IF I CLAIM $100 IN LOTTERY LOSS WILL I BE GIVEN A FULL $100 REFUND AT THE END OF THE YEAR WHEN I DO MY TAXES?
2007-02-21 11:03:25 · 6 answers · asked by jahel318 1 in Business & Finance ➔ Taxes ➔ United States
Hardly. The best you can do is wipe out the tax bite on your gambling winnings.
You can claim gambling losses only to the extent of gambling winnings. You must claim all gambling winnings whether or not you received a W2G or tax was withheld from the winnings.
If you itemize deductions, you may deduct your losses, up to the amount of gambling winnings claimed. If your losses are more than your winnings, the excess losses are not deductible.
See the link below for more information.
2007-02-21 11:11:22 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Yes and no. Yes, if you have enough itemized deductions to exceed the Standard Deduction that everyone is entitled to, you can choose to use the Itemized list rather than the Standard Deduction to reduce your income that you pay taxes on in a given year. Gambling losses are deductible if you itemize, but not to exceed your winnings in any given year that you are declaring and paying taxes on. In other words, say you win $10,000 gambling in 2006. You now owe taxes on your winnings. If you can document your losses, you can offset the gambling earnings by $10,000 in losses and not have to pay taxes on the winnings. So no, you can't get a refund on your losses, you can only offset the winnings you have to pay taxes on.
2007-02-21 19:52:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Uh, no.... surely that doesn't surprise you.
If you show gambling WINNINGS as income on your tax return, and if you itemize deductions, you can deduct gambling losses up to the amount of your reported winnings as long as you have good records of ALL of your gambling activity for the year. So if your total winnings for the year were $100, you might be able to get out of paying income taxes on that $100 if you could prove that your losses for the year were as much as, or more than, your winnings.
2007-02-21 19:10:23 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
You can only deduct lottery and gambling losses up to the extent of your winnings.
The losses are deducted on your schedule A, itemized deductions.
2007-02-21 19:09:49 · answer #4 · answered by D D 2 · 4⤊ 0⤋
yes u can claim losses but it should not be any larger than your gain
2007-02-21 19:17:46 · answer #5 · answered by tinnee 2 · 0⤊ 0⤋
yes you can but only up to your winnings. Then you need to have receipts to prove it also.
2007-02-21 19:53:25 · answer #6 · answered by linluv2001 2 · 0⤊ 0⤋