casual gambling, you may be eligible to deduct wagering losses. This means choosing to report your itemized deductions rather than taking the standard deduction. To do this, you must itemize your. Let an expert do your taxes for you,. However, in 2021, that $300 is deductible. You may or may not receive Form W-2G Certain Gambling Winnings, but you can report all gambling winnings in the same place in the TaxAct program. Generally, you can only deduct charitable contributions if you itemize deductions on Schedule A (Form 1040), Itemized Deductions. Gambling winnings are reported on Form 1040 Schedule 1 Line 21 as Miscellaneous Income. For example, say you lost $5,000 playing blackjack on a weekend trip to Las Vegas. Mega Millions. “The U. If you reported your $5,661 of income as 'hobby income', you would still need to itemize to deduct the $1,300 to offset any income. Before the law, professional. Only professional gamblers can deduct non-wager losses and business expenses that create a net gambling loss. If they’re married to another educator and they’re filing jointly, the limit rises to $500. Say you've got a W2G of $4k which you report on your taxes. You don't report your. 63%. Also, the amount of gambling losses you deduct cannot be more than the amount of gambling income you reported on your return. Those betting sites should be issuing you a tax form. In 2013, North Carolina passed the Tax Simplification and Reduction Act (), which increased the standard deduction but eliminated many of the itemized deductions, including deducting for gambling losses. If you itemize, you can claim your gambling losses up to the amount of your winnings on Schedule A, Itemized Deductions, under ”Other Miscellaneous Deductions. some miscellaneous deductions can still be itemized. Therefore, if you lost $3,000 gambling, and won $1,000 of it back, only $1,000 can be deducted as a. Yes. In other words, you can’t have a net gambling loss on your tax return. Losses are reported on Schedule A line 16. How You can Have a Loss and Still Owe Taxes. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. The amount of losses you deduct can’t be more than the amount of gambling income you reported on your return. Remember to keep proof of your losses. ” You cannot reduce your gambling winnings by your gambling losses and report the difference. Gambling winnings are fully taxable according to IRS regulations but gambling losses can be deductible up to the amount of your winnings if you choose to itemize deductions on your tax return. Therefore, if you don’t itemize and take the standard deduction, you can’t deduct gambling losses. Yes, you are correct that you can zero out the income with the cost of the used items, but the reduction is only allowed to the extent of the earnings. Are gambling losses deductible? Gambling losses up to the amount of gambling winnings may be deductible if you itemize. Claim your gambling losses up to the amount of winnings, as "Other Itemized. Starting in 2021 if you elected to itemize deductions on your federal return (you did not take the standard deduction) and deducted wagering losses from casual gambling, you may be eligible to deduct wagering losses. It is the last category listed. If you’re in the red for the year, don’t expect to recoup those losses with tax deductions. Professional gamblers don’t have to itemize to claim losses—those also can go into a Schedule C. Gambling income is reported under the Federal Taxes / Wages and Income tab. 20 Most. In other words, you cannot claim losses that exceed your total winnings. You can't offset your losses dollar for dollar against your gains. Contact an IRS audits attorney today to schedule a consultation. As a recreational gambler, you cannot deduct any expenses related to gambling (other than losses as an itemized deduction). Gambling losses are an itemized deduction; you can only get a deduction if the combination of all of your other itemized deductions exceeds your standard deduction. "The full amount of your gambling winnings for the year must be reported on line 21, Form 1040. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. 504 to figure the portion of joint expenses that you can claim as itemiz-ed deductions. This means that to claim them, you must choose to itemize your. Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. What if you don’t have enough deductions to itemize? Tough luck! Maybe. You would be able to deduct $10,000 of gambling losses, but that doesn't mean anything if the standard deduction is more than your itemized deductions would be. You can't offset your losses dollar for dollar against your gains. Also note the $11K will be included in your AGI. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. “For example, if you have $5,000 in winnings but $8,000 in. When you enter your gambling winnings in TurboTax, the interview will also ask you questions regarding gambling losses. On the flip side, for those who itemize their tax deductions, the IRS also allows people to deduct gambling losses. Gambling winnings are unique because you can also deduct your gambling losses and certain other expenses, but only in specific circumstances (see our article about this). You can claim an "above-the-line" deduction on Schedule 1. Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income. In addition, your gambling losses will only be able to be deducted on Schedule A if you itemize your deductions, as opposed to taking the standard deduction. The deductions only apply to gambling profits. Casualty losses are deductible only for losses due to federally declared disasters. Claim your gambling losses up to the amount of winnings, as Other Itemized Deductions. Gambling income is reported under the Federal Taxes / Wages and Income tab. In other words, if you are in the ~90% of americans who claim the standard deduction, you are screwed if you gamble, because you get taxed on gross winnings,. What you have to report as income is your actual winning bets of $5000, NOT the $2529, because that numbers would be net winnings (winnings-losses). To report gambling losses, you must itemize your income tax deductions on Schedule A. Net qualified disaster losses can be taken as an additional standard deduction by those who don’t itemize. The policy allows you to deduct your gambling losses up to the amount you won during the year. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. ). Itemize only. Itemized Deductions: To deduct gambling losses, you will need to itemize your deductions on Schedule A of your federal tax return. You won't be able to deduct gambling losses if you lost more money than you won (excess losses) or if you're taking the Standard Deduction. How tax reform could matter. The Tax Court's decision. 00 lotto tickets, and in VA the state gets I think 4% and federal its 24% for a total of 28%. It makes zero incentive to use any Sportsbook apps. You can enter your winnings, and then keep clicking through the interview to enter gambling losses. So, you should keep: An accurate diary of your gambling winnings and losses1. Michigan allows this—to an extent. Specifically, your income tax return should reflect your total year’s gambling winnings, from the big blackjack score to the smaller fantasy football. TurboTax keeps. This is where the TCJA raising of the standard. Another deduction you can take on your federal return to try to nip away at your tax bill is for the income taxes you must pay to your state on your winnings. e. Your gambling loss deduction cannot be more than the amount of gambling winnings. I keep reading about itemize deductions are required however when I change to itemized my refund is even less. Gambling losses are not a one-for-one reduction. And in order to deduct your losses, you have to be able to itemize your deductions. Gambling losses are. To put it another way, you can’t deduct $2,000 from your gambling wins and use the remaining $1,000 to offset other. See TSB-M-18 (6)I, New York State Decouples from Certain Personal Income Tax Internal Revenue Code (IRC). So, if you won $5,000 on the blackjack table, you could only deduct $5,000 worth of losing bets, not the $6,000 you actually lost on gambling wagers during the tax year. citizen or resident alien for the entire tax year. However, the deduction for those losses must be included with “itemized” deductions. Yes, you can deduct your losses if you itemize your deductions instead of taking the standard deduction. In other words, you can’t claim more in losses than you have in winnings, and you cannot claim the standard deduction. They’re deductible, but only as itemized deductions. The only way you can deduct losses directly against winnings is if this was your trade and business. $1,000,000, you don't have to worry about other itemized deductions. If you plan to deduct your losses, you must keep careful records and itemize your taxes in order to claim the losses. com. Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. My W-2 G gambling win is offset by losses. If you claim the standard deduction, you cannot deduct any gambling losses. So that's one thing to. Losses: You can deduct gambling losses that don't exceed your winnings as itemized deductions using Schedule A (Form 1040), but you need to provide records. So if you had winnings of $2,000 and losses of $5,000, your deduction is. Such receipts also come in handy if you itemize tax deductions and can deduct your gambling losses. The standard deduction amount depends on the taxpayer's filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. 02-01-2021 02:39 PM. Report all gambling winnings. Secondly, the deduction for your losses is only available if you are eligible to itemize your deductions (have mortgage interest, real estate taxes, medical, charitable deductions, etc. While you can write off some gambling losses if you itemize, that deduction can’t exceed the amount of your winnings. But if you don’t itemize, you cannot deduct those losses. You can claim an "above-the-line" deduction on Schedule 1. Gambling Losses. All deductions for expenses incurred in carrying out wagering transactions, and not just gambling losses, are limited to the extent of gambling. Also note that to report gambling losses, you must choose to itemize your deductions instead of taking the standard deduction. If you lost $1,000 on one trip and won $9,500 on another, though, you could claim the entire $1,000 in. Keep in mind that you. But you may be wondering if you can. Such receipts also come in handy if you itemize tax deductions and can deduct your gambling losses. Footnote 7 Gamblers can deduct their gross losses but only if they are itemizing deductions and these losses can only be used to offset gross winnings. 6k taxable income.