If a prize is won that is large enough to have to claim on a tax return (over $600 generally), I know that gambling losses can be counted against it if there is proof of the loss (receipts, losing lottery tickets, etc). But, in order to count these gambling losses against the larger-than-$600 prize, does the person filing the return have to be itemizing their deductions, or can it be done by someone who is just taking the standard deduction and exemption?
2007-01-02 09:50:52 · 5 answers · asked by waefijfaewfew 3 in Business & Finance ➔ Taxes ➔ United States
You can only claim gambling losses if you itemize.
You are legally required to pay taxes on ANY winnings, not just those over $600. If they're over $600, the establishment or lottery is required to issue you a 1099 showing your winnings. Below that, there's no record made and sent to the IRS.
I don't suppose there are a lot of $25 winnings on scratch-off tickets claimed on tax returns. But they're supposed to be.
2007-01-02 14:56:50 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You deduct gambling losses as an itemized deduction. They can't be claimed with the standard deduction. Gambling winnings over $600 require a W-2G be issued. YOU are required to claim winnings of any amount, even $1.00.
2007-01-02 10:44:05 · answer #2 · answered by STEVEN F 7 · 2⤊ 0⤋
You can deduct gambling losses to the extent of the gambling winnings as an itemized deduction. You are to keep a record that proves the gambling losses you claim.
2007-01-02 14:39:50 · answer #3 · answered by raindrop 4 · 0⤊ 0⤋
Gambling losses are reported on Schedule A, so the taxpayer would need to itemize.
2007-01-02 10:01:08 · answer #4 · answered by jseah114 6 · 2⤊ 0⤋
you have to do the longer form
2007-01-02 09:53:17 · answer #5 · answered by bueyes67 2 · 0⤊ 1⤋