Wednesday, January 13, 2016

Gambling Winnings or losses

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Gambling Winnings or losses:

Gambling winnings are fully taxable and must be reported on the tax return. Gambling income includes but is not limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes such as cars and trips. 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 an "Other Miscellaneous Deduction" (line 28) that is not subject to the 2% limit.