Gambling and Taxes

Where can I find details on taxes from gambling?

Say I won $2k on a slot machine, what will the tax requirement be? Can the win be totally offset by an equivalent amount of losses?

I think you have to claim it and they will take something like 30% of it. I believe this is what I was told.

Where can I find details on taxes from gambling?

 

Say I won $2k on a slot machine, what will the tax requirement be? Can the win be totally offset by an equivalent amount of losses?

Gambling losses are tax deductible up to your gambling winnings. So if you have $2,000 in winnings, and $1,500 in losses, you'll have to claim $500. If your losses exceed your winnings, none of your winnings will be taxable.

You have to report all winnings on your tax returns though. On your itemized deductions schedule you can claim a deduction for losses for the equivalent amount.

Will never be a dollar for dollar offset to be honest. You cannot just claim losses on Schedule A, you have to have proof that you lost the amounts.

Will never be a dollar for dollar offset to be honest. You cannot just claim losses on Schedule A, you have to have proof that you lost the amounts.

While technically true, you only have to prove it if the IRS by chance picks your return for an audit.

While technically true, you only have to prove it if the IRS by chance picks your return for an audit.

How would you prove this though. It's not like the dealer gives you a receipt that says you got hosed.

Not a gambler. Do you get a 1099 when you cash in your winning chips?

How would you prove this though. It's not like the dealer gives you a receipt that says you got hosed.

That, I have no idea.

Not a gambler. Do you get a 1099 when you cash in your winning chips?

You get a tax form if it's above a certain amount, yes.

Will never be a dollar for dollar offset to be honest. You cannot just claim losses on Schedule A, you have to have proof that you lost the amounts.

Friend suggested buying and keeping losing lottery tickets or if going to a horse track, keep losing tickets and maybe pick some others up off the ground.

Friend suggested buying and keeping losing lottery tickets or if going to a horse track, keep losing tickets and maybe pick some others up off the ground.

There have been cases where the IRS denied losing tickets that had smudges from being on the ground and stepped on. Wouldn't recommend it.

While technically true, you only have to prove it if the IRS by chance picks your return for an audit.

Can you say Red Flag.

Friend suggested buying and keeping losing lottery tickets or if going to a horse track, keep losing tickets and maybe pick some others up off the ground.

Correct on all but the picking up losing tickets off the ground. Not sure what the big deal is about trying to fully offset winnings to be honest. If I won $ 2,000 why in heck do I want to try and lose it all back?

Can you say Red Flag.

Very unlikely the IRS is going to pick a return with $2k in gambling winnings and losses to audit.

Correct on all but the picking up losing tickets off the ground. Not sure what the big deal is about trying to fully offset winnings to be honest. If I won $ 2,000 why in heck do I want to try and lose it all back?

Well, there's no way to claim losses on a blackjack, craps or roulette table. Why should you pay taxes on slot machine winnings when you actually lost more over the year than you won?