Asked by cavener  |  Submitted January 29, 2018

How should I handle gambing winnings & losses on my tax return? I won $75,000 but then lost all of that and more.

I rent, I am over 65, and I am married. We have minimal deductions. Can I itemize my return?

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  Answers  |  1

January 30, 2018

Your age is not relevant. you may deduct gambling losses only if you itemize your deductions on Form 1040, Schedule A and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as "Other Miscellaneous Deductions" (line 28) that is not subject to the 2% limit.

To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses. This is an overly simplified method, so I suggest you contact an experienced tax professional to help you.

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