I've seen vastly different answers on this question in various places so I'm hoping someone here can break the tie- Can I include my spouses gambling losses if we're filing jointly? Let's say I won $10k and they lost $10k with zero winnings, can I include their $10k in losses or is it only from the person who had the winnings?
treasury REG § 1.165-10 Wagering losses.
Losses sustained during the taxable year on wagering transactions shall be allowed as a deduction but only to the extent of the gains during the taxable year from such transactions. In the case of a husband and wife making a joint return for the taxable year, the combined losses of the spouses from wagering transactions shall be allowed to the extent of the combined gains of the spouses from wagering transactions.
filing jointly one spouse's losses can offset the other spouse's winnings. netting is not allowed so while one spouse may have a net loss of $10K if they have winnings and losses the winnings must be reported as income
example: spouse A has $20K of winnings and $10K of losses. spouse B has $10K of winnings and $20K of losses. filing jointly winnings to report $30K losses that may be deducted on Schedule A $30K
This is Federal law. it's possible if you have a state income tax its rules might be different.
When you file a joint tax return then all of your income is entered on the same tax return. And that will also include your combined gambling winnings AND your combined gambling losses.
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/
https://ttlc.intuit.com/questions/1900352-can-i-deduct-my-gambling-losses
2021 STANDARD DEDUCTION AMOUNTS
SINGLE $12,550 (65 or older + $1700)
MARRIED FILING SEPARATELY $12,550 (65 or older + $1350)
MARRIED FILING JOINTLY $25,100 (65 or older + $1350 per spouse)
HEAD OF HOUSEHOLD $18,800 (65 or older +$1700)
Legally Blind + $1350