topic Re: Social Casino Tax deduction in Get your taxes done using TurboTax

Social Casino Tax deduction

Austinrassle52 — Thu, 23 Jan 2025 20:41:26 GMT

So I had bad year playing social casinos online.

I won around 95,000, but lost over 150,000.

I have all my purchase statements from each social casino, my gambling log organized by day session and casino, and all my bank/credit card transactions for withdrawals and deposit organized by month.

Am I able to deduct my purchases from the social casino as gambling losses?

Re: Social Casino Tax deduction

xmasbaby0 — Thu, 23 Jan 2025 20:43:49 GMT

Ouch.

Gambling

To enter the W-2G or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses

Gambling winnings are taxable income. Losses are an itemized deduction. If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect.

https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600 (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY $14,600 (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200 (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900 (65 or older/legally blind + $1950)

Re: Social Casino Tax deduction

Austinrassle52 — Thu, 23 Jan 2025 20:52:54 GMT

So the fact that it's a social casino doesn't affect the fact that I can deduct the purchases as losses?

I know it's kind of niche question, I've seen most CPA responses say yes, but just trying to get extra clarification. I'd hate to get audited and them come back and say you can't

Re: Social Casino Tax deduction

PatriciaV — Thu, 30 Jan 2025 01:06:27 GMT

The IRS considers all gambling income to be taxable. If you can document your losses, you can report those on your tax return as itemized deductions. This is true no matter what kind of gambling was involved.

Re: Social Casino Tax deduction

Mtbmike83 — Sun, 02 Feb 2025 14:33:54 GMT

Hey,

I have found myself in a similar situation. I actually made the decision to hire a tax lawyer due to the fact you cannot get a clear answer on this. Since most of these websites include your purchases in their reported winnings the thought of not being able to write off your purchases as losses is would be catastrophic.

Re: Social Casino Tax deduction

Deeder0408 — Thu, 06 Feb 2025 06:18:02 GMT

Please clarify. Does this apply to online "social casinos" using a SWEEPSTAKES model (like Chumba casino). If one spends more (real $) to get sweeps coin "gift bonuses" than they win can the amount lost be claimed on taxes as a gambling loss? Or are all cash winnings considered "sweepstakes" prizes and cannot claim any losses?

Re: Social Casino Tax deduction

Austinrassle52 — Thu, 06 Feb 2025 14:50:34 GMT

Yeah, I meant social sweepstakes casinos like chumba.

Re: Social Casino Tax deduction

Austinrassle52 — Thu, 06 Feb 2025 17:09:27 GMT

Yeah, I'd love to know what you hear back.

Re: Social Casino Tax deduction

Mtbmike83 — Thu, 06 Feb 2025 17:36:08 GMT

Will do. After meeting with him this week, he is fairly confident the IRS will view all money used to purchase SC packages can be itemized as a lose. When buying a package for 25 bucks but they give you 50 sc bucks, he believes 25 bucks of that will be viewed as free play due to the fact it is more than the dollar amount you put in. Unfortunately, not all social casinos provide detailed enough records for me to determine this for all of my gaming. I'm also paying a CPA with the law firm to file my taxes as this seems to be a convoluted gray area and if I can't write off losses I could be looking at upwards of 300k of alleged winnings that is not accurate due to the fact the social casinos lump in your purchases with your winning when you cash out.

Re: Social Casino Tax deduction

Deeder0408 — Mon, 10 Nov 2025 01:35:59 GMT

Did you ever get a firm answer about deducting Chumba Casino coin purchases (losses)? Please advise. Thank you.

Re: Social Casino Tax deduction

Austinrassle52 — Mon, 10 Nov 2025 01:46:35 GMT

My tax person just ran the losses. No issues so far. But yeah you need a very detailed spreadsheet of losses and request your redemption and payment history for the casino.

But yeah she didn't even question and ran it as casino winning and losses and she was 30 plus year retired IRS employee that now does personal taxes