Where To Enter Gambling Losses On Tax Return

November 01, 2017

This amount will be added to your other itemized deductions and the total reported on line 29 of Schedule A. Transfer the value of all of your itemized deductions, including your gambling losses, from Schedule A to line 40 of your Form 1040 tax return. This amount will be used to reduce your total taxable income. Gambling Losses are reported in the return as Itemized Deductions (if you qualify) and are limited to the amount of gambling winnings. Do not deduct the losses from the winnings. You must enter both the winnings and the losses separately. The easiest and most accurate way to find out how to report your gambling winnings and losses is to start a free tax return on eFile.com. Based on your answers to several questions, the e-File app will select and prepare the forms necessary to report your gambling winnings and losses on your tax return. However, if you want to learn more about how your gambling income affects your taxes, read on.

How to claim gambling losses on tax return

Have you recently won some cash at the casino or racetrack? Congratulations! While it is very exciting, keep in mind there are tax implications and you should be prepared to pay federal, state and local income taxes on the winnings.

You can anticipate that the casino or other party that provides the payout to give or send you a Form W-2G. The information reported on this federal form includes the date you won, the reportable winnings, type of wager, federal and state taxes withheld and other details about the transaction.

Gambling Losses New Tax Bill

You will file a W-2G if you won money from any of the following sources (please note, the list is not exhaustive):

Where Do You Enter Gambling Losses On Tax Return

  • Horse/dog track or off track betting
  • Jai-alai
  • State-conducted lottery
  • Keno • Bingo
  • Slot machines
  • Poker winnings
  • Any other type of gambling winnings

Keep in mind, even if you win money at a charity event that is hosted by a church or other type of non-profit organization, those winnings are taxable. If you paid money to participate in the event, such as purchased cards for a game of bingo at your church, you cannot claim the funds you spent as a donation to a non-profit organization when you file your income taxes.

If you find yourself on the losing end of a game of chance, you may wonder if you can report a gambling loss on your tax return. Generally, it is not allowable, but there are exceptions. It is advisable that you consult with a tax professional if you find yourself in such a situation or have questions.

Where To Put Gambling Losses On Tax Return

For rules, laws and other information pertaining to gaming in Indiana, visit the Indiana Gaming Commission website at http://www.in.gov/igc/.