Do the W-2G amount and keep the casino win/loss statement. If you win at a sportsbook/casino, they are legally obligated to report your winnings to the IRS and to you if you win up to a certain amount, ($600 on sports, $1,200 on slots, and $5,000 on poker). If you lost $1,000 on one trip and won $9,500 on another, though, you could claim the entire $1,000 in. You should also have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings. If the digits are reversed, $2000 can be claimed as an itemized deduction. You can report as much as you lost in 2022, but you cannot deduct more than you won. For example, suppose a taxpayer entered two betting pools: One at the office and one among friends. 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 IRS advises gamblers to keep an accurate diary or record to substantiate wins and losses on a tax return. Amount of your gambling winnings and losses. Mar 17, 2023 9:00 AM EDT Original: Mar 13, 2020 Claiming gambling losses Gambling losses are indeed tax deductible, but only to the extent of your winnings, and require you to report all. Was this topic helpful? Yes, loved it Could be better Help Interactive Tax Assistant How Do I Claim My Gambling Winnings and/or Losses? ITA Home This interview will help you determine how to claim your gambling winnings and/or losses. On Schedule A, report your gambling losses on line 16, “Other Miscellaneous Deductions. Gambling losses taken as itemized deductions did not offset the winnings because of the standard deduction. First, the IRS will want you to itemize all of your deductions. For example, if you have $5,000 in winnings but $7,000 in losses, your deduction is limited to $5,000. It may be essential to note that you will only file your. 1. See more• The amount of gambling losses you can deduct can never exceed the winnings you report as income. Can I write off gambling losses in 2020? Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. 1991-114 [5] Sec. The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. But there are limits to itemizing your losses. To report your gambling losses, you must itemize your income tax deductions on Schedule A. You are allowed to list your annual gambling losses as an itemized deduction on Schedule A of your tax return. W-2G's are irrelevant, all but useless, and ought to be abolished. Gambling losses are only deductible if you itemize, and then only to the extent of your winnings. First, you report gambling winnings as You may receive a Form W-2G showing the amount of your gambling winnings and any tax withheld. Judge Choi remarks: 1 level 1 · 11 days ago So basically you won’t have to pay any taxes on the 50,000 in winnings. 2. First, the IRS will want you to itemize all of your deductions. Plan to keep track. 3 level 2 For instance, if you lose $3,000 on one trip to the casino and win $2,100 on another trip in the same year, you can write off $2,100 in losses to offset the $2,100 in winnings, leaving you with a total of $900 of taxable gambling income. Should i provide a win/loss statement when I file? I will have them for all of my books but should I only provide it if I am audited? June 5, 2019 3:56 PM last updated June 05, 2019 3:56 PM 0 2 3,085 Reply Bookmark Icon LindaA Expert Alumni If you itemize deductions ( Schedule A ), you may claim gambling losses up to your gambling winnings. The proper way to report it is: $50,000 win on Schedule 1. The proper way to report it is: $50,000 win on Schedule 1. Even if you lost more than you won, you may only deduct as much as you won during the year. professional gamblers are allowed to net their wins and losses . Any information provided to you on a Form W-2G. Since gambling losses can be deducted as an itemized deduction up to the total of reported gambling and prize winnings, enter your losses (if any) on the next screen, Gambling Losses. Can I write off gambling losses in 2020? Initially she included gambling winnings from Form W-2G. Gambling losses taken as itemized deductions did not offset the winnings because of the standard deduction. However, you can claim your gambling losses as a tax deduction if you itemize your deductions. 1 Best answer MargaretL Expert Alumni Yes, scratch off tickets can count as gambling losses - but there is a catch. In short: The only reason to actually deduct gambling losses would be if they — along with other deductions — are more than the standard deduction. Keep a Diary of Your Gambling Losses The IRS requires frequent gamblers to keep track of all of their winnings and. Judge Choi remarks: Gambling losses can be deducted from the tax if the person itemizes its deductions. 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. Any information provided to you on a Form W-2G. Judge Choi remarks: So basically you won’t have to pay any taxes on the 50,000 in winnings. Gambling losses taken as itemized deductions did not offset the winnings because of the standard deduction. I would do the $30,000 and $30,000. • The IRS doesn't permit you to subtract your losses from your winnings and report the difference on your tax return. The IRS advises gamblers to keep an accurate diary or record to substantiate wins and losses on a tax return. The tool is designed for taxpayers who were U. Gambling losses are only deductible if you itemize, and then only to the extent of your winnings. The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. . 100k. The name and address or locations of the gambling establishment. So my guess here is that your gambling loss deduction of $20k plus whatever other deductions you'd get by itemizing are only marginally higher than the standard deduction (enough higher that your tax bill drops by $200 or so). For example, if you spent $1000 at the casino but only won $200, you'll only be able to claim a gambling loss of $200. • You can’t subtract the cost of a wager from the winnings it returns. Keep good records and you'll be fine. A little extra work can pay big dividends in the long run. the amount you win and lose. You can deduct those gambling losses when you file next and accurately report your gambling income. You cannot deduct gambling losses for an amount greater than your gambling income. Do the W-2G amount and keep the casino win/loss statement. Amount of your gambling winnings and losses. First, you cannot deduct them without claiming any winnings. The amount (s) you won or lost. W-2G's are irrelevant, all but useless, and ought to be abolished. If you lost as much as, or more than. You didn’t have a million to gamble. If you're a professional gambler, you can deduct your losses as business expenses on Schedule C without having to itemize. The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. Secondly, they are part of your itemized deductions. 4. Related Information: I sold my. However, you can claim your gambling losses as a tax deduction if you itemize your deductions. If you hav. Key Takeaways. So if you lose $500 but win $50, you can. ” These losses are then deducted from your gambling winnings to reduce your taxable income, up to the amount of your winnings. citizens or resident aliens for the entire tax year for which they're inquiring. So if you lose $500 but win $50, you can only deduct $50 in losses on your federal income tax returns. Tax Tips 1/8 (Image credit: Getty Images) Gambling Taxes: You Have to Report All Your Winnings Whether it's $5 or $5,000, from the track, an office pool, a casino or a gambling website, all. You have to report what you have to report. Fill Out Schedule A: If your total itemized deductions exceed the standard deduction, you’ll need to fill out Schedule A of Form 1040. Gambling losses are only deductible if you itemize, and then only to the extent of your winnings. Gambling losses taken as itemized deductions did not offset the winnings because of the standard deduction. Claim your gambling losses up to the amount of. 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. Judge Choi remarks: You are allowed to list your annual gambling losses as an itemized deduction on Schedule A of your tax return. As noted, the IRS requires that you maintain records of your gambling activities if you hope to deduct losses. Information You'll Need Your and your spouse's filing status. I'm having the same issue. . the people you gambled with. [4] Doffin vs. 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. Furthermore, the law only applies to people who itemize their deductions, instead of taking the standard deduction (which is $12,500 for single people and $25,100 for married couples). Key Takeaways The standard deduction in tax year 2022 ranges from $12,950 to $25,900 depending on your filing status. Include the amount from box 1 as “Other Income” on Form 1040, Schedule 1 (PDF). If you had losses greater than your gains, you wouldn’t be able to claim the excess loss amount. Even better news is that gambling losses are not subject to either the 2% of AGI reduction of miscellaneous deductions or the phase out of itemized deductions for high-income taxpayers. You won’t be able to deduct the extra 10,000 because you are only able to deduct up to your gambling winnings. Both had a $10 entry fee, and the player won $100 from the office pool. Include the amount from box 1 as “Other Income” on Form 1040, Schedule 1 (PDF). An itemized deduction means an expense on eligible products, services, etc. According to the IRS, you must report the full amount of your gambling winnings each year on your federal taxes. . Good news…You can! However, the bad news is that gambling losses are only deductible up to the amount of your winnings. For example, if you have $5,000 in winnings but $7,000 in losses, your deduction is limited to $5,000. . Itemizing Gambling Losses. (Not $60,000, because you can't claim more losses than wins. Losses cannot exceed winnings. Initially she included gambling winnings from Form W-2G. They also know there's a legitimate way to whittle down that taxable wagering money. The date and type of your specific wager or wagering activity. As for "how much difference", it also depends on your tax bracket. e. Introduction This publication explains that you can no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. According to the IRS, you must report the full amount of your gambling winnings each year on your federal taxes. . If you itemize, you can claim all your tax year's losing bets against your gambling income. Know What Qualifies as a. Key Takeaways. Related Information: I sold my. Key Takeaways • You must report all gambling winnings—including the fair market value of noncash prizes you win—as “other income” on your tax return. Track Your Winnings and Losses by Gambling Category. Types of itemized deductions include mortgage interest, state or local income taxes, property taxes, medical or dental expenses in excess of AGI limits, or charitable donations. [Screenshot #5] **Say "Thanks" by clicking the thumb icon in a post Proving gambling losses for itemized deductions Hello I am reporting gambling income on my taxes this year. . Deductible gambling expenses include travel expenses to or from a casino. How to treat a gambling loss. Start filing The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. For example, if you spent $1000 at the casino but only won $200, you'll only be able to claim a gambling loss of $200. Writing off gambling losses: Everyone, or at least loyal readers of the ol' blog, knows by now that gambling winnings are taxable income. ( sources) However, if you received any W-2Gs, then reporting as above can possibly result in higher taxes. . Your records need to include: the date and type of gambling you engage in. So,. If you itemize deductions , you may claim gambling losses up to your gambling winnings. How much can I deduct in gambling losses? You can report as much as you lost in 2022, but you cannot deduct more than you won. For example, your medical and dental expenses are only deductible to the extent they exceed 7. . The losses you deduct can't be more than your reported. 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. . This is legitimately possibly the worst advice I have ever read on this sub, which is incredible. Itemize only Furthermore, the law only applies to people who itemize their deductions, instead of taking the standard deduction (which is $12,500 for single people and $25,100 for married couples). TurboTax prompts you to enter your gambling losses after you enter your gambling winnings. Typically, you will receive a Form W2-G from established gambling businesses, like a casino or race track, and not from things like a local bingo hall or an informal poker tournament. If you’re taking the standard deduction, you aren’t eligible to deduct your gambling losses on your tax return, but you are still required to report all of your winnings. Track Your Winnings and Losses by Gambling Category The first thing you need to do is have a detailed, accurate, and factual overview of every gambling win and loss you have registered or incurred. $50,000 loss on Schedule A. Gambling losses taken as itemized deductions did not offset the winnings because of the standard deduction. Start filing. It may sound complicated, but TaxAct will walk you through the entire. Deductible gambling expenses include travel expenses to or from a casino. Plan to keep track. And you can only do this if you’re itemizing your deductions. 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 itemize your tax deductions. Typically, you will receive a Form W2-G from established gambling businesses, like a casino or race track, and not from things like a local bingo hall or an informal poker tournament. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses. Help Interactive Tax Assistant How Do I Claim My Gambling Winnings and/or Losses? ITA Home This interview will help you determine how to claim your gambling winnings and/or losses. Do you have other income? Introduction This publication explains that you can no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. Gambling losses are only deductible as a miscellaneous itemized deduction, so you must itemize your deductions in order to claim the deduction. Losses must be documented. $50,000 loss on Schedule A. It is imperative to keep track of losses and winnings separately. Memo. Judge Choi remarks: To report your gambling losses, you must itemize your income tax deductions on Schedule A. S. The first thing. You should also have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings. To substantiate deductions, the taxpayer must identify and keep records of each transaction and show that the transaction meets other relevant requirements. You didn’t have a million to gamble. In short: The only reason to actually deduct gambling losses would be if they — along with other deductions — are more than the standard deduction. If you itemize your deductions, you can offset your winnings by writing off your gambling losses. Keep good records and you'll be fine. , that can be subtracted from the gross income to reduce the payable tax amount. You shouldn’t have to pay any state taxes either as the state tax is usually based upon the federal income that you make. Amount of your gambling winnings and losses. If you lost $7,500 through gambling that same year, then you would list those losses on Schedule A. 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. ”. 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 taxpayers who do not gamble as their trade or business, losses from gambling transactions can be deducted as an itemized deduction to the extent of any gambling winnings. . This cloud cotton tablecloth is versatile enough for everyday use but also suitable for special occasions. To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses. Claim your gambling losses on Form , Schedule A as Other Miscellaneous Deduction (line 28. Itemize only Furthermore, the law only applies to people who itemize their deductions, instead of taking the standard deduction (which is $12,500 for single people and $25,100 for married couples). the name and address of the places where you gamble. In 2023, that range is up to $13,850 to $27,700. First, you have to file Schedule A and itemize your tax deductions. Itemizing your deductions might benefit you if the amount of your deductions exceeds your standard deduction. You can deduct gambling losses if you itemize your deductions on your tax return, but you cannot deduct more than the gambling income you received. Commissioner, T. Can I write off gambling losses in 2020? You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Claiming the Gambling Deduction The way that you claim the gambling deduction is relatively simple. Gambling Losses May Be Deducted Up to the Amount of Your Winnings. Reversing the example above, if you had $5,000 in gambling winnings. If married, the spouse must also have been a U. You’ll need a record of your winnings and losses to do this. 1. You Can Deduct Losses if You Itemize Fortunately, you can deduct losses from your gambling only if you itemize your deductions. For example, if you have $5,000 in winnings but $7,000 in losses, your deduction is limited to $5,000. Winnings must include all winnings not just those shown on a W-2G. Refer to Publication 529, Miscellaneous Deductions for more information. You can deduct gambling losses if you itemize your deductions on your tax return, but you cannot deduct more than the gambling income you received. Other. The amount (s) you won or lost. Key Takeaways. 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. 2. , that can be subtracted from the gross income to reduce the payable tax amount. Record keeping 101 Serious bettors must not only be savvy with betting lines, but also with record keeping. Otherwise a casual gambler is only allowed to take itemized deductions only to the extent of income so not dollar for dollar and based on the 6 figures, I will think, you are filing as a Schedule C professional gambler. The bettor should report $90 in winnings, deducting the $10 fee. Start filing The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. To maximize your deductions, you'll have to have expenses in the following IRS-approved categories: Your expenses in certain categories must cross various thresholds in order to itemize. To substantiate deductions, the taxpayer must identify and keep records of each transaction and show that the transaction meets other relevant requirements. The date and type of your specific wager or wagering activity. Initially she included gambling winnings from Form W-2G. So, make sure you don’t deduct more than your total winnings. Key Takeaways • You must report all gambling winnings—including the fair market value of noncash prizes you win—as “other income” on your tax return. The names of other persons present with you at the gambling establishment. When you add $14,000 of gambling losses, that is $20,000 total itemized deductions, which means your new itemized deduction is $8000 more than the standard deduction, that's the amount of winnings that. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. If the digits are reversed, $2000 can be claimed as an itemized deduction. Since gambling losses can be deducted as an itemized deduction up to the total of reported gambling and prize winnings, enter your losses (if any) on the next screen, Gambling Losses. Gambling losses on a Schedule C would have an impact on your federal return the most. Types of itemized deductions include mortgage interest, state or local income taxes, property taxes, medical or dental expenses in excess of AGI limits, or charitable donations. First, you have to file Schedule A and itemize your tax deductions. First, you report gambling winnings as You may receive a Form W-2G showing the amount of your gambling winnings and any tax withheld. If you have losses from gambling, you may offset the taxes on your winnings. So my guess here is that your gambling loss deduction of $20k plus whatever other deductions you'd get by itemizing are only marginally higher than the standard deduction (enough higher that your tax bill drops by $200 or so). 1. Initially she included gambling winnings from Form W-2G. If you win at a sportsbook/casino, they are legally obligated to report your winnings to the IRS and to you if you win up to a certain amount, ($600 on sports, $1,200 on slots, and $5,000 on poker). 3. You can claim your losses as “other itemized deductions: gambling losses” on Form 1040, Schedule A, line 16. You can then itemize your losses on Schedule A as other itemized deductions. Initially she included gambling winnings from Form W-2G. ) Ignore the W-2G. The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. For example, if you won $5,000 through gambling in 2020, you would report that as taxable income. Gambling losses taken as itemized deductions did not offset the winnings because of the standard deduction. You won’t be able to deduct the extra 10,000 because you are only able to deduct up to your gambling winnings. For itemizing, the entry fee from the losing pool and other gambling losses could be taken as an itemized. I would do the $30,000 and $30,000. ( sources) However, if you received any W-2Gs, then reporting as above can possibly result in higher taxes. (Not $60,000, because you can't claim more losses than wins. Are gambling losses deductible? Gambling losses up to the amount of gambling winnings may be deductible if you itemize. , if you have a lot of other itemized deductions, then the gambling deduction would count more. You Can Deduct Losses if You Itemize Fortunately, you can deduct losses from your gambling only if you itemize your deductions. • You can’t subtract the cost of a wager from the winnings it returns. This is legitimately possibly the worst advice I have ever read on this sub, which is incredible. C. Claiming the Gambling Deduction The way that you claim the gambling deduction is relatively simple. See this article about gambling loss deductions for more information. You shouldn’t have to pay any state taxes either as the state tax is usually based upon the federal income that you make. The name and address or locations of the gambling establishment. You have to report what you have to report. In short: The only reason to actually deduct gambling losses would be if they — along with other deductions — are more than the standard deduction. For taxpayers who do not gamble as their trade or business, losses from gambling transactions can be deducted as an itemized deduction to the extent of any gambling winnings. So my guess here is that your gambling loss deduction of $20k plus whatever other deductions you'd get by itemizing are only marginally higher than the standard deduction (enough higher that your tax bill drops by $200 or so). However, you can claim your gambling losses as a tax deduction if you itemize your deductions. Was this topic helpful? Yes, loved it Could be better 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. These losses can only be claimed against gambling income. Gambling losses are only deductible if you itemize, and then only to the extent of your winnings. See this article about gambling loss deductions for more information. The deduction for gambling losses is found on Schedule A. Fortunately, although you must list all your winnings on your tax return, you don't have to pay tax on. 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. For example, if you are single and your itemized deductions would be $6,000, then you would normally take the $12000 standard. Related Information: I sold my. Tips for Deducting Gambling Losses 1. S. • You must report all gambling winnings—including the fair market value of noncash prizes you win—as “other income” on your tax return. 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. Initially she included gambling winnings from Form W-2G. Gambling losses can be deducted from the tax if the person itemizes its deductions. However, a note of caution: An. The names of other persons present with you at the gambling establishment. 2. Tax Tips 1/8 (Image credit: Getty Images) Gambling Taxes: You Have to Report All Your Winnings Whether it's $5 or $5,000, from the track, an office pool, a. Keep reading to learn more about how to ensure you know how to deduct gambling losses properly! Gambling, The IRS and Taxes: How to Deduct Your Gambling Income and Losses | Silver Tax Group How Tax Deductions Work Proving gambling losses on tax starts with a proper itemization of your deductions. Initially she included gambling winnings from Form W-2G. As noted, the IRS requires that you maintain records of your gambling activities if you hope to deduct losses. Additional Information • To report your gambling losses, you must itemize your income tax deductions on Schedule A. You shouldn’t have to pay any state taxes either as the state tax is usually based upon the federal income that you make. Gambling losses may be deducted as an itemized deduction. 4. • You can’t subtract the cost of a wager from the winnings it returns. So my guess here is that your gambling loss deduction of $20k plus whatever other deductions you'd get by itemizing are only marginally higher than the standard deduction (enough higher that your tax bill drops by $200 or so). You’ll need a record of. Record keeping 101 Serious bettors must not only be savvy with betting lines, but also with record keeping. Since the losses are directly proportional to the winnings, taxpayers can report them on the itemized deduction for the Schedule A list. 6001-1(a), Income Tax Regs [6] Adamson v. In addition to protecting the surface underneath from spills and heat damage, it enhances your eating area with a soft, textured touch and sometimes a pop of color. Any information provided to you on a Form W-2G. Start filing. 6001 sec. You cannot deduct gambling losses for an amount greater than your gambling income. See this article about gambling loss deductions for more information. Thanks to its long-staple Turkish cotton construction and four-ply gauze. You can then itemize your losses on Schedule A as other itemized deductions. For a 2022 update, view here: taxpayer must report their gross amount of gambling winnings on Form 1040 each year. Judge Choi remarks: 1 level 1 · 11 days ago So basically you won’t have to pay any taxes on the 50,000 in winnings. 3 level 2 Itemize only. Judge Choi remarks: The expert concluded with a 99% level of certainty that Coleman had overall net losses during 2014 of at least $151,690. Proving gambling losses on tax starts with a proper itemization of your deductions. For taxpayers who do not gamble as their trade or business, losses from gambling transactions can be deducted as an itemized deduction to the extent of any gambling winnings. You can deduct gambling losses from your federal income taxes, but only if you itemize your deductions on Schedule A (Form 1040). An itemized deduction means an expense on eligible products, services, etc. citizen or resident alien for the entire tax year. i. The losses you deduct can't be more than your reported. If you lost as much as, or more than, you won during the year, you won't have to pay any tax on your winnings. For tax purposes, you can only deduct losses up to the amount of your winnings. 3. 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. Gambling Loss: A loss resulting from games of chance or wagers on events with uncertain outcomes (gambling). You can deduct gambling losses from your federal income taxes, but only if you itemize your deductions on Schedule A (Form 1040). You won’t be able to deduct the extra 10,000 because you are only able to deduct up to your gambling winnings. . You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. [Screenshot #5] **Say "Thanks" by clicking the thumb icon in a post How much of the deduction may count may also depend on the amount of your other allowed itemized deductions. 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. ) Ignore the W-2G. You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. Gambling losses taken as itemized deductions did not offset the winnings because of the standard deduction. • To report your gambling losses, you must itemize your income tax deductions on Schedule A. 5% of your adjusted gross income (AGI). You report gambling winnings as “other income: gambling income” on Form 1040, Schedule 1, Schedule 1, line 8b. Second, you can only deduct gambling losses to the extent that you have gambling winnings. Second, you can only deduct gambling losses to the extent that you have gambling winnings. Information You'll Need Your and your spouse's filing status. A little extra work can pay big dividends in the long run.