How to Report Your Gambling Losses

If you have gambling losses throughout the year, you can sometimes claim those losses against your winnings to lower tax liability. When you fill out your tax return, you need to make sure that you put these losses in the appropriate place so that you can take advantage of them. Here are the basics of how to report your gambling losses on your tax return.

Offsetting Wins

In order to claim gambling losses, you have to report any gambling wins as well. You can claim losses only up to the amount of money that you have won. This could potentially allow you to offset all of the winnings that you have to report for the year.

Filling out the Form

You should get a form W-2G from the casino or other establishment where you won your money if it is over $600 for the year. You can then take the amount that is on the W-2G form and put it on your 1040 in line Line 21, "Other Income." Then when it comes to reporting the losses, you can put the amount on Line 28, "Miscellaneous Deductions." Then you can see if your total itemized deductions are greater than the standard deduction that is allowable.

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