The Massachusetts State website states the following regarding gambling losses:
Cash winnings are included in federal gross income and so you must include it in Massachusetts gross income. Cash winnings include:
Dog and horse track betting, jai alai, and other wagering transactions
- Sweepstakes and wagering pools
- Bingo or beano, keno and slot machines
- Poker tournaments, including casinos
- Raffles or any other events of chance
Losses occur when:
- The total amount you paid to gamble is greater than your total gambling winnings, or
- The total cost of lottery tickets is more than your total winnings on those tickets
For Massachusetts purposes, losses (up to as much as winnings) aren't deductible even if they may be claimed as an itemized deduction on U.S. Form 1040 (Schedule A). The exception is gambling activities that are considered a trade or business or any gambling establishment in accordance with MGL Chapter 23K.
Under the new provision a taxpayer may claim a deduction for gambling losses incurred in a calendar year only if the losses were incurred at any gaming establishment licensed in accordance with MGL ch 23K or a racing meeting licensee or simulcasting licensee and only if the taxpayer had wagering winnings from any such gaming establishment licensed in accordance with MGL ch 23K or a racing meeting licensee or simulcasting licensee in the same calendar year. The deduction allowed for such losses may not exceed the amount of such winnings included in gross income for the calendar year.
The above conditions must exist in order for your gambling losses to be deductible. Contact your gambling establishment to ensure all of these conditions are met before deducting your gambling losses.
Schedule Y may not yet be released for e-filing by Massachusetts yet. You can try typing Form Schedule Y in the TurboTax search bar.
Or, if your gambling is considered a trade or business which meets the following:
Gambling activities considered a trade or business:
You can deduct wagering losses (for as much as you won) from your personal income taxes, but only if your wagering activities are considered a trade or business.
For professional gambling, your gambling activity is considered a trade or business if it is:
- Pursued full time
- In good faith
- Done regularly
- To produce income for a livelihood
- Not a hobby
Click here for information regarding gambling losses in the state of Massachusetts.
Click here for additional information regarding Massachusetts deduction of gambling losses.
Click here for information on Turbo Tax Support.
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