$27,700 for married taxpayers filing jointly or qualifying widows/widowers. Bookmark Icon. S. Losses are reported on the Schedule A (Form 1040), Itemized Deductions. My point is if you only have evidence of a $50k loss that is all I would claim. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses on Form 1040, Schedule A, as a. The deduction is equal to the wagering losses claimed by the taxpayer as an itemized deduction on the federal income tax return for the same tax year. Amount of your gambling winnings and losses. In another scenario, let’s say you again won $10,000 playing Blackjack, but you wagered and lost $12,000. , you cannot reduce the gambling winnings by the gambling losses and report the difference. What if you don’t have enough deductions to itemize? Tough luck! Maybe. 504 to figure the portion of joint expenses that you can claim as itemiz-ed deductions. Such receipts also come in handy if you itemize tax deductions and can deduct your gambling losses. And no, you don't need to itemize either (Schedule A). LISA GREENE-LEWIS: Right. This is where the TCJA raising of the standard. Overall, gambling losses can be reported as an itemized deduction on Schedule A (Form 1040) of your federal income tax return. You can only deduct your losses up to the amount of winnings, and you have to itemize to deduct gambling losses. To deduct your losses from gambling, you will need to: Claim your gambling losses on Form 1040, Schedule A as Other Miscellaneous Deduction (line 28) that is not subject to the 2% limit. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. 7. . For example, your medical and dental expenses are only deductible to the extent they exceed 7. This limitation applies to the combined results from any and all types of. You can claim your losses as “other itemized deductions: gambling losses” on Form 1040, Schedule. 07% Pennsylvania taxes net gambling winnings. In 2013, North Carolina passed the Tax Simplification and Reduction Act (), which increased the standard deduction but eliminated many of the itemized deductions, including deducting for gambling losses. If they’re married to another educator and they’re filing jointly, the limit rises to $500. In 2023, that range is up to $13,850 to $27,700. You may deduct gambling losses only if you itemize your deductions and kept a record of your winnings and losses. If you reported your $5,661 of income as 'hobby income', you would still need to itemize to deduct the $1,300 to offset any income. Some states either don't allow a deduction for gambling. Gambling losses can only be deducted up to the amount of the gambling winnings. so your balance is $100 after those bets. Furthermore, the law only applies to people who itemize their deductions, instead of taking the standard deduction (which is $12,500 for single people and $25,100 for married couples). 205 - Capital Gains and Losses: 03/06/2023: 206 - Pensions and Annuities: 03/06/2023: 207 - Farming and Fishing Income: 03/06/2023: 208 - Gambling Income and Expenses: 03/06/2023: 209 - Nontaxable Income: 03/06/2023: 210 - Earnings of Clergy: 03/06/2023If you itemize deductions, you can deduct your gambling losses for the year on line 27, Schedule A (Form 1040). For taxpayers who do not gamble as their trade or business, losses from gambling transactions can be deducted as an itemized deduction to the extent of any gambling winnings. "The full amount of your gambling winnings for the year must be reported on line 21, Form 1040. How much do you need to itemize for 2021? That might sound like a lot of work, but it can pay off if your total itemized deductions are higher than the standard deduction. Examples of medical and dental payments you can deduct To the extent you weren’t reimbursed, and with certain lim -If gambling winnings exceed $5,000, taxes will be withheld, and the recipient may have to pay up to 24% of the winnings towards these taxes. Taxpayers who are age 65 or older on the last day of the year and don't itemize deductions are entitled to a higher standard deduction. How You can Have a Loss and Still Owe Taxes. You can deduct your sports gambling losses, but only if you itemize your deductions on your taxes, and only on the federal return. $19,400 for head of household. The Tax Court's decision. First, you can only deduct losses up to the amount you won that year. Beginning with tax year 2018, the Tax Law allows you to itemize your deductions for New York State income tax purposes whether or not you itemized your deductions on your federal income tax return. Your gambling losses up to the amount of your winnings ($11K) can be deducted as an itemized deduction on Schedule A. The full amount of your gambling winnings for the year must be reported on line 21, Form 1040. You. Gambling losses can only be deducted up to the amount of the gambling winnings. If you claim the standard deduction, you won’t be able to write off. S. If you don’t itemize you are screwed! You cannot deduct losses on a standard deduction. Also, the gambling loss deduction is limited to the amount of gambling winnings that you report as taxable income. The summation would be winnings of $2529; however, the actual winning bets would be $5000. Gambling losses can zero out your gambling winnings, but they can’t reduce other income. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Still, if your standard deduction is greater than your itemized deduction, there is no benefit to claiming the gambling losses. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. This can limit some taxpayers’ other deductions, including medical and miscellaneous itemized deductions. Maintaining a journal or similar. You can deduct your losses, but only if you itemize your deductions on Schedule A (Form 1040). As we all wondered, unless you have enough deductions to actually itemize, you’re stuck paying taxes on all of the winnings and your losses get lumped into the standard deduction. Your gambling losses up to the amount of your winnings ($11K) can be deducted as an itemized deduction on Schedule A. It is the last category listed. Yes, you can deduct your losses if you itemize your deductions instead of taking the standard deduction. Claim your gambling losses up to the amount of winnings, as Other Itemized Deductions. For example , if you had $10,000 in winnings with $7,000 in losses, the loss would offset (reduce) your taxable winnings to $3,000 ($10,000 – $7,000 = $3,000) and you'd only pay tax on $3,000 instead of the full. Another deduction you can take on your federal return to try to nip away at your tax bill is for the income taxes you must pay to your state on your winnings. • Your deductions for gambling losses can’t exceed the gambling income you claimed. For example, if you win $2,500 from gambling but lost $4,500, you can only deduct $2,500 of those losses. So, if you win $1,000 and lose $1,500 in another league, your deduction is limited to just $1,000. I like to tell my students that you’d. To put it another way, you can’t deduct $2,000 from your gambling wins and use the remaining $1,000 to offset other forms of income. If you won $100k and lost $105k, you owe state tax on $100k. Unless your itemized deductions exceed your standard deduction, you won’t be able to deduct those losses. Only qualified organizations are eligible to receive tax deductible contributions. If you don't itemize, you can't deduct the losses. Any excess losses for a year can’t be carried forward. However, you must be able to substantiate your gambling losses with proper documentation, such as. Mega Millions. You can only deduct gambling losses up to the amount of your winnings if you itemize deductions on Schedule A. Gambling income is reported under the Federal Taxes / Wages and Income tab. Yes, you need to report gambling winnings from form 1099-K. What you have to report as income is your actual winning bets of $5000, NOT the $2529, because that numbers would be net winnings (winnings-losses). Charitable Cash Contributions, Even If You Don’t Itemize. So, if you won $5,000 on the blackjack table, you could only deduct $5,000 worth of losing bets, not the $6,000 you actually lost on gambling wagers during the tax year. Finally, gambling losses can, in certain circumstances, trigger the dreaded Alternative Minimum Tax (AMT). Your total gambling deduction is limited to $800, the amount of your winnings. In addition, you won’t be able to write off gambling losses unless you itemize your deductions. If you itemize, you can claim your gambling losses up to the amount of your winnings on Schedule A, Itemized Deductions, under ”Other Miscellaneous Deductions. If I have w2-g's in the amount of $10,000 and my win/loss statement shows a net loss for the year of ($5000). Nov. Claim your gambling losses up to the amount of winnings, as "Other Itemized. If you do not have enough to itemize, however, you cannot deduct the gambling losses. Proving gambling losses on tax starts with a proper itemization of your deductions. You can only deduct gambling losses up to the amount of your winnings if. , while gambling is not deductible. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return ; Please refer to this IRS link for more information about reporting gambling winnings and losses. You should only itemize if all your personal deductions, including gambling losses, exceed your standard deduction for the year. Since you are properly reporting the gambling winnings in full, only subtract. You can deduct gambling losses only if you itemize your deductions. Claim your gambling losses up to the amount of winnings, as "Other Itemized. For example, if you wagered $5,000 and won $2,000, you can only deduct $2,000 in losses. If you gamble for fun, you can itemize deductions and include gambling losses, but only up to the amount that you also won. Say you won $1,400 but lost $3,200. In addition, you won’t be able to write off gambling losses unless you itemize your deductions. This is $52k of taxable income. you would have to report all $10K of gambling winnings in your income, whether to itemize with the offsetting losses or take the standard deduction is up to your specific tax situation. You show the income, with no offset for losses. Claim your gambling losses up to the amount of winnings, such as Other Itemized Deductions. You should also have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings to support. Some states have poorly written laws. S. Assuming that was $51k and you had more losses than that, it would make sense to itemize. In order to obtain a deduction for your lottery losses, you should have the following three pieces information:Feb. citizens or resident aliens for the entire tax year for which they're inquiring. And to be clear, if you bet $3,000 and lost $3,000 you can't deduct that amount. You may take a deduction for the Indiana portion of the federal net operating loss deduction (NOL) you added back on line 2 of Schedule 1 (This will be a net operating loss deduction from an earlier year(s) carried forward to 2017. Casual Gamblers: Casual gamblers, who gamble for leisure and don’t earn a living from it, can deduct gambling losses as a miscellaneous itemized deduction on Schedule A (Form 1040), subject to the limitation that losses can only be deducted up to the amount of winnings reported. Due to the passage of the Tax Cuts and Jobs Act of 2017, most individuals choose to use the standardized deduction rather than itemizing deductions on their tax returns. The Tax Cuts and Jobs Act of 2017 eliminated most miscellaneous itemized deductions allowable that are over 2% of. For tax year 2020, the standard deduction is: Filing Status 1: $2,110. You have to report that. Regarding your federal tax returns, you may deduct gambling losses only if you itemize your deductions on Schedule A (Form. “The U. See TSB-M-18 (6)I, New York State Decouples from Certain Personal Income Tax Internal Revenue Code (IRC). Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. If. As a result, you can't claim a deduction exceeding the amount of gambling income. 2020 - $3,000 loss. You must include the U. If you’re in the red for the year, don’t expect to recoup those losses with tax deductions. For example, if you won $5,000 in a casino but lost $7,000, you can only deduct up to $5,000 of your losses. ( NerdWallet) – As online sports betting rolls out in more states, people are encountering legalized gambling in new ways. One final note: casual gamblers can deduct gambling losses as well, but not the same way as professionals. His gambling losses are $37,900. For your 2022 taxes, which you will file by April 18, 2023, teachers, counselors and principals who aren’t reimbursed for buying supplies can deduct up to $250. 6k (50 - 12. Keep in mind that the deduction for your losses will only be available if you are eligible to itemize your deductions. In that case, your gambling loss deduction is limited to $7,500. If they’re married to another educator and they’re filing jointly, the limit rises to $500. 5: This first Sunday of. Need a coach for filing your income taxes?DoninGA. You never want to rely on your win/loss reports, but you can use them as ancillary data to back up your notes. Allowable gambling losses are deducted in full and are. If you claim the standard deduction, the gambling losses are considered to be part of that amount. “The amount of gambling losses you can deduct can never exceed the winnings you report as income,” a TurboTax explainer details. You can only itemize your losses up to $10,000 on your tax returns. Example: If you won $10,000 but lost $15,000. Keep in mind that you. The full amount of winnings must be reported as income, and the losses can be claimed as an an itemized deduction up to the amount of the winnings. Detailed records could be a diary of receipts, tickets or other records that show accurate amounts of bets. If you itemize instead of taking the Standard Deduction, you can deduct gambling losses up to the amount of your winnings. Say you've got a W2G of $4k which you report on your taxes. My itemized dedcuctions are at $17,300 so it is recommending the standard deduction of $28,500. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. However, if you itemize deductions on your tax return and claim losses (up to the amount of your winnings), then you may be able to deduct your losses on Line 27, Schedule A (Form 1040). Furthermore, you cannot offset your winnings from one day. This limitation applies to the combined results from any and all types of. This means that out-of-pocket expenses for transportation, meals, lodging, etc. In addition, gambling losses are only deductible up to the amount of gambling winnings. S. The deduction however, unlike the gambling deduction, is subject to the 2%. $1,000,000, you don't have to worry about other itemized deductions. Educator Expenses. Gambling losses are not deductible unless you have gambling winnings. ) If you claim the standard deduction, (because you don't have enough expenses to itemize) then you can't reduce your tax by your gambling losses and therefore. The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. Many don’t keep records and player’s club cards often don’t get all the. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. For the most part, an individual may claim those deductions allowable as itemized deductions under the Internal Revenue Code. You must itemize all your deductions to deduct your gambling losses on your tax return. The income from gambling shows up on the first page of your tax return. The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. In tax year 2023. However, you may be able to deduct gambling losses when you itemize your deductions. If you claim the standard deduction, you cannot deduct any gambling losses. In addition, you won't be able to write off gambling losses unless you itemize your deductions . Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income. So, if you win $1,000. As before, a. But the amount of losses you deduct can’t be more than your reported gambling income. So, if you made $10,000 on gambling last year but lost $12,000, you can only deduct $10,000 in losses (nothing more). If you win more than $600, venues send both you and the IRS a tax form, according to TurboTax. The Tax Court's decision. Can I Deduct Gambling Losses If I Don’t Itemize? No. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of Coleman. Your gambling loss deduction cannot be more than the amount of gambling winnings. Most people — in fact, an estimated 90% of filers — take the standard deduction instead. How tax reform could matter. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. Next time please let the professionals handle thisAs per the IRS “You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. (Getty Images) While you don't. Gambling Losses May Be Deducted Up to the Amount of Your Winnings. If you're in the 22% federal tax bracket, you just saved $220. Expiration date: Free play bonuses are often short-term. For example, the IRS. If you’re in the red for the year, don’t expect to recoup those losses with tax deductions. Limitations on loss deductions The amount of gambling losses you can deduct can never exceed the winnings you report as income. If you don 't have access to all. So if you won $2,500 gambling in 2014, the most you can deduct of your losses is $2,500 — no matter how much you lost. Meanwhile,. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of Coleman. If you don’t take advantage of excess itemized deductions,. As an example, let’s say that in a given year you went gambling twice, winning $6,000 in one instance, but losing $8,000 in. Gambling Losses. When you compare slot bonuses, the devil is often in the details. Those betting sites should be issuing you a tax form. The 2017 tax law, known as the Tax Cuts and Jobs Act, also modified the definition of “gambling losses” under Section 165(d). Or at all for that matter. Itemize only. The deduction however, unlike the gambling deduction, is subject to the 2%. You can still claim certain expenses as itemized deductions on Schedule A (Form 1040), Schedule A (1040-NR), or as an adjustment to income on Form 1040 or 1040-SR. gambling winnings. ” You cannot reduce your gambling winnings by your gambling losses and report the difference. You may be asked to back up your claims. Write-offs can also only be for losses wagered in Michigan, not other states. Yes. For taxpayers who do not gamble as their trade or business, losses from gambling transactions can be deducted as an itemized deduction to the extent of any gambling winnings. You may deduct gambling losses only if you itemize your deductions on Form 1040, Schedule A ) and kept a record of your winnings and losses. One tax reform-related change relevant to gambling is this: Because you must itemize gambling losses, it won't help if you don't have sufficient overall deductions to. If you are a person with disabilities, you can take a deduction for expenses that are. With a refinance, you can deduct points over the life of the loan — so, as an example, you could deduct 1/30th of the points every year for a 30-year mortgage, which would total $33 per year for. You may only deduct gambling losses, to the extent of gambling winnings. Itemize only. Filing Status 3 or 4: $2,110 for each spouse. For example, let’s say you have $2,000 in recorded wins at Golden Nugget Casino Michigan but $3,000 in recorded losses. Losses do not offset winnings dollar for dollar. But even if you don't receive forms, the IRS mandates you report gambling wins as income. Itemizing your deductions might benefit you if the amount. Gambling losses are not deductible unless you have gambling winnings. So, if you win $1,000 and lose $1,500 in another league, your deduction is limited to just $1,000. If you use itemized deductions, your gambling losses qualify as a deduction on your federal tax return. Generally, if. “For example, if you have $5,000 in winnings but $8,000 in. Only professional gamblers can deduct non-wager losses and business expenses that create a net gambling loss. 22, 2022, at 12:09 p. So if you won $2,500 gambling in 2014, the most you can deduct of your losses is $2,500 — no matter how much you lost. You would then enter total winning on schedule C and losses as business expenses. You cannot simply reduce your gambling winnings by your gambling losses and report the difference. Gambling losses can only be deducted to the extent of gambling winnings. Once entered, you will be asked about gambling losses. Relatively few Americans itemize deductions on their tax return. Therefore, if you don’t itemize and take the standard deduction, you can’t deduct gambling losses. "You are able to deduct gambling losses up to the amount of your gambling winnings. You can’t deduct gambling losses if you take the standard deduction. For example, if you had $9,000 of gambling losses and had $2,000 of gambling winnings, you can only deduct $2,000 of your losses (the amount of your winnings). You can claim an "above-the-line" deduction on Schedule 1. John reports his $23,500 of wins on Schedule 1 and $23,500 as an itemized deduction on Schedule A. In addition, gambling losses are only deductible up to the amount of gambling winnings. Then there is MS, that charges a 3% nonrefundable tax to all nonresidents. When you itemize, you can deduct your losses up to your winnings. While you can write off some gambling losses if you itemize, that deduction can’t exceed the amount of your winnings. Those include total income, sources of that income, filing status, number of dependents, what deductions and/or credits one qualifies for, and a host of other variables. Here is a screwed up scenario. An individual may claim itemized deductions on an Arizona return even if taking a standard deduction on a federal return. Without gambling you would have taxable income of $37. You are permitted to deduct gambling losses if you itemize your deductions. The deduction is equal to the wagering losses claimed by the taxpayer as an itemized deduction on the federal income tax return for the same tax year. “So, if you bet $2,000 and didn’t win anything, you don’t get to deduct the $2,000 you lost. S. Claim your gambling losses up to the amount of. Form 1040 Schedule A. How You can Have a Loss and Still Owe Taxes. Winnings from gambling can be taxable and should be reported on your tax return. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. How do I enter a W-2G? You must file a W-2G return in the. This final category of itemized deductions includes items such as gambling losses to the extent of gambling winnings, losses from partnerships or subchapter S corporations, estate taxes on income. TurboTax keeps. Keep in mind that you can only offset gambling losses against the tax you pay on gambling wins. 4 standard deduction) If you netted winnings of $2,000 you’d have $39. income on the 1040 form. You can deduct gambling losses only if you itemize your deductions. Level 15. 5% of your adjusted gross income (AGI). So you can use losses to “wipe out” gambling income but you can’t show a gambling tax. The total you can deduct, however, is limited to the amount of the gambling income you report on your return. The standard deduction amount depends on the taxpayer's filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. And in order to deduct your losses, you have to be able to itemize your deductions. make sure you take note of all gambling losses for the year including other casinos. However, gambling losses can only be claimed if you itemize your deductions on Schedule A of your Form 1040. If you plan to deduct your losses, you must keep careful records and itemize your taxes in order to claim the losses. Note that if you don't itemize, you can't deduct your gambling losses: If you had $5000 in winning sessions and $6000 in losing sessions, you have to report the $5000 as income, and you can't subtract out your losses, because you're not itemizing. You can only deduct gambling losses if you itemize your annual tax return. Say in scenario B that OP won 50k during the year and. You may deduct $10,000. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and. Additionally, you must meet a. If you break even over the course of a year, you won’t have to pay taxes on winnings because your losses offset taxable winnings. My W-2 G gambling win is offset by losses. Also note the $11K will be included in your AGI. Practically, IRS auditors may allow some reconstruction of these expenses if. Changes Under the Tax Cuts and Jobs Act There is a threshold requirement for the gambling losses deduction, which means that you can only deduct losses that exceed 2% of your adjusted gross income (AGI). Online gambling and. Topic No. Losses: You can deduct gambling losses that don't exceed your winnings as itemized deductions using Schedule A (Form 1040), but you need to provide records. However, if you itemize deductions on your tax return and claim losses (up to the amount of your winnings), then you may be able to deduct your losses on Line 27, Schedule A (Form 1040). They do not offset. In addition to the limitation on how much you can deduct, you can only deduct your sports betting losses if you itemize your deductions. Additionally, winnings and losses must be reported separately, i. Second, you can only claim those gambling losses. Topic No. Luckily, if you itemize deductions on Schedule A, you can take a deduction for your gambling losses, but it can never be more than your gambling winnings. 12. Checking in to make sure you received my last response?No, you cannot deduct gambling losses when filing your NC state income tax return. Gambling winnings ($500) cannot be reduced by gambling losses ($400), and only the difference ($100) is reported as income. The expert concluded with a 99% level of certainty that Coleman had overall net losses during 2014 of at least $151,690. Starting in 2021 if you elected to itemize deductions on your federal return (you did not take the standard deduction) and deducted wagering losses from casual gambling, you may be eligible to deduct wagering losses. So you ask, why not declare myself a “professional” gambler. So if you lose $500 but win $50, you can only deduct $50 in losses on your federal income tax returns. Related Tax Questions. 1040 Schedule A: Itemized Deductions. Amateur gamblers who don’t itemize can’t claim gambling loss deductions. $8,000 of the remaining undeclared loss can be netted against this gain for the year, bringing the total amount of declared losses to. But if you don’t itemize, you cannot deduct those losses. They’re deductible, but only as itemized deductions. You can’t, unfortunately, deduct losses that total more than your winnings. You would then enter total winning on schedule C and losses as business expenses. You. The key is you can’t deduct losses that amount to. If you don't itemize then you can't deduct anything. To deduct gambling losses, you must provide records that show the amounts of both your winnings and losses, like: Receipts. You can't offset your losses dollar for dollar against your gains. You cannot deduct gambling losses unless you itemize (or are a professional gambler). Also, keep detailed records of the gambling losses you deduct for a period of at least five years. Itemized Deductions: Gambling losses are considered itemized deductions rather than above-the-line deductions. If you don't have enough deductions to itemize, your screwed. For example, if the winnings are $5000 and the losses are $7000, a taxpayer can only deduct $5000. So my guess here is that your gambling loss deduction of $20k plus whatever other deductions you'd get by itemizing are only marginally higher than the standard deduction (enough higher that your tax bill drops by $200 or so). You can deduct gambling losses if you itemize your deductions on your tax return, but you cannot deduct more than the gambling income you received. some miscellaneous deductions can still be itemized. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. Gambling losses are not a one-for-one reduction. Finally, gambling losses can, in certain circumstances, trigger the dreaded Alternative Minimum Tax (AMT). This can limit some taxpayers’ other deductions, including medical and miscellaneous itemized deductions. To report gambling losses, you must itemize your income tax deductions on Schedule A. You don’t have to fill out a W-2G form in the casino for specific sums. TurboTax prompts you to enter your gambling losses after you enter your gambling winnings. You would typically itemize deductions if your gambling losses plus all other itemized. How much can I deduct in gambling losses? You can report as much as you lost in 2023, but you cannot deduct more than you won. Standard vs. Gambling Losses. You must report your gambling winnings even if Wisconsin income taxes are not withheld. You can't use it to offset your gambling gains in other years. You can enter your winnings, and then keep clicking through the interview to enter gambling losses. Yes, you are correct that you can zero out the income with the cost of the used items, but the reduction is only allowed to the extent of the earnings. 63%. See more• The amount of gambling losses you can deduct can never exceed the winnings you report as income. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. In addition, gambling losses are only deductible up to the amount of gambling winnings. My question though — on only about 25% of these W2G events (ie, hitting over $1200 on a slot machine) — I had them deduct the standard 24% federal taxes. The key is you can’t deduct losses that amount to more than what you’ve won. However, these deductions may not exceed. While the standard deduction is quick and easy, itemizing your taxes could save you more money. If you don't have enough other deductions to itemize, then it is to your. Also note the $11K will be included in your AGI. The IRS requires the payer to give you a W-2G if you win: $1,200 or more on bingo or slots. There is one golden rule to keep in mind when deducting gambling losses on your tax return.