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In trip a, you won $6,000 in poker. In trip b, you lost $8,000. You must list each individually, with the winnings noted on your return as taxable income and the loss as an itemized deduction in schedule a. In this instance, you won’t owe tax on your winnings because your total loss is greater than your total win by $2,000. On their joint form 1040, the visos did not report any gambling winnings or losses for the 2013 tax year. They claimed a standard deduction of $12,200. The irs assessed a tax deficiency after including the $5,060 of gambling winnings in the couple's 2013 income. Yes, scratch off tickets can count as gambling losses – but there is a catch. First, you cannot deduct them without claiming any winnings. For tax purposes, you can only deduct losses up to the amount of your winnings. Secondly, they are part of your itemized deductions. Instead, they choose the standard deduction, which is a sizable chunk of tax relief totaling $12,950 for single filers in 2022. If you itemize instead of taking the standard deduction, you can deduct gambling losses up to the amount of your winnings. 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 $10,000. One itemized deduction that survived tax reform was the ability to deduct your gambling losses. You can tally your losses on the "other itemized deductions" section of form 1040 schedule a. Note, however, that your bad betting luck only goes so far. You can only use your gambling losses to offset, perhaps zero out, your winnings
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