2007-10-07 04:31:24 · 3 answers · asked by Randy M 1 in Business & Finance ➔ Taxes ➔ United States
You report the total of your winnings. Then, if you itemize deductions you claim your losses (i.e.-how much you bet), but not more than your winnings.
You do not simply deduct losses from winnings.
2007-10-07 04:40:42 · answer #1 · answered by r_kav 4 · 0⤊ 0⤋
If you itemize, you can deduct gambling losses against gambling winnings, up to the amount of the winnings. There are very specific rules for the record keeping required to do this, including written records of ALL of your gambling activity for the year, wins and losses. see http://www.irs.gov/newsroom/article/0,,id=172190,00.html for a summary and IRS Publication 529 for more detail.
2007-10-07 11:40:11 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You have to have good documentation for all of this, but every expense you incurred to achieve those winnings, including loses are dedeductible. Includes: mileage (keep a log), bookkeeping equipment, computers (if you need it to play), pens, paper, etc.
It doesn't matter if you itemize because you can put it on page 1 of 1040 under other income or do a schedule C.
2007-10-07 11:44:06 · answer #3 · answered by Dan 3 · 0⤊ 3⤋