Lottery tickets: How do you claim previous tickets as tax deductable?

Question

I've heard that if you save your tickets; then win more than 600.00, you can present the old tickets to show that you spent X amount of dollars to reach that win. Does anybody know how this works? Is it deducted when you claim your prize or when we pay our annual taxes? (or is it even true)

Answer 1

Not exactly true. If you have gambling winnings and you itemize, you can deduct the amount of your gambling losses on your tax return up to the amount of the winnings - requirements are considerably more though than just having the losing lottery tickets, since there's no way to show those were even yours. You have to keep a log through the year of ALL of your gambling activity, wins and losses, with dates, places, type of activity, and who was with you.

Answer 2

Gambling losses are deductible as an itemized deductions up to the amount of gambling winnings claimed on your 1040. If you do itemize and have been 1099'ed for gambling winnings... You can write them off as an itemized deduction. You don't have to show any one your actual losing tickets. Just keep them in case you ever get audited.

Answer 3

Gambling winnings are fullly taxable as ordinary income.

If you have proof of gambling losses (such as losing tickets) you can deduct your losses up to the limit of your winnings IF you itemize deductions. You also need to keep detailed written records all year of all of your gambling activities. These records need to be kept at the time of the gambling sessions. Don't think that picking up a bunch of losing tickets off the floor will help you get the deduction; it won't.

Answer 4

Your losses can be deducted against your winnings over and above the 2% AGI hurdle to itemize it.

Answer 5

you take them off when you file your annual taxes.