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What the W-2 reports is only the winnings
However, you CAN deduct gambling losses UP TO your winnings (so gambling losses can't be used to offset OTHER income)
TO do this, you'll have to itemize your deductions on schedule A when you do your taxes, for the year in question.
Here's the IRS guidance:
You may deduct gambling losses only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. Claim your gambling losses on Form 1040, Schedule A, as a miscellaneous itemized deduction that is not subject to the 2% limit.It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.
can i show my statement for my checking account, credit card account ? Is t enough
yes, there have been cases where even a written log has sufficed ... statements such as credit card or bank statements are perfect
you don't send in copies with your taxes, you simply write it off on schedule A ... gambling losses, as you saw above are not restricted to the 2% agi minimum so you can completely wipe out any winnings if you lost more than you won
The, should be audited, you'll have thos documents in your files
IF you should be, and there's no reason to think that you would be, ANY MORE than others with gambling losses .... As you probably know, gambling losses are quite common
I have withhold 5% for my winning in state tax. can it calim as deduction
NOt withholdings, but whatever state taxes you actually owe when you do the taxes(whether it's more of less that what you had withheld) IS deductible
In this case, I actually loss in total, but mypart I win still has to pay for state tax of couse. However, this can be claim as deductuin in federal tax
That's exactly right
Yes, you have it ... and of course the 5% withheld at the state level offsets whatever you owe
i don't have to send the statements until IRS ask
thanks, XXXXX XXXXX have any question
Just as you don't show OTHER documents you can deduct like property taxes
Great .. Glad we could help
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