How does gambling taxes work if your net is negative for the year?

[ridhamjoshi36]

Currently am down on my gambling this year, my net is negative. How do taxes work and do I owe any taxes?

[Bsch4477]

You report all of your winnings. If you itemize you deduct your documented losses but no more than what you won. 

[xmasbaby0]

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)

[Mike9241]

FYI in 2025 deductible gambling losses will be limited to 90% of gambling income. so win $100K and lose $110K only $90K will be deductible if you itemized. the other $20K is lost. 

[ridhamjoshi36]

So if I itemize, will I owe anything in taxes? 

[DoninGA]

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@ridhamjoshi36 wrote:

So if I itemize, will I owe anything in taxes? 

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The total of all your itemized deductions on Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

Standard deductions for 2025

Single - $15.750 add $2.000 if age 65 or older
Married Filing Separately - $15,750 add $1,600 if age 65 or older
Married Filing Jointly - $31,500 add $1,600 for each spouse age 65 or older
Head of Household - $23,625 add $2,000 if age 65 or older

[Bsch4477]

We don’t know since that depends on your other income. 

[Opus 17]

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@ridhamjoshi36 wrote:

So if I itemize, will I owe anything in taxes? 

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You list all your winnings as gross income.  You list your losses (up to but not over your winnings) as itemized deductions.  If your itemized deductions are already larger than your standard deduction without the losses, then every dollar of losses will offset a dollar of winnings.  However, if your itemized deductions before the gambling losses are less than the standard deduction, then some of your losses will be needed to climb over that standard deduction threshold and won't reduce your losses.

For example, the standard deduction for single in 2025 is $15,000.  Suppose all your other itemized deductions are $10,000, and your gambling losses are $20,000.  Your total itemized deductions are $30,000.  but since that is only $15,000 more than the standard deduction would have been, only $15,000 of your winnings will be offset. 

[ridhamjoshi36]

I think that bill stated that it starts for the 2026 tax year. So the tax year 2027 when we file. 

[Opus 17]

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@ridhamjoshi36 wrote:

I think that bill stated that it starts for the 2026 tax year. So the tax year 2027 when we file. 

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Correct, the 90% limitation takes effect in 2026.  However, the other rules we have talked about are in the law for 2025. 

[Mike9241]

yes  2026 not 2025