ProntoPro Advisors

Thinking about deducting your gambling losses?

Here are some key points to keep in mind:

✅ You can deduct losses up to the amount of your winnings, but losses cannot exceed reported winnings.
✅ Keep detailed records and receipts, including a diary or similar record of your gambling activity.
✅ Itemize deductions on Schedule A to claim gambling losses. If you take the Standard Deduction, you can't reduce your tax by your gambling losses.
✅ Reporting winnings and losses separately is crucial. The IRS requires accurate documentation of both.
✅ Remember to report all gambling winnings, including those not reported on Form W-2G.

For professional gamblers treating gambling as a business, deductions for losses are possible, but proving this can be challenging. You must demonstrate legitimate engagement in gambling activities to turn a profit.

When it comes to deducting gambling losses, meticulous record keeping is key. Stay organized and maximize your deductions. Incremental steps lead to big wins!

The IRS announced January 29 as the official start to the 2024 filing season.

April 15 is the filing deadline with an extension deadline of October 15.

Taxpayers in Maine and Massachusetts have an April 17 deadline due to the observance of Patriot’s Day and Emancipation Day in those states.