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Most people put their gambling winnings on their 1040 as “Other Income,” according to the IRS. On itemized taxes, you can deduct gambling losses from the taxes on your winnings. Kansas state taxes
During 2023, I had gambling gains and gambling losses. Are there income tax implications you can describe for a person like me who is a casual gambler? — C.H., AD HOC
When completing your own tax return, you report your winnings on Form 1040, Schedule 1; you’ll report your losses on Schedule A. Professional gamblers can file a Schedule C for the self-employed.
Essentially, in order to qualify for a deduction of losses from wagering, the taxpayer can only deduct up to the amount of gains accrued from wagering. In Commissioner v. Groetzinger, the Supreme Court Justice Blackmun alludes to Section 165(d) which was a legislative attempt to close the door on suspected abuse of gambling loss deductions. [2]
United States, 633 F. Supp. 912 (D. Nev. 1986), [1] was a federal tax refund case, decided in 1986, regarding the U.S. federal income tax treatment of the gambling income of a professional gambler. Because of this case, gambling winnings in the United States can in certain cases be treated as business income for federal income tax purposes.
If you win money on a gambling trip, you can deduct any losses from the same trip before you calculate the taxes on your winnings. You can only deduct losses up to the amount of your winnings, and ...