Can You Claim Gambling Losses on Your Taxes?
Jeffrey Levine of Buckingham Wealth Partners, aka “The Buckinghammer” explains whether taxpayers can claim gambling losses on their taxes.
Key Takeaways
- Casual gambling losses are not deductible unless you're classified as a professional gambler—simply not having another job while gambling does not qualify you
- You can only deduct gambling losses by offsetting them against gambling winnings from the same tax year, not as a standalone loss
- If you won any gambling winnings earlier in 2022 or expect to later, you can use current losses to reduce that income, but it's better to win and pay taxes than lose
- More states are legalizing sports betting through platforms like FanDuel and DraftKings, which means more people will need to track gambling income and losses for tax purposes
- Keep records of all gambling activity—both wins and losses—since you must report winnings as income and may be able to offset them with documented losses
Can You Claim Gambling Losses on Your Taxes? In this episode of Ask The Hammer, Jeffrey Levine of Buckingham Wealth Partners answers the question: Can You Claim Gambling Losses on Your Taxes? “The Buckinghammer” explains whether taxpayers can claim gambling losses on their taxes.
According to 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. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Here is a link to the IRS website with more details: IRS. Watch this episode of Ask The Hammer to learn if you can claim gambling losses on your taxes and be sure to watch more Ask The Hammer episodes at this link: https://www.finstream.tv/videos/ask-the-hammer/
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