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Names of people you were with. Address of the gambling site. Article continues below advertisement. In order to deduct losses, you essentially have to “prove” you lost this money. The best way to show this proof is by reporting your total gambling income. Tax deductions also lower your overall tax liability. As a result, it is always wise to fully report income in order to claim as many tax deductions as possible. Your and your spouse's filing status. Amount of your gambling winnings and losses. Any information provided to you on a form w-2g. The tool is designed for taxpayers who were u. Citizens or resident aliens for the entire tax year for which they're inquiring. Gambling losses up to the amount of gambling winnings you must report the full amount of your gambling winnings for the year on schedule 1 (form 1040), line 21. You deduct your gambling losses for the year on schedule a (form 1040), line 16. You can't deduct gambling losses that are more than your winnings. These losses are then deducted from your gambling winnings to reduce your taxable income, up to the amount of your winnings. For example, if you won $5,000 through gambling in 2020, you would report that as taxable income. If you lost $7,500 through gambling that same year, then you would list those losses on schedule a. Gambling losses: if you are going to deduct gambling losses, you must have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings. Technically, if you do not have these records, the irs can disallow your deduction
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