@jlanza265 - this is the problem with gambling and taxes- and most don't understand the implications.
The winnings are taxable income and the losses are deductible, but only if you can itemize your deductions. you do not net the winnings and losses together ; they have to be reported separately.
So let's look at an example. $10,000 of winnings and $10,000 of losses. Looks like a breakeven, right?
The standard deduction for someone who is single is $13,850 in 2023
The $10,000 winnings get reported as income.
but there is no loss to itemize since you are already eligible for a $13,850 standard deducion.
so then there is tax to pay on the $10,000 winnings, even though you broke even when gambling.
