Skip to main content
Level 2
October 30, 2024
Question

Gambling losses

  • October 30, 2024
  • 1 reply
  • 13 views

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.

    1 reply

    Loretta P
    Employee Tax Expert
    Employee Tax Expert
    October 30, 2024

    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? 

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"