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Can I deduct gambling losses on my tax return?
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| Gambling winnings are
taxable on your tax return. You can deduct gambling losses
on your tax return only if you itemize tax deductions and only to the extent of your gambling winnings. Claim your gambling losses as
a miscellaneous tax deduction on Schedule A of Form 1040. It is important to keep an accurate
diary or similar record of your gambling winnings and gambling losses. To deduct your
gambling losses on your tax return, you
must be able to provide receipts, tickets, statements or other records that show the
amount of both your gambling winnings and gambling losses. You cannot deduct or carry forward a net gambling
loss on your tax return; even if you are a professional gambler. The IRS provides the following guidelines
for proving gambling winnings and gambling losses that you report on your on
your tax return:
 | an accurate diary or similar record regularly maintained by the taxpayer, supplemented
by verifiable documentation usually is acceptable evidence for substantiation of
gambling winnings and gambling losses. In general, the diary should contain at least the following
information:
| date and type of specific wager or
gambling activity; |
| name of gambling establishment; |
| address or location of gambling establishment; and |
| name(s) of other person(s) present with you at gambling establishment. |
| amount(s) of
gambling winnings or gambling losses. |
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| Verifiable documentation includes, but is not limited to,
gambling tickets, canceled
checks, credit records, bank withdrawals, and statements of actual
gambling winnings or payment
slips provided by the gambling establishment. When possible, the diary and available
documentation of the placement and settlement of a wager should be supported by such
documentation as hotel bills, airline tickets, gasoline credit cards, or affidavits or
testimony from responsible gambling officials regarding the wagering activity. |
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Related tax
information about gambling winnings and gambling losses |
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Miscellaneous Itemized Tax Deductions
Itemized Tax Deductions Directory |
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IRS publications about gambling losses:
For information on deducting gambling losses, refer to Tax
Topic 419, Gambling Income and Expenses. Refer to IRS Publication 529, Miscellaneous
Deductions for information on record keeping. For additional information, refer to
IRS Publication 525, Taxable and
Nontaxable Income. Also see IRS Publication
17, Your
Federal Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
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