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Thread: Gambling Losses Tax Deduction. Is This New This Year

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    Gambling Losses Tax Deduction. Is This New This Year

    Gambling Losses Up to the Amount of Gambling Winnings
    You must report the full amount of your gambling winnings for the year on your Schedule 1 (Form 1040 or 1040-SR). You deduct your gambling losses for the year on your Schedule A (Form 1040 or 1040-SR). Gambling losses include the actual cost of wagers plus expenses incurred in connection with the conduct of the gambling activity, such as travel to and from a casino. You can't deduct gambling losses that are more than your winnings. Generally, non-resident aliens can't deduct gambling losses on your Schedule A (Form 1040-NR). You can't reduce your gambling winnings by your gambling losses and report the difference. You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Therefore, your records should show your winnings separately from your losses.


    I always thought if you itemized gambling losses only the actual gambling losses were deductible. This now mentions travel to the casino as a deductible loss. So I imagine air flight cost is now deductible. The above quote is from Pub 529. Any comments?

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    Good pickup, MWP!

    The key here is that you must itemize to write off gambling losses plus expenses against winnings. The caveat is there aren't many who itemize any longer, since the tax code changes of a year or two ago. Standard deduction is $12,200 for 2019, so your deductible expenses must exceed that to take advantage of this. And, of course, if you file as a professional gambler, this is not a change as expenses were always deductible.

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