Gambling Losses Tax Deductible 2018
- Are Gambling Losses Tax Deductible In 2018
- Is Gambling Losses Tax Deductible 2018
- Are Gambling Losses Tax Deductible 2018
Are Gambling Losses Tax Deductible In 2018
Is Gambling Losses Tax Deductible 2018
While most miscellaneous itemized deductions cannot be taken in 2018 through 2025, those that are not subject to the 2% of adjusted gross income floor continue to be deductible. One such deduction is for gambling losses to the extent of winnings. The IRS has ruled that amounts paid to participate in daily fantasy sports, such as DraftKings and FanDuel, are wagering (Chief Counsel Advice 202042015). These activities are not merely a matter of skill; they involve something staked on an uncertain event. This means that such amounts can be deducted by those who itemize instead of taking the standard deduction. But again, they are deductible only to the extent of winnings.
Are Gambling Losses Tax Deductible 2018
To deduct gambling losses, you must substantiate them. In one case, a compulsive gambler convinced the Tax Court that he must have sustained more losses than the winnings reported to the IRS on Form W-2G (Coleman,TC Memo 2020-146). He spent most of his retirement savings and was way behind in his bills (his cell phone was shut off). Expert testimony accepted by the court said: “if a player gambles long enough and does not win any prizes that are exceptionally large relative to the size of the wager, it would be virtually impossible for that player to have annual net gambling winnings.” The court allowed him to take an itemized deduction for gambling losses equal to his gambling winnings.
Gambling losses in 2018 will rarely be deductible. Gambling losses in 2018 will rarely be deductible since most people won't itemize, right? So gambling losses are still deductible. But the TCJA’s near doubling of the standard deduction for 2018 (to $24,000 for married couples filing jointly, $18,000 for heads of households and $12,000 for singles and separate filers) means that, even if you typically itemized deductions in the past, you may no longer benefit from itemizing. Gambling loss deductions still allowed under new tax law Friday, September 28, 2018 The Powerball and Mega Millions jackpots already are close to a combined $600 million. As the drawing times near, more people will play, creating even larger eventual jackpots. 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.