So incomr the fair market value of any item you win. The IRS requires you to keep the following information about each gambling win and loss:.
Indeed, gambling income must be reported even for winnings on an Indian reservation, from illegal activities, or even from foreign countries, such as Macau. If I keep losing tickets this year can I Limitations on loss deductions. Quicken import not available for TurboTax Business. Enter your annual expenses to estimate your tax savings. Therefore, at best, deducting your losses allows you to avoid paying tax on your winnings, but nothing more.Gambling losses are indeed tax deductible, but only to the extent of your winnings. Find out more about reporting gambling losses on your tax return. The amount of gambling losses you can deduct can never exceed the winnings you report as income. Taxation of Gambling Income. The tax code discourages gambling. Winnings from gambling, sweepstakes, lotteries, and raffles are fully taxable as "Other Income " on Form , but losses cannot be netted against winnings. Also, your losses would be deducted on Schedule A - Itemized Deductions - line Even if you are successful at wiping out your winnings by losses, you might still have to pay state income taxes on the win.