Gambling Losses

Some people may have relied on Lady Luck herself in order to bring in more cash. Nothing wrong with gambling, but come tax season you want to do everything right. That includes deducting your gambling losses- not something a lot of people are aware!

This only works if you itemize. It’s also limited to the number of winnings you also report, but you can include things such as lottery or raffle tickets and non-winning bingo!

So, if you enjoy gambling every once in a while, make sure you’re prepared to deduct your losses. That means you’ll have to keep all your gambling receipts and potentially making a diary, as recommended by the IRS.

Writing down your gambling activity is crucial, so you should include the date and type of wagering, the name and the location of the gambling establishment as well as the names of the people who were with you during that time. Of course, don’t forget to take note of the amounts you lost or won!