I lost money playing options on my investment platform. Can i deduct the losses from my taxes?

[AlanT222 · Accepted solution]

Yes, you can deduct your capital losses.  

Taxpayers can deduct capital losses on the sale of investment property but can’t deduct losses on the sale of property they hold for their personal use.

If a taxpayer’s capital losses are more than their capital gains, they can deduct the difference as a loss on their tax return. This loss is limited to $3,000 per year, or $1,500 if married and filing a separate return.

To enter a capital loss in TurboTax Online:

• Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
• Click Tax Tools (lower left side of the screen).
• Click Tools.
• In the pop-up window, select Topic Search.
• In the I'm looking for: box type, the capital.
• In the results box, scroll down and highlight capital loss, then click GO.
• Follow the onscreen instructions. You'll be prompted to upgrade to Premier if using a lower version of TurboTax Online.