If you itemize deductions, you could take a deduction for your gambling losses of $4245 ($2471 +. Gambling losses can be deducted up to the amount of gambling winnings. But if you have paperwork to support it, go for it. Taxpayers may still deduct eligible state and local taxes paid, independent of the federal dollar limitation. Your gambling losses up to the amount of your winnings ($11K) can be deducted as an itemized deduction on Schedule A. One of them is you cannot claim losses greater than winnings. You must include the U. In other words, if you are in the ~90% of americans who claim the standard deduction, you are screwed if you gamble, because you get taxed on gross winnings,. S. If you suffered gambling losses in 2022, you can deduct up to the amount of gambling income that you reported. With the new bill, taxpayers wouldn’t be allowed to deduct losses to exceed taxes owed. , you cannot reduce the gambling winnings by the gambling losses and report the difference. The expert concluded with a 99% level of certainty that Coleman had overall net losses during 2014 of at least $151,690. Gambling losses are only deductible if you itemize, and then only to the extent of your winnings. You can't deduct it directly from the winnings. The additional losses are not deductible. Sports betting losses might also be used as deductions if you itemize your deductions and keep a detailed record of wins and losses. The total you can deduct, however, is limited to the amount of the gambling income you report on your return. The best way to avoid being audited here is to make sure you claim both your wins AND your losses. Instead, you must report your gambling income and gambling expenses separately. For example, let’s say you have $2,000 in recorded wins at Golden Nugget Casino Michigan but $3,000 in recorded losses. Most people — in fact, an estimated 90% of filers — take the standard deduction instead. Claim your gambling losses up to the amount of winnings, as "Other Itemized Deductions. Contributing to a 529 college savings account can offer tax advantages, including tax-deferred growth and tax-free withdrawals for qualified education expenses. As you pointed out, if there was no "session" gain, there there is $0 of taxable gambling income to report. If you itemize your deductions, you can offset your winnings with your game losses. In general, individuals not in a trade or business or an activity for profit, may take a standard deduction or itemize their deductions. Itemize only. , while gambling is not deductible. One final note: casual gamblers can deduct gambling losses as well, but not the same way as professionals. If you plan to deduct your losses, you must keep careful records and itemize your taxes in order to claim the losses. You may be asked to back up your claims. Because a casual gambler’s wagering losses are itemized, they are not included in AGI and do not carry over to the Michigan return. When it comes to deducting gambling losses, they are limited to the amount that is won while gambling. Assuming that was $51k and you had more losses than that, it would make sense to itemize. 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. The key is you can’t deduct losses that amount to more than what you’ve won. The deduction can only be claimed if you choose to file. make sure you take note of all gambling losses for the year including other casinos. 1. Yep - gambling losses are part of the itemized deduction portion (schedule A) of the tax return, only to the extent of gambling winnings. Losses can be claimed up to the amount of your winnings. If somebody with $300k losses has been reporting. 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. What do you need to deduct. You. 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). When you enter your gambling winnings in TurboTax, the interview will also ask you questions regarding gambling losses. ” Refer to. For example, if you had $10,000 in long-term capital losses, $4,000. 504 to figure the portion of joint expenses that you can claim as itemiz-ed deductions. You can claim gambling losses as a miscellaneous itemized deduction, but only up to the amount of your gambling winnings. Do online casinos report your winnings to. You report gambling winnings as Other Income on the 1040. Whether it's $5 or $5,000, from the. Individuals who don’t use excess itemized deductions are more likely to see a tax cut. You never want to rely on your win/loss reports, but you can use them as ancillary data to back up your notes. Gambling losses can be deducted on Schedule A. Your gambling loss deduction cannot be more than the amount of gambling winnings. 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. Tax Questions. You are allowed to list your annual gambling losses as an. If. 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 these deductions regardless of whether or not you claim the standard deduction or opt to itemize your deductions. You can only deduct your gambling losses once, not twice. You may deduct $10,000. For example, if you win $2,500 from gambling but lost $4,500, you can only deduct $2,500 of those losses. Make sure you include any brokerage fees in calculating your losses. It makes zero incentive to use any Sportsbook apps. 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. So, if you made $10,000 on gambling last year but lost $12,000, you can only deduct $10,000 in losses (nothing more). Form 1040 Schedule 1 and U. For tax year 2020, the standard deduction is: Filing Status 1: $2,110. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. The only golden rule is that the gambling losses to be deducted cannot exceed the winnings reflected as gambling income. The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. 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. For example, your medical and dental expenses are only deductible to the extent they exceed 7. . As long as you meet various qualifications — which most borrowers do — the IRS allows you to deduct the lesser of $2,500 or the amount you actually paid in interest on. All deductions for expenses incurred in carrying out wagering transactions, and not just gambling losses, are limited to the extent of gambling. Since you will have already included your gambling winnings at that point, you don’t have to do anything else. Gambling losses can only be deducted up to the amount of the gambling winnings. I like to tell my students that you’d. Gambling Losses. Winnings are reportable always. The standard deduction for 2023 is: $13,850 for single filers and married taxpayers filing separately. For example, if you wagered $5,000 and won $2,000, you can only deduct $2,000 in losses. However, if you received a Form. The summation would be winnings of $2529; however, the actual winning bets would be $5000. For example, if the winnings are $5000 and the losses are $7000, a taxpayer can only deduct $5000. You can’t deduct your losses without reporting your wins. 4. Michigan gaming but also would allow them to deduct losses attributable to gaming that did not occur in Michigan. In short: The only reason to actually deduct gambling losses would be if they — along with other deductions — are more than the standard deduction. If, or unfortunately when, you ever are in a major natural disaster, the ol' blog's special Storm Warnings pages can help in preparing for, recovering from (including claiming uninsured disaster losses as an itemized tax deduction), and helping those who sustain damages from the many ways that that weather goes wild. When filling out the form, claim your gambling losses up to the amount of winnings as "Other Itemized Deductions. You would typically itemize deductions if your gambling losses plus all other itemized. Checking in to make sure you received my last response?No, you cannot deduct gambling losses when filing your NC state income tax return. nakor28 • 3 yr. There are numerous states (CT, IL, NC, for example) that do not allow any sort of gambling loss as a deduction. For tax purposes, you can only deduct losses up to the amount of your winnings. tax code is very broad in how it defines what is taxable. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. You can deduct gambling losses only up to the extent of gambling winnings, and the losses can't exceed the winnings. For example, if you had $10,000 as gambling winnings and $15,000 as losses, you can only deduct your losses up to $10,000. If you are a Wisconsin resident and paid a net income tax to another state or the District of Columbia on gambling winnings, you may be entitled to claim a credit for net income tax paid to the other state on your Wisconsin. Since you lost $30k, you can itemize your deductions, file Schedule A, and prove to the IRS with a ledger and receipts that you lost $30k. You cannot use gambling losses to create or increase a tax loss. If you itemize, you can deduct a part of your medical and dental expenses, and amounts you paid for certain taxes, interest, contributions, and other expenses. “For example, if you have $5,000 in winnings but $8,000 in. you don’t have to count your winning wagers toward your. While the standard deduction is quick and easy, itemizing your taxes could save you more money. 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. The gambling losses, however, are reported on your Schedule A when you itemize your deductions as miscellaneous deductions. Gambling. S. Gambling losses can be deducted from. Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. Thus, a casual gambler may only use this new deduction if the taxpayer elected to itemize deductions on the federal income tax return rather than take the standard deduction. It’s also important to note that the only way you can deduct gambling losses is if you are already itemizing your deductions on a Schedule A. You. Itemized Deductions: Gambling losses are considered itemized deductions rather than above-the-line deductions. However, if you do itemize, you can deduct the $1,300 as a gambling loss which will offset $1,300 of your gambling winnings. S. so your balance is $100 after those bets. Here’s a breakdown of each: 1. Some of the more common ones are:. This can limit some taxpayers’ other deductions, including medical and miscellaneous itemized deductions. You can "back it out" as a negative number on the "other income" line (use the amount of the winnings as a negative number, don't create a loss on the tax return). Specifically, your income tax return should reflect your total year’s gambling winnings, from the big blackjack score to the smaller fantasy football. 2020 - $3,000 loss. In addition, gambling losses are only deductible up to the amount of gambling winnings. Second, if you itemize deductions onyour tax return, you can deduct your gambling losses against your winnings. If you are a person with disabilities, you can take a deduction for expenses that are. 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. But whether you’re wagering on. You can deduct gambling losses from your income, but there are a few catches. Need a coach for filing your income taxes?DoninGA. No. "But, you must itemize your deductions. You cannot deduct gambling losses unless you itemize (or are a professional gambler). Deductible Losses. If you have no winnings to claim, you can’t deduct your losses. See TSB-M-18 (6)I, New York State Decouples from Certain Personal Income Tax Internal Revenue Code (IRC). If you don’t report, you may get hit with higher withholding levels on the Federal level. You are allowed to deduct gambling losses, but only to offset income from gambling wins. So, if you win $1,000 and lose $1,500 in another league, your deduction is limited to just $1,000. Regarding your federal tax returns, you may deduct gambling losses only if you itemize your deductions on Schedule A (Form. In addition, you won’t be able to write off gambling losses unless you itemize your deductions. Generally, you can only deduct charitable contributions if you itemize deductions on Schedule A (Form 1040), Itemized Deductions. To report gambling losses, you must itemize your income tax deductions on Schedule A. You show the income, with no offset for losses. Residents: report the amount of wagering losses you. You are able to deduct gambling losses up to the amount of your gambling winnings. ago. However, gambling losses can only be claimed if you itemize your deductions on Schedule A of your Form 1040. Basically I got lucky and won two 777. If they’re married to another educator and they’re filing jointly, the limit rises to $500. But you can deduct disaster losses that occur within a federally-designated disaster area. Claim your gambling losses up to the amount of winnings, such as Other Itemized Deductions. 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. Your gambling winnings or losses is generally reported on Form W-2G or via Form 5754. 5% of your adjusted gross income (AGI). ) 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. And to be clear, if you bet $3,000 and lost $3,000 you can't deduct that amount. Many don’t keep records and player’s club cards often don’t get all the. 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. ” You cannot reduce your gambling winnings by your gambling losses and report the difference. income on the 1040 form. Some states have poorly written laws. In addition, you won’t be able to write off gambling losses unless you itemize your deductions. 6k taxable income. While the IRS does not have a gambling losses tax, it does allow for you to deduct gambling losses on your tax return in the form of a miscellaneous deduction. Are gambling losses deductible? Gambling losses up to the amount of gambling winnings may be deductible if you itemize. Gambling is a terrible financial activity for the large majority of americans that take the "standard deduction" because if you don't itemize, you can't deduct gambling losses/wagers. 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. Losses do not offset winnings dollar for dollar. 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. Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. And in order to deduct your losses, you have to be able to itemize your deductions. 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. 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). You can’t deduct more than you won, even if you did actually lose more than you won during the course of the year. Casual gamblers also must keep records of their gambling. 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). Additionally, winnings and losses must be reported separately, i. If you don’t keep careful records of your gamling losses, you could face an IRS gamling losses audit. These can be found on the front of your federal Form 1040 in the Adjusted Gross Income section. 7. blakeh95 • 20 days ago. It may not seem very easy, but Bounds Accounting will lead you through the process from start to finish. " “Gambling losses include the actual cost of wagers plus expenses incurred in connection with the conduct of the gambling. For 2021, the standard deduction numbers to beat are: Single taxpayers: $12,550. This limitation applies to the combined results from any and all types of. Gambling winnings are unique because you can also deduct your gambling losses and certain other expenses, but only in specific circumstances (see our article about this). You can claim the lesser of your losses or $3000. ONLY about 25% of the population itemizes! Chances are if granny hits a $2,000 jackpot. However, your gambling loss deduction shouldn’t exceed your winnings. The 2017 tax law, known as the Tax Cuts and Jobs Act, also modified the definition of “gambling losses” under Section 165(d). Third, there’s no need to itemize your deductions. For example, if you have $5,000 in winnings but $8,000. DoNotPay provides you with the fastest, easiest, and most reliable way to file your gambling losses taxes. Need a coach for filing your income taxes?DoninGA. Your deduction for charitable contributions generally can’t be more than 60% of your adjusted gross income, but in some cases 20%, 30%, or 50% limits may apply. So if you had winnings of $2,000 and losses of $5,000, your deduction is. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. Technically speaking, these are not deductions at all, but adjustments to income, even though they are also called above-the-line deductions. Claim your gambling losses on Form 1040, Schedule A, as a. However, the amount of losses you deduct may not be more than the amount of gambling. com. Anybody can deduct their losses only up to the amount of their total gambling winnings. $5,000 or more from a poker tournament,. Yes, you need to report gambling winnings from form 1099-K. Claim your gambling losses up to the amount of winnings, as "Other Itemized. Gambling losses are deducted from the winnings as an itemized deduction. Gambling losses can be the hardest to prove IF you’re audited. If you don’t itemize you are screwed! You cannot deduct losses on a standard deduction. You are permitted to deduct gambling losses if you itemize your deductions. Related Tax Questions. $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 in 2020, you can deduct donations of up to $300 even if you don't itemize. Losses on line 16 cannot be greater than wins on line 8. Gambling losses are an itemized deduction. However, you can only deduct your loss up to the amount you report as gambling winnings. You can claim your gambling losses as “Other Itemized Deductions” on your income tax. Yes, you can deduct your losses if you itemize your deductions instead of taking the standard deduction. The bad part is say you win 10k and have. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Gambling losses are not deductible unless you have gambling winnings. You can't deduct more in gambling losses than you have in gambling winnings for the year. You can either claim the standard deduction or itemized deductions on your return — but not both. Someone stole your stuff. It is not ‘common’ for a person to go from 0 gambling losses to $130k. Claim your gambling losses up to the amount of winnings, as Other Itemized Deductions. Mega Millions. • The amount of gambling losses you can deduct can never exceed the winnings you report as income. 00. In 2023, that range is up to $13,850 to $27,700. Finally, if you. 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. 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. If you itemize deductions, you can offset your winnings by deducting gambling losses. Furthermore, you cannot offset your winnings from one day. "Let's say you bet $1,000 and you get $3,000 back," says Romeo Razi, a Las Vegas-based. The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. 1 Solution. Yes - gambling losses are deducted as a part of itemised deduction - on schedule A. Miscellaneous itemized deductions are those deductions that would have been subject to the 2%-of-adjusted-gross-income (AGI) limitation. It is possible to deduct Kansas gambling losses on your tax return. 20 Most. If your California gambling winnings were from anything besides the following sources, the winnings would be taxable in California and you would need to file a nonresident California return. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. In another scenario, let’s say you again won $10,000 playing Blackjack, but you wagered and lost $12,000. Also, the gambling loss deduction is limited to the amount of gambling winnings that you report as taxable income. If you claim the standard deduction, you cannot deduct any gambling losses. You may itemize your deductions for Kentucky even if you do not itemize for federal purposes. NOTE:. 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. Even though the gambling winnings were reported on form 1099-Misc you can only deduct gambling losses as an itemized deduction. You must include the U. I keep reading about itemize deductions are required however when I change to itemized my refund is even less. How You can Have a Loss and Still Owe Taxes. Example: If you won $10,000 but lost $15,000. But the IRS wants to see that W-2G, so. 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. If you were issued a W2G form for your FanDuel gambling winnings, it is mandatory to report them on your tax return. Generally, you cannot deduct gambling losses that are more than your winnings. Second, you can only claim those gambling losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. The policy allows you to deduct your gambling losses up to the amount you won during the year. 02-01-2021 02:39 PM. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. That $300 applies whether you're a single filer or you file a joint return. If you don't have enough deductions to itemize, your screwed. Remember I said you had to itemize to take your gambling losses? What if your standard deduction is $27,500 but your actual itemized deductions come to only $10,000? Normally, you would be happy to take the standard deduction. Because there is another way out. Fortunately, you can deduct losses from your gambling only if you itemize your deductions. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. Schedule D is what you will need to fill out. Losses are reported on Schedule A line 16. S. It is not ‘common’ for a person to go from 0 gambling losses to $130k. You cannot deduct gambling losses unless you itemize (or are a professional gambler). When you win $500 for one bet, you must report the entire $500 as taxable income. If you don 't have access to all. You must itemize all your deductions to deduct your gambling losses on your tax return. Limitations on loss deductions The amount of gambling losses you can deduct can never exceed the winnings you report as income. The only way you can deduct losses directly against winnings is if this was your trade and business. The fact that West Virginians can now deduct. Gambling winnings can also be subject to state-level taxes, with treatment varying across states. You could only deduct $1,400 of the losses. For example, let’s say you have $2,000 in recorded wins at Golden Nugget Casino Michigan but $3,000 in recorded losses. Gambling winnings ($500) cannot be reduced by gambling losses ($400), and only the difference ($100) is reported as income. Other itemized deductions, such as gambling losses or impairment-related work expenses of a disabled person; As a general rule, you can deduct any expenses that are considered necessary and helpful in the production of your income. Claim your gambling losses up to the amount of. 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. 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). Amount of your gambling winnings and losses. Example: John wins $23,500 during the year playing slots and other casino games. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. You’ll need a record. The deduction for gambling losses is found on Schedule A. If you take the standard deduction, you cannot claim gambling losses. To make the matter worse. You may or may not receive Form W-2G Certain Gambling Winnings, but you can report all gambling winnings in the same place in the TaxAct program. So you can use losses to “wipe out” gambling income but you can’t show a gambling tax loss. For 2022 tax returns (those filed in 2023. Without seeing your documentation it is hard to be sure, but based off your summary, it seems ok. They do not offset. Gambling losses cannot be greater than gambling wins for the tax year. You can't deduct it directly from the winnings. If they do you want to have all paperwork ready to go that adds up to show the loss. Accurate record-keeping and supporting documents are essential to prove your losses, and you can only deduct losses up to the amount of. Under Federal law, gambling losses are deductible for Federal tax purposes for those who are able to itemize their deductions. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. 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. The Tax Cuts and Jobs Act of 2017 eliminated most miscellaneous itemized deductions allowable that are over 2% of. If you claim the standard deduction, y ou don’t get the opportunity to reduce taxes for winnings owed by deducting gambling losses. But if you have the proper documentation for your deduction, loss or credit, don't be afraid to claim it. Itemizing only makes sense if you have a total of deductions greater than the standard deduction for your filing status ($12,950 for single, double for married. • Your deductions for gambling losses can’t exceed the gambling income you claimed. 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. For example, if your AGI is $50,000, you can only deduct losses that exceed $1,000 (2% of $50,000). Gambling losses: Gambling losses are deductible to the extent of gambling winnings. S. Say you've got a W2G of $4k which you report on your taxes. Anyways, for the tax year 2021 (aka the taxes you file in April, 2022), the standard deductions are as follows, based on your filing status: $12,550 for single filers and married filing separately, $26,900 for joint filers, and. You’ll need a record of your winnings and losses to do this. They can not be deducted any where else on the return and can not be netted against (subtracted from) the W2G winnings before they are entered as misc. You are leaving ftb. Know what you can and can't claim to maximize your potential tax savings. They will tax you, at the state level, on gross winnings. $1,000,000, you don't have to worry about other itemized deductions. For tax years prior to 2018 and after 2025, you can only deduct casualty losses not reimbursed or reimbursable by insurance or. The standard deduction in tax year 2022 ranges from $12,950 to $25,900 depending on your filing status. Finally, gambling losses can, in certain circumstances, trigger the dreaded Alternative Minimum Tax (AMT). they can provide a win/loss report. The good news: Theft losses that your insurance company doesn’t. Currently, there are only 15 states in the US that don't state gambling taxes. If you itemize deductions, you can deduct your gambling losses for the year on line 27, Schedule A (Form 1040). But there are still some tax deductions - known as above-the-line deductions - you can take without itemizing. You have to report that. For tax purposes, gambling losses are tax deductible if you itemize your deductions and can provide detailed records of your winnings and losses. Standard vs. So if you make $60,000, and you choose the standard deduction amount of $12,550, your. This means that to claim them, you must choose to itemize your. This can be done using Schedule A, and please bear in mind that your losses in any year cannot exceed your winnings. 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). You are allowed to list your annual gambling losses as an itemized deduction on Schedule A of your tax return. Level 15. The gaming establishment is required to issue you a W-2G form whenever you win above certain amounts. 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. For example, if you have $5,000 in winnings but $8,000 in losses, your deduction is limited to. If you itemize deductions , you may claim gambling losses up to your gambling winnings. SHE OWES AT LEAST 25%.