The increase in adjusted gross income can bump you into a higher tax bracket. For example, if you hit a $3,000 slot machine jackpot, that will increase your adjusted gross income by $3,000 regardless of any losses you may incur. Winnings count toward the taxpayer’s adjusted gross income whereas losses can only be applied, to the extent of winnings, as itemized deductions. Moreover, the tax consequences of gambling often are not as simple as tallying winnings and losses. And you cannot carry that loss over to offset gambling winnings in any subsequent year. Thus, if your losses in a given year exceed your winnings for the year, you cannot deduct those losses on your taxes.

Moreover, a net loss in a given year is never deductible. Again, it is thus imperative that you maintain contemporaneous logs–showing winnings and losses by gambling activity, establishment, and date–and other records of your gambling activities. In addition to exercising diligence in documenting your gambling winnings and losses, there are other things you should keep in mind.įirst, casinos are obligated to report your gambling winnings in excess of certain thresholds to the IRS, but do not report your losses. Gambling logs are generally accepted by the IRS as proof of losses, especially when supported by other evidence of gambling activity such as wagering tickets or receipts, payment slips provided by sports books and gaming establishments, bank records, and printouts of gambling activity maintained by casinos. So after you “ Book Direct and Save” at Las Vegas Direct, you hit the casinos armed with a log book to record your gambling activities. Save Some For Uncle Samīeing a sophisticated Las Vegas Direct consumer and occasional gambler, you may well be familiar with the Internal Revenue Tax Code provision providing that gambling losses are deductible against gambling winnings. Las Vegas Direct does not accept liability to any person for the information provided in this web site or incorporated into it by reference or for loss or damages incurred as a result of reliance upon the material contained in this web site. The reader accepts the risk of any use of such information, and should verify all relevant statements and information. The information is provided solely on the basis that readers will be responsible for making their own assessment of the matters discussed herein. Las Vegas Direct makes no warranty or representation regarding the accuracy or suitability for any purpose of the information provided. The materials presented in this web site are distributed by Las Vegas Direct as an information source only.

How to report gambling winnings to irs