Tax Guide for Aliensand PublicationU. For you and your family.
First, you may deduct gambling losses only if you itemize deductions, which Erb said is only a third of tax filers. For information on withholding on gambling winnings, refer to PublicationTax Visa cardsallows gambling and Estimated Tax. You Might Also Like Find out more about reporting gambling losses on your tax return. Limitations on loss deductions The amount of gambling losses you can deduct can never exceed the winnings you report as income. Introduction Gambling losses are indeed tax deductible, but only to the extent of your winnings. Don't count on it.When it comes to writing off gambling losses on your income tax return, the IRS is very strict. Every year the IRS receives tax returns from people who claim their. You may be able to deduct gambling losses if you itemize deductions. You CANNOT deduct more than the amount of gambling income you report on your return. The biggest single thing to know is that you can only deduct gambling losses for the year to the extent of your gambling winnings for the year.