In other words, you can’t have a net gambling loss on your tax return. Gambling Losses – The good news is that you can deduct gambling losses if you itemize your deductions but only to the extent of your gambling income. Although you may be able to offset your reported gains with gambling losses, the IRS anticipates that you will also have had gambling winnings that were under the W2-G reporting threshold and will raise this issue during an audit. Unfortunately, the IRS has a different viewpoint. Reporting Winnings – Many individuals believe that they only have to report the winnings for which they receive a Form W2-G.

Win $600 or more from all other games, but only if the payout is at least 300 times your wager.Win more than $5,000 in a poker tournament.Win $1,200 or more on a slot machine or from bingo.Gambling establishments will issue a Form W-2G if you: If your winnings at one time hit certain levels, the government requires the gambling establishment to collect your Social Security number and report your winnings to Uncle Sam on a Form W-2G. For most gamblers, their losses for the year will exceed their winnings, and since losses in excess of winnings are not deductible, most gamblers don’t bother to report either, which isn’t in line with the tax law’s filing requirements. For virtually everyone, gambling is a recreational activity and, as such, is done for fun. Gambling takes many forms: casino games, horse racing, sports book betting, lotto tickets, scratchers, bingo, etc.

Are gambling losses deductible in 2024