Gambling
winnings are taxable on your tax return. You can deduct gambling losses
on your tax return only if you itemize tax deductions and only to the
extent of your gambling winnings. Claim your gambling losses as a
miscellaneous tax deduction on Schedule A of Form 1040. It is important
to keep an accurate diary or similar record of your gambling winnings
and gambling losses. To deduct your gambling losses on your tax return,
you must be able to provide receipts, tickets, statements or other
records that show the amount of both your gambling winnings and
gambling losses. You cannot deduct or carry forward a net gambling loss
on your tax return; even if you are a professional gambler.The IRS provides the following guidelines
for proving gambling winnings and gambling losses that you report on your on
your tax return:
 | an accurate diary or similar record regularly maintained by the taxpayer, supplemented
by verifiable documentation usually is acceptable evidence for substantiation of
gambling winnings and gambling losses. In general, the diary should contain at least the following
information:
| date and type of specific wager or
gambling activity; |
| name of gambling establishment; |
| address or location of gambling establishment; and |
| name(s) of other person(s) present with you at gambling establishment. |
| amount(s) of
gambling winnings or gambling losses. |
|
| Verifiable documentation includes, but is not limited to,
gambling tickets, canceled
checks, credit records, bank withdrawals, and statements of actual
gambling winnings or payment
slips provided by the gambling establishment. When possible, the diary and available
documentation of the placement and settlement of a wager should be supported by such
documentation as hotel bills, airline tickets, gasoline credit cards, or affidavits or
testimony from responsible gambling officials regarding the wagering activity. |
|
