You asked the follow-up question: Hi @JohnB5677 ,
Thank you for your detailed response! I'd just like to confirm your answer to make sure I am understanding you correctly:
Let's assume I made one bet for the entire year, and I have the proper records according to your description. I wagered $15,000, and took home $20,000. Let's also assume I had no other gambling expenses. I know I must claim $20,000 as my gambling winnings for the year. Would I claim my gambling losses to be $15,000? Or $0, since my only wager that year was for a winning bet?
In the example you described you would post $20,000 as winnings. Then you would post $15,000 as losses on Schedule A itemized deductions. "Gambling losses (gambling losses include, but aren't limited to, the cost of non-winning bingo, lottery, and raffle tickets)"
Itemized deductions do have many limitations, and it may not result in a full or even partial deduction.
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