Many people wonder, “How do I deduct gambling losses without itemizing?” Here’s a quick guide to help you understand:
- Netting Wins and Losses: First, the IRS requires that you report all gambling winnings. However, you can offset these winnings with your gambling losses up to the amount of your winnings.
- Daily Tracking: Keep a daily record of your gambling activities. Include dates, amounts won or lost, locations, and types of gambling.
- Proof of Losses: Collect documentation like receipts, tickets, or statements to support your losses. Casinos often provide win/loss statements.
Taking these steps won’t eliminate the need for itemizing on your tax return but can effectively minimize your taxable income from gambling.
