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New Member
posted Jun 4, 2019 1:26:33 PM

I lost 19,549 in gambling why want they accept it

0 1 795
1 Replies
New Member
Jun 4, 2019 1:26:34 PM

Please provide  more details on this request to help you. Below are the details for any Gambling losses.

The IRS requires you to keep a diary of your winnings and losses as a prerequisite to deducting losses from your winnings. This includes:

lotteries
raffles
horse and dog races
casino games
poker games
and sports betting

Your diary must include:

the date and type of gambling you engage in
the name and address of the places where you gamble
the people you gambled with
and the amount you win and lose

Other documentation to prove your losses can include:

Form W-2G
Form 5754
wagering tickets
canceled checks or credit records
and receipts from the gambling facility


Limitations on loss deductions

The amount of gambling losses you can deduct can never exceed the winnings you report as income. For example, if you have $5,000 in winnings but $8,000 in losses, your deduction is limited to $5,000. You could not write off the remaining $3,000, or carry it forward to future years.
Reporting gambling losses

To report your gambling losses, you must be eligible to itemize your income tax deductions on Schedule A. You are eligible to itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. This means that if you claim the standard deduction, you are still obligated to report and pay tax on all winnings you earn during the year. However, you will not be able to deduct any of your losses.
Only gambling losses

The IRS does not permit you to simply subtract your losses from your winnings and report your net profit or loss. And if you have a particularly unlucky year, you cannot just deduct your losses without reporting any winnings. If the IRS allowed this, then it's essentially subsidizing taxpayer gambling.

The bottom line is that losing money at a casino or the race track does not by itself reduce your tax bill. You need to first owe tax on winnings before a loss deduction is available. Therefore, at best, deducting your losses allows you to avoid paying tax on your winnings, but nothing more.

Get every deduction you deserve