Can I Deduct Gambling Losses on My Taxes?
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Summary
Gambling losses can sometimes be claimed on your taxes as a deductible expense, but only to the extent that you declare gambling winnings on your taxes. |
Gambling can be an expensive hobby, and few people realize that you can sometimes deduct your gambling losses on your tax return, such as this reader who writes: “My wife and I took a trip to Las Vegas this year, and while we did not go over our budget, we did suffer a bit of a loss at the blackjack table in the casino.
I have been told by a friend that it may be possible to deduct my gambling losses - is this true?”
Yes, it is true that you can deduct losses incurred while gambling from your Federal income taxes. However, there are a couple of very important rules:
1. You can only deduct gambling losses to the extent that you declare gambling earnings; and
2. You must have receipts.
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Anne P. Mitchell, Esq. is a noted family law expert, Internet law expert, and Professor of Law at Lincoln Law School of San Jose. Anne is the author of Surviving Divorce and Custody: The Single Father's Handbook.
State laws vary, and the above is intended as general advice, and not direct legal advice regarding any one particular situation in any one state. For direct personal legal advice related to your own situation you should consult an attorney familiar with the laws of your state and with your situation.
