How to set off Gaming Losses
If you live in U.S. it is interesting to note that losses incurred while gambling can be written off whiling filing your tax returns. This requires that all documentary evidence like receipts, tickets should be retained to provide while filing a tax claim. Hence it is mandatory that all records of wins and losses be kept meticulously if you intend to claim a set off of your gambling losses against your taxable income. These records may include lottery stubs, casino receipts and other such evidence of your gambling wins and losses.
What you require:
- The IRS 1040 form
- Details of your wins and losses
1. If you intend to claim rebate of your gambling losses, then the most primary requirement is to maintain a meticulous record of all your gambling transactions during the year. Hence details of all addresses of the online sites and the evidence in form of invoices, bills, or stubs of tickets purchased showing the amounts won or lost should be painstakingly retained to refer to while claiming your tax deductions. Such records should contain all the relevant details including the date and the various games played the name and address of the establishments or websites and of course the money you may have won or lost against that particular receipt.
2. The receipts enlisting your annual winnings have to be kept safely because they have to be attached with your claim form as supporting documentary evidence. It is on line 21 of the IRS form that the details of your gambling winnings for the current year should initially be entered and then the amount of previous year’s winnings should be added to this figure.
3. The gambling receipts are also needed to be preserved in order to check the actual deductions already made towards taxes by some of the gambling businesses and the receipts given by them have to be preserved with more care. Line 64 of the IRS form needs this input of prior deductions.
4. Line 27 of the form requires the data regarding the actual total of losses from gambling under the heading requesting information about miscellaneous deductions. You have to remember that deductions of losses cannot be more than the money won – line 21- during the year under assessment.
5. The ultimate action you need to do is fill all details as requested in the claim form and please do not forget to sign it before submitting it to the IRS authorities.