Social Casino Tax deduction

[Austinrassle52]

So I had bad year playing social casinos online. 

I won around 95,000, but lost over 150,000.

I have all my purchase statements from each social casino, my gambling log organized by day session and casino, and all my bank/credit card transactions for withdrawals and deposit organized by month. 

Am I able to deduct my purchases from the social casino as gambling losses? 

[xmasbaby0]

Ouch.

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)

[Austinrassle52]

So the fact that it's a social casino doesn't affect the fact that I can deduct the purchases as losses?

I know it's kind of niche question, I've seen most CPA responses say yes, but just trying to get extra clarification. I'd hate to get audited and them come back and say you can't 

[PatriciaV]

The IRS considers all gambling income to be taxable. If you can document your losses, you can report those on your tax return as itemized deductions. This is true no matter what kind of gambling was involved.

[Mtbmike83]

Hey, 

   I have found myself in a similar situation. I actually made the decision to hire a tax lawyer due to the fact you cannot get a clear answer on this. Since most of these websites include your purchases in their reported winnings the thought of not being able to write off your purchases as losses is would be catastrophic.