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February 13, 2024
Question

I can get a greater tax break for itemizing my deductions if I can include my gambling losses equal to my gambling winnings. I am not seeing the losses in deductions?

  • February 13, 2024
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1 reply

DawnC
Employee
February 13, 2024

You enter your losses on the screen after you enter the winnings.   Enter your winnings in the Less Common Income section, in the Prizes, Awards, and Gambling winnings line.  After entering your winnings, you will be asked about your losses.

 

If you itemize instead of taking the Standard Deduction, you can deduct gambling losses up to the amount of your winnings.

 

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. For example, if you have $5,000 in winnings but $7,000 in losses, your deduction is limited to $5,000.

 

See this article about gambling loss deductions for more information.   

 

• You can deduct your gambling losses, but only to offset the income from your gambling winnings. You can't deduct your losses without reporting any winnings.

• The amount of gambling losses you can deduct can never exceed the winnings you report as income.

• To report your gambling losses, you must itemize your income tax deductions on Schedule A. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses.

• The IRS doesn't permit you to ‌subtract your losses from your winnings and report the difference on your tax return. You must report your winnings in total and your losses in total.

 

 

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