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manobz
New Member

Does gambling losses offset all taxes on winnings?

i won approx 9000 and was taxed about 3500 on my winnings i lost more than 9000 but even when i deduct just the 9000 i only get a few hundred dollars credited. i thought it was supposed to offset the taxes on the winnings
1 Reply
jerry2000
Alumni

Does gambling losses offset all taxes on winnings?

No. Gambling losses do not offset gambling winnings one for one. Gambling losses are an itemized deduction only. Itemized deductions provide no tax benefit until all of them added together are more than your standard deduction. Once your itemized deductions exceed your standard deduction, then each additional dollar of deduction reduces your tax by the percentage of your tax bracket. For example, if you are in the 25% marginal tax bracket, each additional dollar of deduction reduces your tax by 25 cents.

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