Can I deduct gambling losses on my taxes if I don't have documents to support it?

Question

I reported a W2-G of $500 for winnings, which allows me to deduct up to $500. I probably do have losses this large, but obviously I don't keep receipts from casinos, lotteries, etc.

Answer 1

You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A. However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

Answer 2

As you point out you can deduct gambling losses to the extent of winnings. I'd create some sort of record of when you were at gambling establishments (credit card meal receipts, lodging, etc.) and take a guess at the amount you lost each time. Then use this to establish your losses. You may get audited and lose the deduction without the actual receipts. If this happens the worst thing that will happen is that you'll have some back taxes and interest. You can probably get any penalties waived.

But, for the taxes on $500 the IRS probably won't flag your return for a gambling audit. So the choice is yours: Offset the winnings and save about $125-$160 in taxes and sweat the possibility of an audit or pay the taxes and sleep tight knowing you gave the Feds some money you didn't have to. Next time save the receipts!

Answer 3

By law you are required to have records showing the losses, although not necessarily receipts, in order to deduct losses. It can be a hand-written log that you keep through the year of your wins and losses.

You can only deduct losses if you itemize, and then only up to the amount of winnings you are reporting for that year.

Answer 4

you can only deduct losses to the extent of your winnings. so if you won $500 and lost $200 in the same year, your winnings would net to $300. but you can't take a write-off for just a loss. wish we could ... you also need to have it all documented.

Answer 5

If you are a professional speculator, then you could. However, in your case it is very unlikely that the tax office will take it as a real deduction. In your case, based on the winnings, it seems more like a hobby, they are not going to allow that deduction for you; if you try it, you might get in trouble.

Answer 6

You can try to get records from the pit boss or receipts from at ATM. Another option is if the casino has a card you use to earn rewards. Otherwise you can claim whatever you want because it won't be a problem unless you are audited.

Answer 7

If you do your taxes by yourself, you are legally only allowed to deduct the amount of losses with the winnings. I suggest you do your taxes yourself. Or you can go to http://www.irs.gov and you can file online for free.

Answer 8

i think u cannot deduct the gambling losses. ok any way for clear clarifications go for the tax filing web sites. here is one among those which will provide u the information. this site will offer u a discount also. try for it.

Answer 9

Some casinos allow you to go online and print your history - they should at least have a request form you can fax, mail or bring to the casino.

Answer 10

deduct the losses

In the future, keep a record of your losses.