Report all your. If you are able to itemize your deductions, gambling losses can be. Find out more about reporting gambling losses on your tax return. •The 2nd Circuit upholds much of the BTA’s decision but based on the testimony decided there were. If you earned $60k from your job, and $31k from your gambling with itemized deductions of nothing other than you're gambling losses, then your taxable income is $61,000. Individuals who gambled as a trade or business, considered. Gambling winnings, winnings from sports betting, fantasy leagues, those are all taxable. Now that more people are working from home, the IRS may look for taxpayers trying to bend the rules. taxpayers may engage in friendly wagers on their favorite teams, but when the game of chance turns into illegal criminal activity, IRS Criminal Investigation (CI) is ready to tackle. C. Gambling losses: If you are going to deduct gambling losses, you must have receipts, tickets, statements and documentation such as a diary or similar record of your losses. Has Anyone Been Audited Gambling Losses? Most people don’t keep records of how much they lose at gambling establishments, which can lead to IRS audits. Specifically, your income tax return should reflect your total year’s gambling winnings, from the big blackjack score to the smaller fantasy football. I’m trying to plan for best way to file my 2022 taxes and am caught up on correct way to report gambling winnings and deduct losses hypothetical round number. Gambling winnings, winnings from sports betting, fantasy leagues, those are all taxable. On the other hand, a professional gambler can deduct other expenses associated with their casino play (it's a JOB after all - ha!). And be careful with the gambling income, their deductions. It is important to keep an accurate diary or similar record of your gambling winnings and losses (in case of an audit). How Much Can You Win In Vegas. If you win $1,200 from slots or bingo, $1,500 from Keno, or $5,000 from poker tournaments, you should also be issued a W-2G. Gambling losses. On my federal income tax return, I report $50,000 of gambling winnings on line 21 as “other income,” and I report $50,000 of gambling losses as an itemized deduction on Schedule A. Amount of your gambling winnings and losses. Gambling losses are often a trigger for IRS audits because most people don't keep careful records of how much they lost while at the casino, racetrack, or another gambling establishment. Also. First of all, the IRS has the proper legal authority to disallow the usage of most casino win/loss statements. S. While failing to check the box when you should do so may also trigger an audit. And then depending on what other type of gambling you're doing, like, if it's slot machines, the threshold is at $1,200 or more. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. 18, 2021) (reviewing Gregory v. The Internal Revenue Service (IRS) also. Date and type of specific wager or wagering activity; 2. Employees who work from home (as opposed to self-employed people) currently can’t claim a home office deduction. Income tax is withheld at a flat 24% rate from gambling winnings more than $5,000 from: Any sweepstakes, wagering pool, including payments made to winners of poker tournaments, or lottery. Carl Gregory TCM 2021-115 is a boat chartering case - a classic 183 activity. There are many other potential audit triggers. On the screen that follows, enter your Gambling Losses . Gambling income includes, but is not limited to, winnings from lotteries. If your gambling activities rise to the level of professional. The sessions approach to recordkeeping . Deducting Gambling Losses. However, your annual losses are deductible only up to the amount of your winnings. Cash is not the only kind of winnings you need to report. However, the $5,000 excess loss can’t be deducted in 2015 or carried forward. Schreiber, J. If you had a big win, are concerned about your tax liability, or have any questions related to gambling winnings or losses, contact the. . The most significant IRS audit triggers point. Statements. All winnings from gambling activities must be included when computing the deductible gambling losses, which is generally always an issue in a gambling loss audit. Gambling winnings historically have been reportable on page 1 of an individual taxpayer’s Form 1040, and this has not changed. But, the TCJA amended Sec. Sports Betting Lawsplaying poker. A tax-exempt organization conducting gaming activities may be required to withhold income tax and report on Form W-2G. Avoid these 11 audit triggers when preparing your return to prevent unwanted attention from good ol’ Uncle Sam. Gambling losses. 10 Tax Audit Red Flags to Consider. A taxpayer may deduct losses from wagering transactions to the extent of gains from those transactions under Sec. Getting Ready for a Gambling Audit Kristy Maitre –Tax Specialist Center for Agricultural Law and Taxation July 7, 2016 At A Glance • Card Rooms ‐$1. Are gambling losses deductible. Original Print Headline: Gambling with tax problems. 4. Withholding. On audit by the IRS, the IRS proposed to disallow the casualty-loss deduction and. Do Gambling Losses Trigger An Audit? Most people don’t keep records of how much they lose at gambling establishments, which can lead to IRS audits. Generally, your net profit for tax purposes is the amount of your winnings minus any entry fee. July 20, 2022 1:51 PM. If you gamble for fun, you can itemize deductions and include gambling losses, but only up to the amount that you also won. However, gambling losses are typically limited to gambling income. Yet, with other titles like Divine Fortune and Treasure Room, the action is plentiful. Let’s take a look at some data to back this up. The IRS reinforced this position in a recent private letter ruling. As with any gambling income, such winnings can be noted on your 1040 form under "other income. 8. Taxpayers can claim a limited deduction for gambling losses, but the IRS keeps close tabs on these write-offs. These often turn up under the medical expenses tax deduction, charitable contribution deduction, or even gambling loss deductions. But, you may only claim these items up to the amount of the winnings shown on your tax return. Beware of claiming a business loss for consecutive years. If you open an app and it shows a ledger of $30,000 winnings, $28,000 bets wagered, Win/Loss $2000, the IRS needs the $30,000 number. Step 1: Winnings information (Complete the following information. In the past. Like all other taxable income, the IRS requires you to report prizes and winnings on your tax return, too. The win/loss statement provided by the gambling entity serves as a guideline for taxpayers, but the individuals who gamble are solely responsible for keeping a record of their gambling wins and losses for tax purposes, including storing receipts, tickets, and statements. Throughout the year, A traveled to various casinos and other venues where gambling is legal to participate in poker tournaments. Gambling income is almost always taxable income which is reported on your tax return as Other Income on Schedule 1 - eFileIT. m. The Tax Court held that Coleman had substantiated that his gambling losses for 2014 were in excess of his gambling winnings, so he was entitled to the $350,241 gambling loss deduction. $5,000 or more from a poker tournament,. If your winnings surpassed a certain threshold last year, the IRS undoubtedly has evidence of your activity from multiple sources. Can you write off gambling winnings, irs gambling losses audit. Your gambling losses, no greater than winnings, get reported on Schedule A, Itemized Deductions. A win of $500 or even a scratch off win of $1, neither. Coleman spent playing slots would have “overall net gambling losses of at least $151,690 during 2014. The IRS has clear-cut rules on gambling income that predate the recent explosion of the sports betting industry. "Let's say you bet $1,000 and you get $3,000 back," says Romeo Razi, a Las Vegas-based. Jun. My guess, and it is only a guess, is that a detailed log without machine numbers would be. For the OP, the audit was questioning the losses, most of which were from table games, which the IRS and most tax authorities understand are much less accurately tracked by the casinos. On the other hand, calculating the losses should come from the same information used to prove the losses. Here are the thresholds for certain gambling activities: $600 or more or at least 300 times the amount of the sports wager. Casinos send a W-2G form to the IRS for winnings above specific thresholds ($600 or more for most games). Getting Ready for a Gambling Audit Kristy Maitre –Tax Specialist Center for Agricultural Law and Taxation July 7, 2016 At A Glance • Card Rooms ‐$1. In 2019, the IRS audited 0. 02 billion. When you have this printout, the IRS is happy to allow your gambling losses without any further proof. wagering losses are limited to wagering gains, a professional gambler can also deduct gambling-related expenses incurred in the business of gambling to the extent of wagering gains. It includes cash winnings and the fair. $600 in earnings from further forms of gambling which provides the reward that is at least 300 times of. to substantiate the reported amounts in case of an audit by tax authorities. The payer must provide you with a Form W-2G if you win: $600 or more if the amount is at least 300 times the wager (the payer has the option to reduce the winnings by the wager) $1,200 or more (not reduced by wager) in winnings from bingo or. In conclusion, gambling losses can be deductible on your federal tax return, but only up to the amount of your winnings. There are several red flags you can anticipate to prevent the occurrence of an audit. com SUBHEAD: Recording wins and losses shows proof of tax obligations. Gambling Losses In general, you can deduct losses up to the amount of your winnings on your personal return, but you must have proof to support your claims. 3. You're self-employed and don't report deductions accurately. Casinos and other payers are required to report gambler winnings that exceed a certain dollar amount. Although there’s nothing definitive written into the tax code, the IRS has consistently maintained that fantasy sports and gaming competitions involving payments constitute gambling activities for tax purpose s. Keep detailed records of each win and loss throughout the year. Unfortunately, the IRS has a different viewpoint. You cannot net Monday’s gambling winnings against Tuesday’s gambling loss to report $0 of gambling income because the win and loss occurred in different “sessions” (days). Hence, in an audit, without providing enough documentation, the agent will fail to believe you’re losing all winnings. According to IRS statistics, you’re safest if you report income in the neighborhood of $50,000 to less than $500,000. All gambling winnings are considered to be taxable income. Your total due on bingo winnings would be ($1,246 * 0. And this doesn’t matter if you’re a casual gambler or professional gambler. Gambling Losses. 25 to Indiana. RJS Law represents clients throughout California. It does not matter whether your winnings are paid in cash, in property, or as. m. Your total gambling deduction is limited to $800, the amount of your winnings. 👉 What constitutes gambling losses can you deduct What constitutes gambling losses can you deduct Are you ready for your adventure to gamble with bitcoin? Then, of course, bitcoins have to be bought first! You can buy your cryptThe tax rate that you pay on your sports betting winnings may vary from 0% to 37% depending on the amount of other income that you have, your filing status, and several other factors on your tax return. Taxable winnings. Taxpayers can claim a limited deduction for gambling losses, but the IRS keeps close tabs on these write-offs. Gambling losses become a tax deduction if you used itemized versus standard deductions. Errors in addition or subtraction will likely get caught, flagging your return for an audit, even if the mistake is in the favor of the IRS. 33% for various non-cash winnings earned through sweepstakes, wagering pools, and certain lotteries. Failure to report gambling winnings, interest and dividends, non-employee compensation (1099-MISC), K-1 items, etc. In addition to what Opus 17 said, 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. 7 million individual returns with gambling winnings on a Schedule 1, with a total gambling income of $28. At the end of the year, A had total wagering gains of $100,000, total wagering losses of $75,000, and incurred $15,000 inA high-level overview of sports betting and tax reporting. I visited the casino more than usual in 2021 and had a few good slot wins but like most had more losses when all was said and done. It also says that your gambling log “should” include other details such as name and address of casino, date and, yes, machine numbers. Dic 19 No hay comentarios Are casino jackpots taxable in california, irs gambling losses audit. For those with incomes between $200,000 and 1 million, the audit percentage doubled to 1%. Gambling facilities are required to document your winnings with a Form W-2G under certain circumstances: $1,200 or more in winnings from bingo or slot machines. But the Commissioner further determined that, under. These taxpayers were audited the least in 2019. $1,500 or more from keno after your wager. Federal Income Tax Return. Learn more about the treatment of gambling tax and gaming losses. $5,000 or. Treat Income as Business IncomeOn audit, the Revenue Agent dinged the taxpayers for $2,000 in unreported income, using only the $2,000 winnings reported by the casino on Form W-2G. The statute of limitations is a time period established by law when IRS can review, analyze. On Tuesday, the tax agency punted again,. Final Thoughts. Red flags can simply be defined as aspects in the tax file that might be a cause of concern on the part of the IRS. 00. This form is used to report the winnings as taxable income. The IRS considers winnings from gambling and winnings from the lottery the same. Irs gambling losses, how to play blackjack live. A taxpayer who has $50,000 of gambling winnings and $50,000 of gambling losses in Wisconsin for a tax year, for example, must pay Wisconsin income tax on the $50,000 of gambling winnings despite. One final note: casual gamblers can deduct gambling losses as well, but not the same way as professionals. For example, you received three Form W-2Gs for a total of $5,000 of gambling winnings. You then report the $10,000 allowable wagering loss (equal to your winnings for the year) as an itemized deduction. 23% personal income tax rate to the state of Indiana. There's a one-in-17 chance your return will be audited. $1,500 or more from keno after your wager. What triggers an IRS. That increases to $201,050 for. Gambling losses are often a trigger for IRS audits because most people don’t keep careful records of how much they lost while at the casino, racetrack, or another gambling establishment. IRS Memo 2020-009The transfer of funds from your gambling account to your general account is not deductible until you spend the funds to further your exempt purpose. No one specific thing will trigger and IRS audit. Bookmark. A taxpayer who has $50,000 of gambling winnings and $50,000 of gambling losses in Wisconsin for a tax year, for example, must pay Wisconsin income tax on the $50,000 of gambling winnings despite breaking even from gambling for the year. Professional Gambler Tax Guide 2021. A, as an itemized deduction,. For table games, as JulianC points out, the IRS will look for session information to come from the taxpayer records. . Proving gambling losses to the IRS for tax purposes is much simpler than many people believe them to be. Irs gambling losses audit $600 irs payer reporting limits; that i understand that gambling losses are. If you deduct gambling losses up to the amount of your winnings, you could be in for an audit. First, some gamblers have play at, say, 10 casinos but only want to submit the win/loss statements from 8 of them --- to support whatever they want the IRS to believe the "truth" is. Case law and IRS guidance have established that a taxpayer may determine gambling winnings and. Generally, you can deduct losses up to the amount of your winnings on your personal return, but you must have proof to back up your claims. That being said, gambling losses/winnings are generally looked at very closely by the IRS. If it’s a loss then net it to zero using the W-2G amount for winnings. Depending on the amount you won, you may be required to pay taxes on your gambling winnings. 3. The additional taxes weren't that much compared with the potential hassle of an audit. ) § 165(d) states that losses fromSeptember 12, 2023 — As football season kicks off, U. If you have questions and would like to speak with an attorney, please call 619-595-1655 or contact us online for a complimentary case evaluation. Before exiting the W-2G menu you will have the opportunity to enter the gambling losses associated with the winnings on the W-2G, if desired. The IRS levies a 25 percent gambling winnings tax on more than $5,000 in winnings from slots, keno, and lottery games. If you actively participate in the renting of your. A gambling session requires a gambler to organize and report his or her gambling transactions by time, place and activity. S. or even do your taxes for you. Tax professionals should be aware that some states, including Connecticut, Illinois, Indiana and Wisconsin, do not allow casual gamblers to deduct gambling losses as an itemized. This means that if you have $10,000 in gambling winnings and $5,000 in gambling losses, your AGI will be $10,000 higher than if you had no gambling activity. This includes cash and the fair market value of any item you win. Thus, if a gambler had a $2,000 winner on a slot machine but on the same day had also lost $1,500, the impact above the line would be a net $500. Gambling income plus your job income (and any other income) equals your total income. As a result. Certain behavior—or lack of it—can raise red flags for the IRS and result in an audit. Tom, as a valid individual audit. 12/12/2014. The only amount that can be deducted is the amount spent exclusively on gambling. Many people raising money online view their endeavors as non-taxable hobbies. 538 was written by the IRS to specifically address the required documentation to support a deduction for gambling losses. Unfortunately, the IRS has not ruled on the treatment of fantasy sports income and losses, and there is little if any authority for the proper reporting on tax returns: only IRS Letter Ruling 200532025, which discussed the various methods of reporting winnings by a taxpayer that ran a site for online game-playing tournaments. At tax time, this helps too. The IRS requires detailed records of your gambling activities, including dates, locations, amounts wagered and winnings or losses incurred. Gambling losses are deductible only to the extent of gambling winnings reported on line 21 of Form 1040. The IRS gets copies of all of the 1099s and W-2s you receive, so be sure you report. C. 18 billion • Commercial Casinos ‐$34. Gambling losses can only be written off for an amount of losses equal to the amount of winnings you received, so it only makes sense for certain people to maintain them. A mismatch sends up a red flag and causes the IRS computers to spit out a bill that the IRS will mail to you (these letters don't count as audits for purposes of the. By law, gambling winners must report all of their winnings on their federal income tax returns. (Lamb, T. Gambling losses up to the amount of gambling winnings may be deductible if you itemize. If you “netted” your winnings, that caused an Underreporter mismatch against the W-2G. Form W-2G is issued when gambling winnings other than those from bingo, slot machines, keno, and poker tournaments are $600 or more if the amount is at least 300 times the wager amount. Tickets. gov; call our Taxpayer Assistance Division at 1 800 732-8866 or 217 782-3336; or call our TDD (telecommunications device for the deaf) at 1 800 544-5304. Article continues below advertisement. The IRS and judges get suspicious if the amount of gambling income reported by a taxpayer exactly matches the total amount of gambling income reported on Form W-2Gs. ized deduction for gambling losses of $23,480. Received over 100 W-2Gs which summed to $150,000 in gross winnings. Losses are an itemized deduction on the tax return. Gambling/lottery winnings are subject to Michigan individual income tax to the extent that they are included in your adjusted gross income. Diaries and annotated financial records may qualify as sufficient, depending on how thorough they are. These losses can only be claimed against gambling income. istockphoto. What happens if the IRS audits you:What to know about IRS audit letters and more. The casino never losses and most people lose more money than they win. These red flags need to be closely inspected, in order to avoid IRS Audits as much as possible. Facts: John Coleman was a compulsive gambler who admitted. The penalty for failing to report gambling winnings can be up to 25% of the unpaid tax due, and you may also have to pay interest on any taxes owed. Claim your gambling losses as a miscellaneous deduction on Schedule A, Form 1040. IRS publication 529 says that you “must” keep a gambling log in order to substantiate your gambling losses. If you itemize your deductions on Schedule A, then you may also claim your gambling losses and other gambling-activity expenses, such as travel back and forth from a casino or track. The IRS may take issue with itemising your losses, especially if they are sizable or entirely offset your earnings from gambling. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of Coleman. , deduction for self-employment tax). The IRS limits gambling losses up to the extent of gambling winnings included on your tax return. To claim a deduction for gambling losses, you must adequately document them,. If you itemize your deductions, you can write off your gambling losses for the year on line 27, Schedule A (Form 1040). This case is a substantiation case. New - If prompted, select Taxpayer or Spouse. File a return with math errors. They are claiming gambling losses very close to their winnings, and they did. Being proactive and organized can also help minimize the risk of an audit and ensure that you are prepared should one occur. After all, most gamblers lose more often than they win. No matter whether they file a tax return, get audited, have a tax lien, or try setting up an installment. Also, watch out for the Automated Under-Reporter Exams, which begin with an IRS Notice CP2000 . In fact, they form to be a multitude of various different factors that eventually. to the. There is one golden rule to keep in mind when deducting gambling losses on your tax return. You cannot reduce the total winnings by the cost of wagers, therefore you must pay the IRS its 24% tax, plus the 3. Gambling losses include the actual cost of wagers plus expenses the taxpayer incurs in connection with the gambling activity, such as travel to and from a casino. Although you may be able to offset your reported gains with gambling losses, the IRS anticipates that you will also have had gambling winnings that were under the W2-G. The IRS may be more likely to audit taxpayers who fail to report income. Not only do great records help you when tax time comes each year, but you’ll also have proof for your claims if you ever have to go through a tax audit. If it’s a profit I would net the W-2G amount to match the profit. Taxes on or measured by income (e. In 1985, one of Daneault's clients won a $2. My co-workers answer was yes you have it, just look harder. You can only write-off (deduct) $1,000. If your standard deduction is $5,000, for example, and your itemized deductions including your gambling losses total $3,000, you're obviously better off taking the standard deduction. 24) $299. See moreWhile you are permitted to deduct gambling losses up to the amount of your winnings, doing so could lead to an audit. . Gambling losses. You would have to have an individual income above $100,525, including your winnings, to move into the 24% tax bracket. $1,200 or more from bingo or slot machine. That means you might have to pay taxes on those winnings. Gambling is fertile ground for just that! Any winnings which you earn from participating in casinos, lotteries, or sports betting will be taxed by the IRS. While you are permitted to deduct gambling losses up to the amount of your winnings, doing so could lead to an audit. The auditor requested the diary of gambling losses during the audit. It could be a full-scale, in-person state or IRS tax audit. Claiming losses year after year without any profit raises a red flag with the IRS. A win of $500 or even a scratch off win of $1, neither of. 00. Another thing that the IRS doesn’t let you do is to net your gambling winnings and losses together. When the IRS flagged the case, Daneault paid a Massachusetts man $500 to rent $200,000 worth of losing lottery and racetrack tickets. W2-G is Reportable Gambling Winnings of $1,200 or more to the IRS (i. Practitioners may need to. Also. I visited the casino more than usual in 2021 and had a few good slot wins but like most had more losses when all was said and done. All gambling losses are tax deductible to the limit of your winnings in a particular year. The dreaded IRS audit. 1 Best answer. What Casual Gamblers Need to Know. Level 15 Mark as New; Bookmark; Subscribe. My co-worker has no doubt they had the losses they reported, and probably more. Notably, the win-loss statements reflect that petitioners had gambling winnings totaling $115,142, while the Forms W–2G provide that petitioners had total gambling winnings of $322,500. 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. Additionally, not reporting gambling winnings can lead to an audit or investigation by the IRS, which can result in even more severe penalties and potentially criminal charges if the IRS believes. However, it must be noted that gambling losses are only audited under situations where there are apparent red flags pertaining to the audit process itself. 61 (a), all income from whatever source derived is includible in a U. Schedule K-1 – These are used to report each shareholder’s share of income, losses, deductions and credits when an S corporation files its annual tax return. may just trigger a letter and bill from the IRS — or it could generate an audit. Taking a closer look at the revenue from these wagers, based on the most recent data available in tax returns filed in 2021 for 2020, the IRS reported 1. If an audit is not resolved, we may request extending the statute of limitations for assessment tax. In many cases, the IRS allows gambling losses to reduce the overall winnings that are taxed. All winnings from gambling activities must be included when computing the deductible gambling losses, which is generally always an issue in a gambling loss audit. The IRS will take 24% of your winnings automatically, and you will still have to report the winnings on a Form 1040 as other income. 7 million Massachusetts State Lottery Megabucks jackpot. 15, 2023. File this form to report gambling winnings and any federal income tax withheld on those winnings. If your winnings surpassed a certain threshold last year, the IRS undoubtedly has evidence of your activity from multiple sources. The deduction for gambling losses is found on Schedule A. Information You'll Need. Machine Jackpots). The payer must issue a Form W-2G, Certain Gambling Winnings, that is if you receive, as the IRS explains, “certain gambling winnings or have any gambling winnings subject to federal income tax withholding. In other words, Judge Wherry relied upon casino win/loss statements to impeach the credibility of the taxpayers’ other evidence. To report gambling losses go to Deductions > Enter Myself > Itemized Deductions > Miscellaneous Deductions. 7 million individual returns with gambling winnings on a Schedule 1, with a total gambling income of $28. Your sports betting winnings are considered taxable income—specifically they are deemed ordinary income on your return. ” For example, if I buy an asset for $70,000, and later sell that asset for $100,000, then I would realize a gain of $30,000. "If you work for yourself and have. If an individual has gambling losses that exceed their winnings, they can deduct the losses on Schedule A as a miscellaneous deduction. Keep in mind that you can only offset gambling losses against the tax you pay on gambling wins. On my Connecticut income tax return, I must report all $50,000 of gambling winnings, yet I cannot take a $50,000 deduction for the gambling loss. The amount of losses that can be claimed is limited to the amount of gambling winnings reported for that year. That number is expected to drop to 385,500 for a loss of 138,500. If you deduct gambling losses up to the amount of your winnings, you could be in for an audit. In the U. Daneault, with his client's OK, decided to claim $65,000 in gambling losses for the year. , gambling losses can be deducted only to the extent of your gambling winnings. However, gambling losses can only be claimed if you itemize your deductions on Schedule A of your Form 1040. In that case. This replaced a tiered system, which had higher rates based on the amount you. Although he had substantial earnings through the years as an. They’re reported on the “Other income” line on Schedule 1 of your 1040 tax return. For example, receipts from a casino's ATM machine, tickets, statements or a diary. His gambling losses are $37,900. The net result of each session should be tracked. 0323) $40. Losses must be reported to the IRS, just like your winnings. Also, gambling losses can’t be carry-forwarded to offset winnings in another year. from our tax experts and community. Must itemize: Taxpayers can only deduct gambling losses and expenses if they itemize their deductions on Schedule A in Form 1040 Taxpayers will need to have more expenses than the standard deduction to itemize; for tax year 2022, the minimum is $12,950 for single filers and $25,900 for married couples filing jointly. First, you may deduct gambling losses only if you itemize deductions, which Erb said is only a third of tax filers. A keno win of $1,500 or more. A taxpayer may deduct as a miscellaneous itemized deduction (not subject to the 2% of AGI limitation) gambling losses suffered in the tax year, but only to the extent of that year's. These red flags are not limited to a certain event. " MAKING THE MOST OF YOUR LOSSES. First, let’s examine the situation for the casual (or non-professional) gambler. There are also minimum dollar limitations that apply to different types of wagers. Using a professional tax preparer is also a good bulwark against mistakes and miscalculations.