Categories
BLOG

can i claim lottery tickets on my taxes

Can i claim lottery tickets on my taxes

© 2007–2016 Credit Karma, Inc. Credit Karma™ is a registered trademark of Credit Karma, Inc. All Rights Reserved. Product name, logo, brands, and other trademarks featured or referred to within Credit Karma are the property of their respective trademark holders. This site may be compensated through third party advertisers.

iPhone is a trademark of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.

Android is a trademark of Google Inc.

The Equifax logo is a registered trademark owned by Equifax in the United States and other countries.

Instantly receive your free credit score and credit report card online. Free credit tools to track and optimize your credit score. No credit card needed & no hidden fees

Can You Claim Gambling Losses on Your Taxes?

Updated for Tax Year 2020

Gambling losses are indeed tax deductible, but only to the extent of your winnings. Find out more about reporting gambling losses on your tax return.

Gambling losses are indeed tax deductible, but only to the extent of your winnings and requires you to report all the money you win as taxable income on your return. The deduction is only available if you itemize your deductions. If you claim the standard deduction, then you can’t reduce your tax by your gambling losses.

Keeping track of your winnings and losses

The IRS requires you to keep a log of your winnings and losses as a prerequisite to deducting losses from your winnings. This includes:

  • lotteries
  • raffles
  • horse and dog races
  • casino games
  • poker games
  • and sports betting

Your records must include:

  • the date and type of gambling you engage in
  • the name and address of the places where you gamble
  • the people you gambled with
  • and the amount you win and lose

Other documentation to prove your losses can include:

  • Form W-2G
  • Form 5754
  • wagering tickets
  • canceled checks or credit records
  • and receipts from the gambling facility

Limitations on loss deductions

The amount of gambling losses you can deduct can never exceed the winnings you report as income. For example, if you have $5,000 in winnings but $8,000 in losses, your deduction is limited to $5,000. You could not write off the remaining $3,000, or carry it forward to future years.

Reporting gambling losses

To report your gambling losses, you must itemize your income tax deductions on Schedule A. You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. If you claim the standard deduction,

  • You are still obligated to report and pay tax on all winnings you earn during the year.
  • You will not be able to deduct any of your losses.

Only gambling losses

The IRS does not permit you to simply subtract your losses from your winnings and report your net profit or loss. And if you have a particularly unlucky year, you cannot just deduct your losses without reporting any winnings. If the IRS allowed this, then it’s essentially subsidizing taxpayer gambling.

The bottom line is that losing money at a casino or the race track does not by itself reduce your tax bill. You need to first owe tax on winnings before a loss deduction is available. Therefore, at best, deducting your losses allows you to avoid paying tax on your winnings, but nothing more.

Get every deduction
you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

Looking for more information?

Related Articles
More in Jobs and Career

Get more with these
free tax calculators and
money-finding tools

TaxCaster
Calculator

Estimate your tax refund and avoid any surprises

W-4
Withholding Calculator

Adjust your W-4 for a bigger refund or paycheck

Tax Bracket Calculator

Find your tax bracket to make better financial decisions

Self-Employed
Expense Estimator

Enter your annual expenses to estimate your tax savings

Dependents Credit &
Deduction Finder

Learn who you can claim as a dependent on your tax return

ItsDeductible™

Turn your charitable donations into big deductions

Documents Checklist

Get a personalized list of the tax documents you’ll need

Education Credit &
Deduction Finder

Find out what you’re eligible to claim on your tax return

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

Your security.
Built into everything we do.

TURBOTAX ONLINE/MOBILE

  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. $0 federal (for simple tax returns) + $0 state + $0 to file offer only available with TurboTax Free Edition; offer may change or end at any time without notice. Actual prices are determined at the time of print or e-file and are subject to change without notice. Savings and price comparisons based on anticipated price increase. Special discount offers may not be valid for mobile in-app purchases.

Pays for itself (TurboTax Self-Employed): Estimates based on deductible business expenses calculated at the self-employment tax income rate (15.3%) for tax year 2019. Actual results will vary based on your tax situation.

Anytime, anywhere: Internet access required; standard data rates apply to download and use mobile app.

Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary. The IRS issues more than 9 out of 10 refunds in less than 21 days.

Pay for TurboTax out of your federal refund: A $40 Refund Processing Service fee applies to this payment method. Prices are subject to change without notice.

TurboTax Help and Support: Access to a TurboTax specialist is included with TurboTax Deluxe, Premier, Self-Employed and TurboTax Live; not included with Free Edition (but is available as an upgrade). TurboTax specialists are available to provide general customer help and support using the TurboTax product. SmartLook on-screen help is available on a PC, laptop or the TurboTax mobile app. Service, area of expertise, experience levels, wait times, hours of operation and availability vary, and are subject to restriction and change without notice.

Tax Advice, Expert Review and TurboTax Live: Access to tax advice and Expert Review (the ability to have a Tax Expert review and/or sign your tax return) is included with TurboTax Live or as an upgrade from another version, and available through December 31, 2020. These services are provided only by credentialed CPAs, Enrolled Agents (EAs), or tax attorneys. Some tax topics or situations may not be included as part of this service, which shall be determined in the tax expert’s sole discretion. For TurboTax Live, if your return requires a significant level of tax advice or actual preparation, the tax expert may be required to sign as the preparer at which point they will assume primary responsibility for the preparation of your return. Intuit may offer a Full Service product to some customers. For the Full Service product, the tax expert will sign your return as preparer. Payment by federal refund is not available when a tax expert signs your return. On-screen help is available on a desktop, laptop or the TurboTax mobile app. Unlimited access to TurboTax Live CPAs and EAs refers to an unlimited quantity of contacts available to each customer, but does not refer to hours of operation or service coverage. Service, area of expertise, experience levels, wait times, hours of operation and availability vary, and are subject to restriction and change without notice.

Smart Insights: Included with TurboTax Deluxe, Premier, Self-Employed, TurboTax Live or with PLUS benefits and is available through 11/1/2021. Terms and conditions may vary and are subject to change without notice.

My Docs features: Included with TurboTax Deluxe, Premier, Self-Employed, TurboTax Live or with PLUS benefits and is available through 12/31/2021. Terms and conditions may vary and are subject to change without notice.

Tax Return Access: Included with all TurboTax Deluxe, Premier, Self-Employed, TurboTax Live or prior year PLUS benefits customers and access to up to the prior seven years of tax returns we have on file for you is available through 12/31/2021. Also included with TurboTax Free Edition after filing your 2019 tax return. Terms and conditions may vary and are subject to change without notice.

Easy Online Amend: Included with TurboTax Deluxe, Premier, Self-Employed, TurboTax Live or with PLUS benefits. Make changes to your 2019 tax return online for up to 3 years after it has been filed and accepted by the IRS through 10/31/2022. Terms and conditions may vary and are subject to change without notice.

#1 best-selling tax software: Based on aggregated sales data for all tax year 2018 TurboTax products.

Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.

CompleteCheck: Covered under the TurboTax accurate calculations and maximum refund guarantees.

Get tips from Turbo based on your tax and credit data to help get you to where you want to be: Tax and credit data accessed upon your consent.

1099-MISC Snap and Autofill: Included in TurboTax Self-Employed and TurboTax Live Self-Employed. Available in mobile app only. Covers 1099-MISC within Schedule C. Feature currently available for new TurboTax filers with 1099-MISC income.

Year-Round Tax Estimator: Included in TurboTax Self-Employed and TurboTax Live Self-Employed only. This product feature is only available for use until after you finish and file in a self-employed product.

Refund Advance is a service offered by Intuit TT Offerings Inc. (NMLS # 1889291), a subsidiary of Intuit Inc.

TURBOTAX GUARANTEES

  • 100% Accurate Calculations Guarantee: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we’ll pay you the penalty and interest.

Maximum Refund Guarantee – or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we’ll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Online Free Edition customers are entitled to payment of $30.

100% Accurate Expert Approved Guarantee: If you pay an IRS or state penalty (or interest) because of an error that a TurboTax CPA, EA, or Tax Attorney made while providing topic-specific tax advice, a section review, or acting as a signed preparer for your return, we’ll pay you the penalty and interest.

Audit Support Guarantee: If you received an audit letter based on your 2020 TurboTax return, we will provide one-on-one support with a tax professional as requested through our Audit Support Center. If we are not able to connect you to one of our tax professionals, we will refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Free Edition customers are entitled to payment of $30. We will not represent you or provide legal advice. Excludes TurboTax Business.

TurboTax Free Guarantee: $0 Federal + $0 State + $0 To File offer is available for simple tax returns with TurboTax Free Edition. A simple tax return is Form 1040 only, without any additional schedules. Situations covered include:

  • W-2 income
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV
  • Claiming the standard deduction
  • Earned Income Tax Credit (EIC)
  • Child tax credits
  • Satisfaction Guaranteed:
    • If you use TurboTax Online or Mobile:
      Satisfaction Guaranteed — or you don’t pay. You may use TurboTax Online without charge up to the point you decide to print or electronically file your tax return. Printing or electronically filing your return reflects your satisfaction with TurboTax Online, at which time you will be required to pay or register for the product.
    • If you bought or downloaded TurboTax software from a retailer:
      Try TurboTax software. If you’re not satisfied, return it to Intuit within 60 days of purchase with your dated receipt for a full refund.
    • If you bought or downloaded TurboTax software directly from us:
      Try TurboTax software. If you’re not satisfied, return it within 60 days of shipment with your dated receipt for a full refund (excluding shipping & handling).
  • TURBOTAX CD/DOWNLOAD

    • Installation requirements: Product activation required via Internet. Download option requires free online Intuit account. You must accept the TurboTax License Agreement to use this product. Not for use by paid preparers.

    TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees apply for e-filing state returns*. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase. Prices subject to change without notice.

    Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary. The IRS issues more than 9 out of 10 refunds in less than 21 days.

    Pay for additional TurboTax services out of your federal refund: A $40 Refund Processing Service fee applies to this payment method. Prices are subject to change without notice. This benefit is available with TurboTax Federal products except TurboTax Business.

    About our TurboTax Product Experts: Customer service and product support vary by time of year.

    #1 best-selling tax software: Based on aggregated sales data for all tax year 2019 TurboTax products.

    Data Import: Imports financial data from participating companies; may require a free Intuit online account. Quicken and QuickBooks import not available with TurboTax installed on a Mac. Imports from Quicken (2018 and higher) and QuickBooks Desktop (2018 and higher); both Windows only. Quicken import not available for TurboTax Business. Quicken products provided by Quicken Inc., Quicken import subject to change.

    *Early e-filing fee $20 each. Anticipated fee increase expected in March 2021.

    Gambling losses are indeed tax deductible, but only to the extent of your winnings. Find out more about reporting gambling losses on your tax return. ]]>