Gambling Losses

Gambling losses can be deducted on your tax return when you itemize tax deductions and it’s decided by the extent of your gambling winnings. Hence it is important to have a record of gambling wins and losses, for tax return purposes. To file for tax return you have to provide documents like tickets, receipts or other statements. Gambling losses can be claimed as a miscellaneous tax deduction on Schedule A of Form 1040. A net gambling loss on your tax return cannot be deducted or carried forward even if you are a professional gambler.

If s diary is kept as a record by the gambler, it should have accurate entries and all the details that the IRS requires. The diary should contain the specific type of gambling activity, the name of the gambling company or firm. It should have the address or location of gambling establishment and also the people who were along with you when you were gambling there. Obviously, the amount of gambling winnings and losses should also be entered. These diary and other documents should be supported by other things like restaurant bills, plane tickets, gasoline credit cards, or affidavits or testimony from responsible gambling officials, if needed.