Can you guide me on where to record gambling losses in my tax preparation?

2 Votes
1Answers
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7 months ago

I’m currently in the process of preparing my taxes for the year, and I want to ensure that I accurately account for my gambling losses. I understand that gambling losses are, in fact, deductible, but I’m having a bit of trouble locating exactly where on my tax documentation these should be recorded. I engage in occasional gambling throughout the year, on both online platforms and physical casinos, and I’ve kept a tracking of my losses.

However, I am a bit confused about where exactly these losses should be written down or inputted in my tax form. I’ve always been a DIY-type when it comes to preparing and filling out my tax returns, but this is the first time I’ve ever tried to claim gambling losses. I’m primarily using a generic tax preparation software.

I would greatly appreciate if someone could provide me with detailed, step-by-step instructions to guide me through the process. I’m just a bit concerned about doing this incorrectly and potentially facing consequences for games of chance tax errors. Any guidance or helpful tips from those who have done this before would be immensely helpful.

Answers:

0 Votes
7 months ago

Sure, I can walk you through it. Gambling losses can be deducted on Schedule A, the form for itemizing deductions, under “Other Miscellaneous Deductions”. This encompasses all losses from gambling, whether it’s from casinos, lottery tickets, or online platforms. This process is the same no matter how you fill out your returns, be it using a tax software or doing it manually.

However, there are a few things you should be aware of. You can only deduct gambling losses up to the amount of your winnings. This means that if you report winning $1000 from gambling and claim $1500 in losses, you can only deduct the $1000. Also, you will need to have good records supporting your claimed losses if the IRS ever asks for proof. This should consist of receipts, tickets, statements, or other documents showing both your winnings and losses.

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