Since US citizens are taxed on gambling profits...

[SportsMushroom]

do you guys get tax relief for gambling losses?

I was once told that the reason we dont get taxed on gambling profits in europe is because then people would be able to use their gambling losses in their taxable income computation, and since most people lose at gambling, the government would lose a lot of tax money

so it seems strange that they tax your winnings in the US

[gafl]

In the US, you can only use your losses to offset winnings, nothing more. Don't know if you claim gambling to be your main source of income, if it's different.

[CarpeDime]

no, in the US if you win at gambling the govt goes, "....aaand we'll take half of that, thank you very much!" if you lose the govt goes "and this is our problem.....how???"

[Kaabee]

straight from irs.gov

The following rules apply to casual gamblers. Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income.

A payer is required to issue you a Form W-2G (PDF) if you receive certain gambling winnings or if you have any gambling winnings subject to Federal income tax withholding. All gambling winnings must be reported on your Form 1040, including winnings that are not subject to withholding. In addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax.

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.

[ACoochy]

Thats fukked, i feel sorry 4 u guys....As if this game isnt hard enough u then have the government taking 50% of whats made.... Something needs to be done about those laws

[Kaabee]

Thats fukked, i feel sorry 4 u guys....As if this game isnt hard enough u then have the government taking 50% of whats made.... Something needs to be done about those laws

you can deduct your losses up to the taxable amount

[PAYTON20]

Who reports gambling winnings?

[Kaabee]

Who reports gambling winnings?

offshore/table games is one thing, but it's not so easy to hide slot machine jackpot winnings.

[Lumpy81]

just dont report it

[Snowball]

you can deduct your losses up to the taxable amount

but you can also carryforward losses to the next year.
last time i did it you could carry 3k per year to the following year
not sure what it is now

[Snowball]

most tracks have ten percenters for this stuff

if you know what a ten percenter is

[teaserpleaser]

Who reports gambling winnings?