Gambling losses

[samuelsahawneh]

I have 2 jobs, one is a w-2 where federal withholding is being taken off of my check, another is a 10-99 where no taxes are being taken off my check. I have lost tens of thousands of dollars in gambling this year, how do I go about reporting those losses and what are my options? I have them all documented.

[Loretta P]

Hello samuelsahawneh,

The IRS allows a taxpayer to deduct gambling losses up to the extent of gambling winnings. 

Example 1:

$1,000 in gambling winnings received on 10-1-2024

($1,000) in gambling losses incurred 10-1-2024 or earlier

$0 in taxable gambling winnings

Example 2:

$1,000 in gambling winnings received on 10-1-2024

($500) in gambling losses incurred 10-1-2024 or earlier

$500 in taxable gambling winnings

Example 3:

$1,000 in gambling winnings received on 10-1-2024

($5,000) in gambling losses incurred 10-1-2024 or earlier

$0 in taxable gambling winnings; however, the $4,000 in excess losses are not deductible

Can You Claim Gambling Losses on Your Taxes?