I won a huge sum in prize winings. Now it is income tax time. The forms state I can claim gambling losses equal to the amount I won. Do I need to show I have gambling losses. I won this in late fall. I never expected to win, anything, so I never kept my lossing tickets. If I keep losing tickets this year can I claim them next year, for this years big win?
2007-04-08 14:52:05 · 4 answers · asked by dandeelion05 1 in Business & Finance ➔ Taxes ➔ United States
Depending on how big the win was you might get audited by the IRS if you claim losses equal to your winnings. They might have you prove that you really did spend all the money on losing tickets that you claim that you spent. You need to make sure that your losing tickets are for the same year that your win is for. Also, your losses would be deducted on Schedule A - Itemized Deductions - line 27. Even if you are successful at wiping out your winnings by losses, you might still have to pay state income taxes on the win. Some states tax you on winnings, but don't let you deduct any losses. Massachusetts is one state like that.
2007-04-08 15:00:12 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You need to keep receipts and records of your losses. Any losing tickets must be kept as proof. Other gaming losses can be logged in a diary if it's kept at the time of the loss. You need to provide a high level of detail for this to be accepted by the IRS, such as date and time, the name and address of the casino, slot machine or table numbers, and total winnings and losses for each gambling session.
If you have "comp" cards from the casinos you should make sure you use them in the slots and have the pit boss record your table action to it every time. You can then get a printout from the casino of all of your plays, wins and losses.
2007-04-08 14:59:49 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 1⤋
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.
2016-04-01 04:22:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I WORKED AT A CASINO
AND THE BEST THING TO DO IS WHEN YOU HAVE THEM TAKE OUT FOR TAXES THEY GET A PERCENT OF THE MONEY THAT IS TAKEN OUT I RECOMMEND THAT YOU DO NOT HAVE THEM TAKE OUT ANY TAXES THERE AND YOU PUT UP SOME OF THE MONEY INTO A SAVINGS ACCT. SO THAT IF AT THE END OF THE YEAR YOU END UP HAVEING TO PAY IN YOU HAVE THE MONEY.
AND AS FAR AS GAMBLING LOSSES YOU CAN CLIAM UP TO $500 IN LOSSES W/OUT WINNING BUT WHEN YOU DO WIN YOU CAN CLAIM NO MORE THAT WHAT YOU WIN AND YOU WILL HAVE TO HAVE PROOF OF THIS IF YOU GET AUDITED AND I DID BUT YOU LOSS CAN BE IN LOTTO TICKETS LIKE SCRACH-OFFS, POWER BALL ANY TIME YOU USE THE ATM AT THE CASINO , OR EVEN CHECK CASHINNG AT THE CASINO SO YOU NEED TO MAKE SURE THAT YOU SAVE ANY OF THESE THINGS SO THAT YOU HAVE PROOF OF IT IF YOU GET AUDITED
2007-04-08 15:09:08 · answer #4 · answered by Michelle T 1 · 0⤊ 4⤋