![]() It's the same as keeping money in the bank and letting it earn interest, but never making a withdrawal. Your wins are considered income even if you never withdrew any money from your account. On winnings before a loss deduction is Yes. On winnings before a loss deduction is available. Losing money does not by itself reduce your tax bill. ![]() This, then it's essentially subsidizing taxpayer gambling. In other words, Just deduct your losses without reporting any winnings. Tax by your gambling losses and therefore will not see your refund change atĪnd if you happen to have a bad year, you cannot (because you don't have enough expenses to itemize) then you can't reduce your Medical, charitable deductions, etc.) If you claim the standard deduction, Secondly, the deduction for your losses is only available if you areĮligible to itemize your deductions (have mortgage interest, real estate taxes, The IRS has very specific rules and limitations as to how the gamblingįirst, you may deduct gambling losses (that's why we ask you enter theĪmount) but it is only deductible to the extent of your winnings. Subtract your losses from your winnings and report your net profit or Why? Because the IRS does not permit you to simply Unfortunately, it is very common that your refund will not change after And no - the winnings and losses will not cancel each other out. Yes, you will still need to pay taxes on the winnings.
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