Can I Write This Off?can i write off gambling losses?
TL;DR
Yes, you can write off gambling losses, but only to the extent of your gambling winnings in the same year.
Detailed Answer
Where to Put It on the Tax Form
Report gambling losses on Schedule A, Line 28, under 'Other Miscellaneous Deductions'.
Real World Example
John, a professional poker player, won $20,000 throughout the year. However, he also lost $25,000. John can claim a deduction of $20,000 on his Schedule A, since he can't deduct more than he won.
Calculation Required
A calculation is required for this deduction.
You need to calculate your total gambling winnings and losses for the year. The amount you can deduct is the lesser of the two amounts.
Audit Risk & Documentation Tips
Gambling losses are frequently audited by the IRS. Keep accurate records of your gambling activity, including receipts, tickets, and other documentation. You should also keep a diary of your gambling activity that includes the date and type of each wager, the name and address of the gambling establishment, the names of other persons present with you, and the amounts you won or lost.
IRS Reference
IRS Publication 529, 'Miscellaneous Deductions', and IRS Topic Number 419 - Gambling Income and Losses
Relevant Industries
Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.
Page created on July 7, 2025