Gambling can be addictive, but for those that have a healthy "scratcher" or "powerball" habit they may be giving the IRS more of their winnings then they need too.
When you win at gambling that money is considered earnings to the IRS and taxable income. When you lose, it is possible that the IRS will let you deduct the losses. You do not have to be a professional gambler to qualify to take gambling losses as deductions, in some cases lottery tickets and church bingo events losses qualify.
This really only comes in handy when you have won a lot gambling, because your deductible amount is equal to your winnings. Example: If you win $1000 but lose $2000, you can only deduct $1000. These losses count as miscellaneous itemized deductions (this is usually used when the losses exceeds 2 percent of your adjusted gross income; if you are not a professional gambler the minimum deduction does not apply).
Since the deduction mentioned above is for federal taxes, you should also look into the rules about gambling related deductions for your state taxes.
*This is not Tax Advice, Donotloanlist.com is not responsible for you using any information read here without confirming it with a trusted qualified professional. This is not because the information here is not good, but things like this can change over time.
0 comments:
Post a Comment