My brother is a gambling addict and hasn't contributed anything to the household expenses. I can't claim him as a dependent because he earned more than $4,050 in income?

[jungledrew64]

Isn't there something that allows me to deduct his gambling losses from his earnings?

[DoninGA · Accepted solution]

Since his gross income is $4,050 or more you cannot claim him as a dependent.  The key is gross income which is before any type of deductions.

[Critter]

You cannot claim his losses AND you do not claim his income on your return in any way shape or form.

Now, on HIS tax return, when you enter the gambling winnings you may enter the losses at that point.  HOWEVER, the losses are capped to the winnings and the allowed losses can only be used if he itemizes deductions and the total of those deductions exceeds the standard deduction for his filing status.

[macuser_22]

He would also need a log or diary that documents all gambling winnings and losses that includes date, time, location, amount of winnings or losses, and the names of anyone with him.