You’ve heard the expression “the house always wins” when it comes to gambling, and usually the IRS wins more often than it loses as well. If you’re a gambler, particularly if you’re a high roller, you need to We can help you use every deduction you’re entitled to with a free Discovery Session. Just visit New Client Application or https://calendly.com/d/46r-49m-93k/10-minute-intro-call.
become a gambling bookkeeper. For non- professional gamblers, winnings are “above-the-line” taxable. Losses are “below-the-line” itemized deductions and thus deductible, but only to the extent of your winnings and only if you itemize. Casinos and other payors of your winnings may have to report your winnings to the IRS on Form W2G and send a copy to you. Maybe your winnings are $20,000 for the year –but how about your losses? Do they meet or exceed your winnings?
Most amateur gamblers are not good at recordkeeping. Gamblers, including recreational gamblers should keep contemporaneous records of their wins and losses in the form of a paper or electronic gambling log with:
- Date, name and address (or location) of the gambling establishment.
- Type of wagers you made Amounts you won or lost during each gambling session.
- Names of any other people with you during the session.
- Use a casino player’s card to establish a win/loss statement supplement your own records.
No matter how big a jackpot you win online or at a casino, you roll snake eyes if you don’t itemize gambling losses when filing your return.